PCLN Blasts Off as SPX Pauses...

DJIA + 20.03 +0.20% SP500 - 0.07 -0.01% COMPQ - 2.98 -0.14% Russell 2000 - 5.38 -0.91% Exchange NYSE NASD Advancing 1,286 893 Declining 1,755 1,819 Oil $78.30 -1.13 Gold $1,102.50 +1.10 SOX 311.52 +0.26 VIX 22.84 -0.31 The VIX moved down and did not confirm the move down in the SPX on Tuesday. The SOX moved up and did not confirm the move down in the COMPQ. In effective the SPX and SOX were unchanged so the divergence is not meaningful in this instance. Strongest Sectors: XLV +0.67%...XLU +0.48%...XLY +0.35% Weakest Sectors: XLI -0.58%...XLF -0.34%...XLK -0.05% Five of nine sectors moved higher on Tuesday. Healthcare, Utilities, Consumer Discretionary, Materials and Energy were stronger than the SPX -0.01%. Financial stocks stronger than XLF -0.34%: BAC, AXP, MMC, TRV, AFL, GS, NTRS and C. Tech stocks stronger than XLK -0.05%: TXN, GOOG, AAPL, IBM, EBAY, VZ, ADP, ADBE, EMC, INTC, AMAT, YHOO, T, MSFT and GLW. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,100 = October High 1,133 = Sep 08 Low Key Support Levels 1,082 = Monday S1 level 1,075 = 875 Breakout Chart Target 1,061 = Sep 16 S1 level 1,056 = Sep 25 R1 level 1,044 = October Horizontal Old Resistance The SPX traded in a narrow nine point range on Tuesday after rising 23 points on Monday. Tuesday trading stayed above 1,082 Monday’s S1 level as the SPX closed near unchanged. PCLN rose $30.49 or +17.55% after a better than expected earnings on Monday. The strong move pulled key tech stocks like AAPL, GOOG, BIDU and AMZN higher. Leading stocks ADBE, ADSK, AKAM BUCY and GOOG held above their horizontal resistance breakout, while CREE and NTAP closed at their horizontal resistance after modes a modest pull back on Tuesday. Key Reversal or Bear Setup? (click image to enlarge) Guidance: The intermediate term trend is up with short term momentum pausing on Tuesday. Today’s pause stayed above Monday’s S1 level which is a bullish indication. Tuesday was another higher high and higher low and the high day of the short term trend. The SPX is near its 1,100 resistance area which is a key pivot point on the chart. While the SPX can stay near this level for several trading days, it will either break out with a likely move to the 1,025 to 1,033 area, or pull back and potentially form a higher low. You must begin NOW to watch for signs of a breakout or pull back and be prepared to trade accordingly. Charts that are moving to new highs like the ones listed above continue to offer up trend potential. Focus on and trade the chart of the stocks you watch and follow your rules. AAPL +1.52 QCOM -0.40 GOOG +4.25 BIDU +2.25 NDX 100 stocks stronger than the NDX include: RIMM, HOLX, AMZN, GRMN, LBTYA, WCRX, DTV, HSIC, VRTX, EXPE, BRCM, DISH, SBUX, MRVL, FLEX, LIFE, STX, ALTR, MICC, ISRG, NWSA, AKAM, WYNN, GOOG, AAPL, SHLD, PDCO, EBAY, GENZ, MCHP, BIDU, GILD, XLNX, ADP and ADBE. Stocks to Watch on Wednesday 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, CTSH, HLF, SNA, AFAM, AMX, GR, SNHY, SYNA, WMT, AAPL, BLUD, CAM, CPLA, DLTR, DV, GILD, HDB, MOS, ORCL, RBN, WAB, PWRD, BIDU, EZPW, GES, JCOM, PCLN, FLS, GXDX, MUR, PCP, SWN, WRC, URE Moving Above 30 DMA = 2 GMCR, MON Moving Below 30 DMA = 1 JEC Staying Below 30 DMA DV, FAZ, BKC, HANS, TDG, GPRO, STRA, TRLG, AMED, FSLR, APEI, PWR, NIHD, JOSB, SPWRA, FAS, UYG, ESI, EBAY, BAP, CHL, USD, GME, PETS, X, PSYS, NTLS, PPD, BIIB, FUQI, CBST, RIMM, MYGN Intermediate Term Market Trend: Up Short Term Market Trend: Up