SPX Breaks 1,056 Falls to 1,029 Support Area...

DJIA -203.00 -2.09% SPX -27.23 -2.58% COMPQ -64.94 -3.06% RUT -20.53 -3.40% Exchange NYSE NASD Advancing 504 476 Declining 2,526 2,233 Oil 70.82 +0.21 Gold 999.50 -8.50 SOX 309.97 -15.78 VIX 28.27 +2.66 The VIX moved up and did confirm the move down in the SPX on Thursday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLP -0.90%...XLV -1.43%...XLU -1.70% Weakest Sectors: XLI -4.42%...XLB -3.91%...XLE -3.12% Two of nine sectors moved higher on Wednesday. Technology and Consumer Staples were stronger than the SPX -2.58%. Financial stocks stronger than XLF -4.42%: AOC, MMC, ALL, TRV, CB, NTRS, GS, SCHW, MS, USB, ICE, BK, TROW, RF, STT, BAC, AXP and IVZ. Tech stocks stronger than XLK -2.97%: DELL, VZ, ADP, MA, IBM, T, EBAY, GOOG, CSCO, ORCL, YHOO, GLW, AAPL, ADBE, HPQ and AMT. Sector Watch Up Trending: XLK, XLB, XLY, XLV Horizontal Breakout: XLF Sideways: XLE, XLP, XLI, XLU Down Trending: Key Resistance Levels: 1,044 = October Horizontal Old Resistance 1,056 = Sep 25 R1 level 1,061 = Sep 16 S1 Level 1,075 = 875 Breakout Chart Target 1,100 = September 2008 Old Support Key Support Levels 1,025 = 950 Breakout Chart Target 1,017 = Aug 27 Support Low 1,007 = November 2008 Horizontal Resistance One day after moving 58 points to close down -3.53 points the SPX slide straight down to close -27.23 lower. The SPX gave back on Thursday all but 9 points of September’s 37 point gain. In a classic break of support falling to the next support area, the SPX broke the 1,056 area fell to and broke 1,044 and then fell to the 1,025 area where the SPX closed at 1,029.85. Thursday’s sell off is very similar to sell offs that occurred on March 20 and 30, April 20, May 13 and 21, June 15 and 22, July 2, August 17 and September 1. This week’s price action looks very similar to the price action from June 15 through June 22 just before July’s earning season that sent the market higher. (click image to enlarge) The Employment Report will be out Friday morning before the open. Needless to say a negative surprise could send the SPX lower in the morning, whereas a positive surprise could be the catalyst for a support bounce. Oil prices rose 21 cents and V rose a one cent. Guidance: The intermediate term trend is still up while the short term trend is down with strong downward momentum on Thursday. Watch for the Employment Report on Friday and the market's reaction and watch for a bounce or break at support. Continue to trade the trend of the stock charts you are trading. Potential Breakout Setups: Breakout: ISRG Pulling Back: DOW, JOYG, PCLN, HANS, AMZN, APOL, WYNN, BA, AKAM, FSLR Potential C Patterns: ADSK C Pattern Breakout: Flag Setups and Bounces in Progress: WHR, BUCY, FWLT, BIDU, CAT, FLS, FLIR Closed Below 30 DMA: MRVL, XLNX, JCG, DE, BDK, JEC, JCI, AGU, HOLX, NWSA, FWLT, DD, X, FAST, STT, SPG, ZION, AXP, ADBE, BAC, INTC, WLT Potential Down Trend Setups: TXN, RIMM, AGCO, AMX, MON, MYGN, ORCL, MA, V AAPL -4.49 QCOM -2.28 GOOG -8.65 BIDU -19.03 NDX 100 stocks stronger than the NDX: DISH, DTV, RYAAY, RIMM, DELL, ADP, ORLY, HSIC, JBHT, COST, CHKP, EBAY, PPDI, CELG, GOOG, APOL, SRCL, PDCO, ESRX and CSCO. Stocks to Watch on Friday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PETS, EBAY, PCLN, TDG, PCP, CLB, GES, ESRX, NTLS, ICE, NIHD, K, FLS, GXDX, BAP, GME, PWRD, WRC, BIDU, HDB, JW.A, ATW, EZPW, JOYG, TRLG, EBAY, GPRO, PPD, DECK, VPRT, AMZN, GMCR, ACN, SPWRA, SLGN, AFAM, FSLR, NFLX, HANS, DV, AMED, ESI, STRA, MCD, CPLA, HLF, ICE, Moving Above 30 DMA = 1 FAZ Moving Below 30 DMA = 17 APEI, BDX, BIIB, BKC, CAM, GILD, JCOM, JOSB, RCI, SWN, VAR, SNHY, FAS, UYG, USD, URE, FUQI Staying Below 30 DMA JEC, MHS, WAB, X, CBST, RBN, WCG, DLTR, RIMM, ALGT, CHL, DLB, MUR, PSYS, BLUD, GR, MYGN, PWR, SNA, SYNA, MOS, AMX, BYI, ORCL, WMT, MON Intermediate Term Market Trend: DJIA = Neutral, Nasdaq, RUT, SPX = Up Short Term Market Trend: Down