AMZN Breakout Leads Nasdaq Higher...

DJIA + 17.46 +0.17% SP500 + 2.67 +0.25% COMPQ + 7.12 +0.34% Russell 2000 - 0.80 -0.14% Exchange NYSE NASD Advancing 1,538 1,261 Declining 1,446 1,446 Oil $77.43 -2.19 Gold $1,095.70 +6.70 SOX 301.76 -1.20 VIX 24.19 -1.24 The VIX moved down and did confirm the move up in the SPX on Friday. The SOX moved down and did NOT confirm the move up in the COMPQ. Strongest Sectors: XLI +0.90%...XLY +0.90%...XLB +0.85% Weakest Sectors: XLF -0.42%...XLE -0.26%...XLU -0.10% Six of nine sectors moved higher on Friday. Industrials, Consumer Discretionary, Materials, Healthcare and Consumer Staples were stronger than the SPX +0.25%. Financial stocks stronger than XLF -0.42%: KEY, TRV, PRU, PNC, ICE, IVZ, CB, BK, AOC, MS, CME, C, TROW and ALL. Tech stocks stronger than XLK +0.14%: MA, VZ, IBM, HPQ, ORCL, GOOG, EBAY, YHOO, INTC, GLW, ADP, MSFT, AAPL and AMT. 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 = October High 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 bounced off of support at 1,029 on Monday and had a bull flag breakout on Wednesday to early Thursday. The SPX rose 19 points on Thursday. On Friday the SPX pulled back within two points of Thursday’s S1 area and bounced higher. Buyers apparently believed there were good reasons to be buying stocks even though the Unemployment rate hit 10.2%. (click image to enlarge) Look at these leading stocks getting stronger: AMZN, ESRX, COST, SRCL (click image to enlarge) ADP, LIFE, CSTSH, VRTX (click image to enlarge) CHKP, DTV, AKAM, SBUX (click image to enlarge) Look at these C Pattern Setups: DISH, CTAS, CTXS, NVDA, (not shown = FWLT, INFY) (click image to enlarge) Guidance: The intermediate term trend is up and short term momentum which accelerated on Thursday and slowed on Friday while staying above Thursday’s S1 level is also up. Pauses in an intermediate and short term up trend that stay above the S1 level of a prior large candle day are generally bullish indications. Essentially buyers allowed short term profit takers out without the short term trend turning down. Friday formed a higher high and higher low. November’s first week bounce retraced half of the channel (1,100 to 1,029) from October’s high. Look for the support bounce to continue with SPX short term resistance at 1,075. Charts that are breaking to new highs like the ones in this post or with strong support bounces offer up trend potential. Continue to focus on and trade the chart of the stocks you watch and follow your rules. Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA K, JW.A, DECK, VPRT, AMZN, SLGN, NFLX, MCD, ICE, DLB, FAZ, RCI, ESRX, MHS, WCG, ALGT, BDX, BYI, VAR, ACN, JOYG, ATW, CLB, HLF, SNA, AFAM, AMX, GR, SNHY, SYNA, WMT, AAPL, BLUD, CAM, CPLA, DLTR, DV, GILD, HDB, MOS, ORCL, RBN, WAB, PWRD Moving Above 30 DMA = 5 BIDU, EZPW, GES, JCOM, PCLN Moving Below 30 DMA = 5 BKC, FLS, HANS, SWN, TDG Staying Below 30 DMA MUR, GXDX, CTSH, GPRO, JEC, STRA, TRLG, AMED, FSLR, GMCR, APEI, PCP, PWR, WRC, NIHD, JOSB, SPWRA, FAS, UYG, ESI, EBAY, BAP, CHL, URE, USD, GME, URE, PETS, MON, X, PSYS, NTLS, PPD, BIIB, FUQI, CBST, RIMM, MYGN Intermediate Term Market Trend: Up Short Term Market Trend: Up