SPX...Yellow Alert Changes to Red...

DJIA - 104.22 -1.05% SP500 - 12.65 -1.17% COMPQ - 12.62 -0.59% Russell 2000 - 7.18 -1.19% Exchange NYSE NASD Advancing 714 786 Declining 2,323 1,933 Oil $78.68 -1.82 Gold $1,042.80 -13.00 SOX 317.44 +1.03 VIX 24.31 +2.04 The VIX moved up and did confirm the move down in the SPX on Monday. The SOX moved up and did NOT confirm the move up in the COMPQ. Strongest Sectors: XLY -0.60%...XLK -0.66%...XLP -0.77% Weakest Sectors: XLF -2.58%...XLB -2.57%...XLE -1.65% All nine sectors moved lower on Monday. Consumer Discretionary, Technology, Consumer Staples, Industrials and Healthcare were stronger than the SPX -1.17%. Financial stocks stronger than XLF -2.58%: AXP, AOC, CME, MMC, SPG, TRV, GO, MS, SCHW, TROW, ICE, CB and NTRS. Tech stocks stronger than XLK -0.66%: MSFT, TXN, INTC, GOOG, ADP, QCOM, AMAT, IBM and ORCL. 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, INDU and COMPQ broke below the low of their high day. broke AMZN, BUCY, NFLX, DECK, WHR and MSFT which moved higher on Friday from better than expected earnings continued their moves up on Monday.. Well the probability, we wrote about in Friday’s post, that the current horizontal flag pattern will follow the pattern of the prior four horizontal flag patterns since June, and break support and move down for one or more days happened on Monday. We hope that short term traders took advantage today. Even though the NDX moved lower on Monday, the number of rising stocks increased from 11 on Friday to 27 on Monday. The NDX was relatively stronger than the other indices today down just -0.39%. Monday after the close BIDU reported better than expected earnings but lowered their Q4 guidance by more than 10% due to the introduction of a new system to sell search based advertising which is expected to be in service December 1. The new system is expected to improve business over the long term. BIDU dropped $56.98 or -13.16%. Guidance: The intermediate term trend is up while the short term trend is down breaking below the support its horizontal flag pattern. The broad indices broke support and moved towards its next support level. The Yellow Alert on the SPX, COMPQ and INDU turned to Red which is an exit signal for some short term traders when the indices broke the low of the high day. The RUT continued its short term down trend. Continue to trade the chart of the stocks you watch and follow your rules. Breakout: AMZN, WHR, DE, FLIR, PCLN, JOYG, BUCY, AKAM, GOOG Potential Breakout Setups: AXP, HANS, APOL Pulling Back: BIDU, MA, AAPL, FLS, CAM, FCX, JCG, ORCL, BDK, NKE, DOW, DD, WLT, V, AMX, NWSA, ADBE Potential C Patterns: C Pattern Breakout: Lower Close in Support Bounce: JEC, JCI, NTAP, SPG, ZION, FAST, FWLT, X Flag Setups and Bounces in Progress: ADSK, AGCO, CAT, XLNX, TXN, POT, FSLR, INTC, AGU Potential Down Trend Setups: BAC, MRVL, HOLX, STT, RIMM, MYGN, MON, LVS, WYNN AAPL -1.46 QCOM -0.02 GOOG +0.52 BIDU -2.34 NDX 100 stocks stronger than the NDX include: AMZN, MRVL, PAYX, MSFT, IACI, FSLR, GRMN, WYNN, CTAS, BIIB, EXPE, STX, LLTC, URBN, HANS, PCAR, FISV, ILMN, BBBY, XLNX, SPLS, INTC, INTU, ALTR, GOOG, SHLD, ADP and QCOM. Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PCLN, CLB, K, FLS, GXDX, BIDU, HDB, JW.A, ATW, EZPW, JOYG, TRLG, GPRO, PPD, DECK, VPRT, AMZN, GMCR, ACN, SLGN, FSLR, NFLX, HANS, DV, STRA, MCD, CPLA, HLF, SWN, AFAM, CAM, GES, ICE, AMX, MUR, BYI, MHS, SNA, BKC, DLB, WAB, MON, X, ORCL, FSLR, ALGT, RBN, JEC, VAR, GR, PWRD Moving Above 30 DMA = 1 AMED, FAZ Moving Below 30 DMA = 9 APEI, ESRX, MOS, PCP, PWR, RCI, WRC, NIHD, WMT Staying Below 30 DMA BLUD, 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