DJIA Makes 52 Week New High Close...

Semiconductors $SOX, Healthcare XLV and Financials XLF rallied on Friday leading the SPX to a 52 week New High Close. Earnings will power the SPX through 1,075 or down from 1,075 next week depending on whether guidance for Q4 is positive to better than expected or lower... DJIA + 78.07 +0.80% SP500 + 6.01 +0.56% COMPQ + 15.35 +0.72% Russell 2000 + 7.17 +1.18% Exchange NYSE NASD Advancing 1,815 1,827 Declining 1,186 865 Oil $71.77 +0.08 Gold $1,048.10 -7.70 SOX 326.44 +10.38 VIX 23.12 -1.06 The VIX moved down and did confirm the move up in the SPX on Friday. Friday was the second lowest close for the VIX in the past year. The VIX closed at 23.09 on July 24. The SOX moved up and did confirm the move up in the COMPQ. Strongest Sectors: XLV +0.94%...XLF +0.86%...XLK +0.67% Weakest Sectors: XLE -0.09%...XLY -0.04%...XLB +0.10% Seven of nine sectors moved higher on Friday. Healthcare, Financials, Technology and Utilities were stronger than the SPX +0.56%. Financial stocks stronger than XLF +0.86%: AFL, ICE, CME, STT, SCHW, NTRS, USB, ALL, TROW, JPM, IVZ, BAC, TRV, PNC and ETFs UYG and FAS. Tech stocks stronger than XLK +0.67%: TXN, IBM, HPQ, EMC, MA, CSCO, INTC, GLW, SYMC, ADP, AMAT and ADBE. Sector Watch Up Trending: XLK, XLB, XLY, XLV Horizontal Breakout: XLF Sideways: XLE, XLP, XLI, XLU Down Trending: Key Resistance Levels: 1,075 = 875 Breakout Chart Target 1,100 = September 2008 Old Support Key Support Levels 1,061 = Sep 16 S1 Level 1,056 = Sep 25 R1 level 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target 1,017 = Aug 27 Support Low 1,007 = November 2008 Horizontal Resistance The broad indices finished the week higher after forming a hammer last Friday which was followed by a strong support bounce on Monday and a support bounce continuation all week. Stocks were helped on Thursday by better than expected earnings from DJIA and SPX component AA. (click image to enlarge) The DJIA, COMPQ and RUT had larger moves on Friday than they were Thursday. Only the SPX had a smaller move on Friday. The NDX underperformed the COMPQ for second straight day. The DJIA hit a 52 week closing high on Friday with a stronger move than Thursday fueled by strength in IBM, HPQ, CSCO, INTC and CVX. (click image to enlarge) Semiconductors SOX which had failed to confirm the move up in the COMPQ on Wednesday and Thursday with strong move on Friday led by MRVL, ALTR, BRCM, LLTC, MXIM, KLAC, INTC and LRCX. (click image to enlarge) Last Friday the SPX formed a black hammer bouncing off of its 1,020 support area. Monday formed the equivalent of a bullish engulfing pattern as buyers overpowered sellers with a strong support bounce. The bounce continued through Friday as the SPX rose for the fifth straight day to close at 1,071.49 its second highest close this year. Its highest close was on September 22 at 1,071.66. A resistance breakout or bounce down in the SPX will likely be determined by companies releasing their earnings and sharing their revenue and earnings guidance for Q4 in their respective conference calls. INTC will release on Tuesday, GS and JPM on Wednesday and BAC, GOOG and IBM on Thursday. (click image to enlarge) Guidance: The intermediate term trend is still up as the support bounce moved into area of September resistance on Friday. Semiconductor stocks were strong on Friday and BIDU had a strong follow through after its horizontal breakout. The indexes did pause on Friday as price action did stay above short term support levels before pushing to a higher close. INTC earnings on Tuesday will likely set the tone for resistance breakout or pull back. The strong move in the semiconductor stocks on Friday suggest that big money believes they are going to hear good news on Tuesday, but remember they don’t know. That's why stocks gap, because they hear better or worse news than they expected. Remember RIMM? Their buying reflects their opinion as of Friday. Many stocks are near resistance so trade your positions accordingly. Continue to take entry signals as they occur and follow your rules. Breakout: FCX, JOYG, AMZN, JCG, AAPL, PCLN, BIDU, GOOG, ISRG, NTAP Potential Breakout Setups: CAM, BUCY, HANS, FLS, APOL, AKAM, AMX, CAT, AGU, NWSA, STT, AXP Pulling Back: Potential C Patterns: C Pattern Breakout: ADSK Lower Close in Support Bounce: LVS, WYNN, BDK, WLT, DE, X, FWLT, HOLX, FSLR Flag Setups and Bounces in Progress: XLNX, ZION, ADBE, FLIR, DD, FAST, SPG, MA, V, DOW, JCI, BAC, INTC, WHR, MRVL, TXN Potential Down Trend Setups: JEC, RIMM, AGCO, MON, MYGN, ORCL AAPL +1.20 QCOM +0.25 GOOG +2.07 BIDU +14.40 NDX 100 stocks stronger than the NDX: MRVL, NTAP, LRCX, STX, ALTR, CERN, BRCM, LLTC, BIDU, KLAC, MXIM, LBTYA, XLNX, FAST, CHP, ADSK, ILMN, INTU, CA, VRTX, JNPR, ESRX, CSCO, INTC, CEPH, ISRG, CTXS, JOYG, JOYG, CHKP and ADBE. Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PETS, PCLN, TDG, PCP, CLB, ESRX, NTLS, NIHD, K, FLS, GXDX, BAP, GME, WRC, BIDU, HDB, JW.A, ATW, EZPW, JOYG, TRLG, GPRO, PPD, DECK, VPRT, AMZN, GMCR, ACN, SLGN, FSLR, NFLX, HANS, DV, ESI, STRA, MCD, CPLA, HLF, SWN, AFAM, AMED, CAM, GES, ICE, UYG, AMX, APEI, BLUD, EBAY, FAS, MUR, SPWRA, CHL, BYI, WAB, URE Moving Above 30 DMA = 9 ALGT, DLTR, MHS, WCG, GR, SNA, SNHY, USD, PWRD Moving Below 30 DMA = 0 Staying Below 30 DMA PPD, FAZ, BDX, BIIB, BKC, GILD, JCOM, JOSB, RCI, VAR, FUQI, JEC, X, CBST, RBN, RIMM, DLB, PSYS, MYGN, PWR, SYNA, MOS, ORCL, WMT, MON Intermediate Term Market Trend: Up Short Term Market Trend: Up