SPX Reaches 1,061 Support...

DJIA + 14.21 +0.14% SP500 - 3.54 -0.33% COMPQ - 25.76 -1.20% Russell 2000 - 6.69 -1.13% Exchange NYSE NASD Advancing 1,053 889 Declining 1,983 1,822 Oil $79.55 +0.87 Gold $1,035.40 -7.40 SOX 309.44 -8.00 VIX 24.83 +0.52 The VIX moved up and did confirm the move down in the SPX on Tuesday. The SOX moved down and did confirm the move up in the COMPQ. Strongest Sectors: XLE +0.89%...XLV +0.42%...XLP +0.08% Weakest Sectors: XLY -1.71%...XLI -1.36%...XLB -0.81% All nine sectors moved lower on Monday. Consumer Discretionary, Technology, Consumer Staples, Industrials and Healthcare were stronger than the SPX -0.33%. Financial stocks stronger than XLF -0.75%: AXP, CB, USB, BAC, JPM, C, PNC, AOC, WFC, SCHW, TRV, GS, ICE, MMC, RF and NTRS. Tech stocks stronger than XLK -0.52%: VZ, T, QCOME, IBM, TXN, MA, MSFT, ADP and INTC. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,075 = 875 Breakout Chart Target 1,100 = September 2008 Old Support 1,133 = Mid September 2008 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 The SPX fell to its 1,061 support level and formed a spinning top. The INDU formed a spinning top and bullish harami as it closed higher on Tuesday. The COMPQ and RUT formed a large black candle which is the third down day in a three black crows pattern. The COMPQ was heavily impacted by 11% drops in both BIDU and WYNN. Pull backs in up trending stocks GOOG, AAPL, FSLR, AMZN and CERN also added to the COMPQ move down on Tuesday. The bullish harami in the INDU and the spinning top in the SPX are potential short term trend reversal setups. Three black crows often precede a short term rally. Guidance: The intermediate term trend is up while the short term trend is down. The broad indices are in bull flag patterns. Downward momentum slowed in the INDU and SPX on Tuesday. It is too early to say the pull back is over, but it is time to start watching for a potential support bounce. Watch for a move above 1,073 on the SPX and 9,920 on the INDU to indicate momentum is beginning to move up. On the COMPQ a move above 2,131 and 591 on the RUT is the minimum level to indicate momentum beginning to shift on Wednesday. Continue to trade the chart of the stocks you watch and follow your rules. Breakout: AMZN, FLIR Potential Breakout Setups: AXP, HANS Pulling Back: BUCY, WHR, DE, PCLN, GOOG, APOL, MA, AAPL, FLS, CAM, JCG, ORCL, BDK, DOW, DD, WLT, V, ADBE Potential C Patterns: C Pattern Breakout: Lower Close in Support Bounce: JEC, JCI, NTAP, SPG, ZION, FAST, FWLT Flag Setups and Bounces in Progress: NKE, FCX, AKAM, JOYG, NWSA, AMX, ADSK, AGCO, CAT, XLNX, TXN, POT, FSLR, INTC, AGU Potential Down Trend Setups: X, BIDU, BAC, MRVL, HOLX, STT, RIMM, MYGN, MON, LVS, WYNN AAPL -5.11 QCOM +0.32 GOOG -5.92 BIDU -49.31 NDX 100 stocks stronger than the NDX include: VRTX, CEPH, SRCL, LIFE, ILMN, PPDI, ESRX, BIIB, LBTYA, QCOM, FISV, GENZ, FLIR, AMGN, XRAY, SIAL, DISH, INTU, PDCO, CTAS, HSIC, MICC, PAYX, CTSH, MSFT and APOL. Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PCLN, CLB, K, FLS, GXDX, BIDU, JW.A, ATW, EZPW, JOYG, TRLG, GPRO, PPD, DECK, VPRT, AMZN, ACN, SLGN, FSLR, NFLX, HANS, DV, STRA, MCD, CPLA, HLF, SWN, AFAM, GES, ICE, MUR, BYI, MHS, SNA, BKC, DLB, WAB, MON, X, ORCL, FSLR, ALGT, RBN, JEC, VAR, GR, PWRD, FAZ Moving Above 30 DMA = 3 BLUD, ESRX, RCI Moving Below 30 DMA = 5 AMED, AMX, CAM, HDB, GMCR Staying Below 30 DMA APEI, MOS, PCP, PWR, WRC, NIHD, WMT, JOSB, TDG, SPWRA, FAS, UYG, ESI, EBAY, BAP, CHL, GILD, URE, USD, DLTR, GME, SNHY, URE, PETS, WCG, MON, X, PSYS, NTLS, PPD, BDX, BIIB, JCOM, FUQI, CBST, RIMM, MYGN, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Down