SPX Bounces off Support Again...

DJIA + 34.92 +0.34% SP500 + 4.14 +0.38% COMPQ + 6.16 +0.29% Russell 2000 + 2.52 +0.44% Exchange NYSE NASD Advancing 1,752 1,390 Declining 1,285 1,333 Oil $75.80 -0.25 Gold $1,180.80 +6.60 SOX 310.05 +0.23 VIX 24.74 -0.23 The VIX moved down and did confirm the move up in the SPX on Monday. The SOX moved up and did confirm the move up in the COMPQ. Strongest Sectors: XLF +2.66%...XLU +0.85%...XLB +0.46% Weakest Sectors: XLP -0.93%...XLV -0.36%...XLE -0.35% Five of nine sectors moved higher on Monday. Financials, Utilities and Materials were stronger than the SPX +0.38%. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,105 - 1,110 = October High 1,025 - 1,133 = 1,075 BO chart target - Sep 08 Low Key Support Levels 1,087 = Nov 10 Channel low 1,082 = Nov 9 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 Once again buyers appeared atthe SPX 1,086 the support level of the three week old horizontal price channel. The Dubai news is factored into the market and in retrospect you can once again see the news that seemed so dire Friday morning and likely to kill an intermediate term trend (at least in everyone’s imagination) has once again evaporated after the typical one impact. Guidance: The SPX and INDU bounced off support on Monday and moved towards the middle of their recent horizontal price channels. The intermediate term is up and the short term trend is still net neutral. Traders that were reluctant to short this market before Thanksgiving were still not motivated to short and so the horizontal price channel begins what could be a fourth week. As we observed last week, buyers are stepping in at 1,086 area support and sellers take over at the 1,110 area resistance in this horizontal channel. Many stocks like AMZN, PCLN, EBAY, AMLN, DE and X started to move higher on Monday. Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules. AAPL -0.68 QCOM +0.02 GOOG +3.24 BIDU -5.98 NDX 100 stocks stronger than the NDX include: EBAY, AMZN, LINTA, WYNN, APOL, SBUX, NVDA, JNPR, STLD, RYAAY, SRCL, EXPE, ILMN, CTSH, BBBY, CELG, CTXS, BRCM, INFY, MCHP, MSFT, VRSN, ALTR, AHNS, GOOG, SIAL and INTC. Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA K, JW.A, AMZN, SLGN, NFLX, MCD, DLB, RCI, ESRX, MHS, WCG, ALGT, BDX, VAR, ACN, CTSH, HLF, AFAM, AMX, GR, SNHY, SYNA, WMT, AAPL, DLTR, GILD, HDB, ORCL, WAB, BIDU, EZPW, PCLN, GXDX, PCP, MON, MOS, TDG, X, BIIB, NTLS, AMX, PETS, NIHD, VPRT Moving Above 30 DMA = 4 ICE, PSYS, EBAY, URE Moving Below 30 DMA = 3 BLUD, GME, FAZ Staying Below 30 DMA BAP, BKC, BYI, CHL, CPLA, DECK, FLS, GPRO, JOYG, USD, DV, RBN, UYG, SLGN, WAB, ATW, CAM, CLB, SNA, FAS, PWRD, PPD, GES, JEC, JOSB, WRC, GMCR, JCOM, MUR, RIMM, SWN, HANS, STRA, TRLG, AMED, FSLR, APEI, PWR, SPWRA, ESI, FUQI, CBST, MYGN Intermediate Term Market Trend: Up Short Term Market Trend: Neutral