SPX Back at Tuesday's Support...

DJIA - 93.79 -0.91% SP500 - 11.27 -1.03% COMPQ - 17.88 -0.83% Russell 2000 - 12.39 -2.09% Exchange NYSE NASD Advancing 633 649 Declining 2,401 2,050 Oil $76.94 -2.19 Gold $1,106.60 -7.90 SOX 314.00 -1.76 VIX 24.24 +1.20 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: XLB -0.47%...XLV -0.57%...XLP -0.60% Weakest Sectors: XLE -2.20%...XLF -1.87%...XLU -1.39% All nine sectors moved lower on Thursday. Materials, Healthcare, Consumer Staples and Technology were stronger than the SPX -1.03%. Financial stocks stronger than XLF -1.87%: CME, AOC, ICE, SCHW, SPG, PNC, IVZ, KEY, GS, BK, TROW, RF, CB, AXP, MMC, USB, ALL and ETF FAZ. Tech stocks stronger than XLK -0.73%: GLW, MSFT, ORCL, EBAY, QCOM, TXN, ADP, MA, GOOG, YHOO, T, HPW, AAPL and IBM. 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 potential shooting star in the SPX on Wednesday was confirmed on Thursday with a close below the body of the shooting star. The SPX closed at Tuesday’s low which is the bottom of the horizontal range we had drawn in on Wednesday’s SPX chart and above Monday’s 1,082 S1 level. Sellers were the net winners on Thursday. As of Wednesday what technically was not on the chart was sellers “throwing the buyers to the mat” with a move from resistance to support which had occurred in the past five horizontal channels. Well, it happened today. Wednesday I gave the edge slightly to the up trend side. Thursday’s price action changes that as this channel now has similar downward price action like the last five horizontal channels. This gives the edge to a pull back scenario similar to the last five channels. We’ll watch for either more swings between support and resistance or a break of support on Friday. (click image to enlarge) Guidance: The intermediate term trend is up and Thursday’s price action turned the short term trend neutral. The SPX pulled back from its 1,100 resistance area to close at 1,087.24 which is at Tuesday’s low. While more price action between support and resistance may occur as in the previous five horizontal flags, you must begin NOW to watch for a break of support below Tuesday’s low and Monday’s S1 level. Thursday was a lower high and a lower low which broke the low of the high day and turned Wednesday’s Yellow Alert to Red for short term traders who use this signal. Short term traders who use the break of the horizontal channel or a break of the recent S1 will look for 5 more points to the downside for their signal. Focus on and trade the chart of the stocks you watch and follow your rules. AAPL -1.26 QCOM +0.19 GOOG -2.71 BIDU -3.36 NDX 100 stocks stronger than the NDX include: STX, URBN, WYNN, CMCSA, GRMN, MSFT, AMGN, ORCL, EBAY, GENZ, ATVI, AMZN, QCOM, DISH, BIIB, PAYX, HSIC, SHLD, CTSH, MICC, SBUX, ADP and PPDI. Stocks to Watch on Friday 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, CTSH, HLF, SNA, AFAM, AMX, GR, SNHY, SYNA, WMT, AAPL, BLUD, CAM, DLTR, DV, GILD, HDB, MOS, ORCL, RBN, WAB, PWRD, BIDU, EZPW, GES, PCLN, FLS, GXDX, PCP, URE, MON, USD Moving Above 30 DMA = 2 BIIB, EBAY Moving Below 30 DMA = 10 CLB, CPLA, GMCR, JCOM, MUR, PPD, RIMM, WRC, FAS, UYG Staying Below 30 DMA SWN, JEC, DV, FAZ, BKC, HANS, TDG, GPRO, STRA, TRLG, AMED, FSLR, APEI, PWR, NIHD, JOSB, SPWRA, ESI, BAP, CHL, GME, PETS, X, PSYS, NTLS, FUQI, CBST, MYGN Intermediate Term Market Trend: Up Short Term Market Trend: Neutral