SPX Pulls Back with Financials...

DJIA - 92.12 -0.92% SP500 - 9.66 -0.89% COMPQ - 12.74 -0.59% Russell 2000 - 8.30 -1.35% Exchange NYSE NASD Advancing 999 890 Declining 2,038 1,825 Oil $81.37 +2.25 Gold $1,063.90 +5.90 SOX 322.67 -4.20 VIX 22.22 +1.32 The VIX moved up and did confirm the move down in the SPX on Wednesday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLU +0.13%...XLK +0.05%...XLE -0.27% Weakest Sectors: XLF -1.91%...XLV -1.32%...XLY -1.30% Seven of nine sectors moved lower on Wednesday. Utilities, Technology, Energy, Industrials and Consumer Staples were stronger than the SPX -0.89%. Financial stocks stronger than XLF -1.91%: MS, USB, ICE, PNC, TROW, CME, C, SPG, CB, MET, AXP, TRV, MMC, AOC, PRU and RF. Tech stocks stronger than XLK +0.05%: AAPL, YHOO, SYMC, VZ, MSFT, MA, ADP and QCOM. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,100 = September 2008 Old Support 1,133 = Mid September 2008 Support Key Support Levels 1,075 = 875 Breakout Chart Target 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 spent most of the day higher until an analyst downgrade of WFC from neutral to sell. During the last 45 minutes of trading, WFC fell from 30.25 to 28.90. The SPX fell 16 points in the last 45 minutes. CREE, SNDK and YHOO which had positive earnings after the close on Tuesday, showed strong stocks gains on Wednesday as did AAPL still strong from earnings Monday after the close. SNDK +9.54%, YHOO +2.85% and AAPL +3.10% had big gains even after pulling back from their high. CREE +11.49% closed near it high of the day. The SPX which touched 1,101.36 closed at the low end of it horizontal flag as did the COMPQ and INDU. The RUT clearly broke the low of the high day. After the close EBAY beat estimates by 1 cent but lowered its Q4 guidance to 0.38 to 0.40 against the street estimate of 0.40. Shares are down $1.13 or -4.51%. Wednesday’s Key Earnings: Symbol Earnings versus Estimates BA -2.22 vs. -2.12 ATI 0.01 vs. 0.03 WFC 0.56 vs. 0.37 MS 0.38 vs. 0.27 AMGN 1.49 vs. 1.27 EBAY 0.38 vs. 0.37 GENZ 0.31 vs. 0.44 AMR -0.93 vs. -0.95 LRCX 0.03 vs. -0.08 Thursday’s Key Earnings: T, BDK, BMY, CELG, CNX, DHR, DO, EMC, GR, MCD, MMM, MRK, PNC, RTN, SGP, DOW, TRV, UNP, UPS, AMZN, AXP, BRCM, DECK, NFLX, NIHD, POT, ALK, BUCY, BNI, CA, CMG, JNPR, SYNA, LCC, WDC Guidance: The intermediate term trend is up. The SPX bounced from resistance down to support. This is very similar to the price action in the last four horizontal flags since June that we illustrated in Tuesday’s post. (click image to enlarge) Wednesday is the high day in the SPX, COMPQ and INDU, each closing near its low of the day. The RUT did close below Monday’s low giving a short term exit signal. The SPX, COMPQ and INDU are on Yellow Alert. Look for a break below Wednesday’s low for a short term exit signal. Check the charts you are trading for potential short term exit signals. Follow your rules. Breakout: DE, FLIR, PCLN, CAT, ADSK, AAPL, JOYG, BUCY, FLS, AKAM, CAM, FCX, JCG, GOOG, NWSA Potential Breakout Setups: POT, ORCL, WLT, WHR, APOL, AXP, MA, V Pulling Back: DOW, ADBE, DD, INTC, AMZN, HANS, BDK, NKE, BIDU, AGU, AMX, BAC Potential C Patterns: C Pattern Breakout: Lower Close in Support Bounce: SPG, ZION, FWLT, XLNX, MRVL, FAST, X, TXN Flag Setups and Bounces in Progress: JEC, JCI, NTAP, FSLR, AGCO Potential Down Trend Setups: HOLX, STT, RIMM, MYGN, MON, LVS, WYNN AAPL +6.16 QCOM +0.10 GOOG -0.62 BIDU -2.80 NDX 100 stocks stronger than the NDX include: ADSK, AAPL, YHOO, FLIR, SYMC, AMGN, PPDI, GRMN, NIHD, PCAR, EXPE, STLD, JOYG, MSFT, SRCL, JNPR, LIFE, ADP, QCOM, FISV, PDCO, PAYX, CA, CEPH, INTU, NTAP, GOOG, EBAY VRSN and CHKP Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PCLN, TDG, CLB, ESRX, NIHD, K, FLS, GXDX, 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, CAM, GES, ICE, AMX, APEI, BLUD, EBAY, MUR, SPWRA, BYI, MHS, SNA, BKC, WMT, DLB, MOS, WAB, MON, X, ORCL, FSLR, ALGT Moving Above 30 DMA = 2 RBN, PWRD Moving Below 30 DMA = 11 AMED, BAP, CHL, FAS, GILD, GR, JOSB, URE, USD, UYG, WRC Staying Below 30 DMA DLTR, GME, JEC, PCP, SNHY, URE, PETS, WCG, MON, X, PSYS, NTLS, PPD, FAZ, BDX, BIIB, JCOM, RCI, VAR, FUQI, CBST, RIMM, MYGN, PWR, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Neutral