SPX Breaks 1,075 Resistance...Moves Toward 1,100...

DJIA + 203.52 +2.03% SP500 + 23.67 +2.22% COMPQ + 41.62 +1.97% Russell 2000 + 11.96 +2.06% Exchange NYSE NASD Advancing 2,549 1,893 Declining 496 831 Oil $79.80 +2.37 Gold $1,101.60 +5.90 SOX 311.26 +9.50 VIX 23.15 -1.04 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 +3.56%...XLB +3.26%...XLI +2.53% Weakest Sectors: XLP +1.64%...XLV +1.68%...XLU +1.80% All nine sectors moved higher on Monday. Financials, Materials, Industrials and Technology were stronger than the SPX +2.22%. Financial stocks stronger than XLF +3.56%: PRU, STT, SPG, AXP, BAC, WFC, MET, RF, MS, AFL, SCHW, ZION and ETFs UYG and FAS. Tech stocks stronger than XLK +2.31%: ADBE, AMAT, DELL, AAPL, GLW, INTC, AMT and TXN. 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 1,075 = 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 broke through its 1,075 resistance and surged towards its October high of 1,100. Every sector moved higher and advancing stocks led declining stocks by 5 to 1 on the NYSE and 2 to 1 on the NASDAQ. This was a broad based rally. Many leading stocks broke through horizontal resistance: ADBE, ADSK, AKAM, BUCY, CREE, GOOG and NTAP. PCLN reported strong earnings after the close and rose more than $14 in after-hours trading. Here are four more C Pattern stocks to go with the six in Friday’s post. (click image to enlarge) Guidance: The intermediate term trend is up with short term momentum reaccelerating on Monday. Friday’s pause that stayed above the S1 level of a Thursday’s large candle did turn out to be a very bullish indication as we mentioned in Friday’s post. Monday was another higher high and higher low. November’s support bounce continued, now retracing 90% of the pull back (1,100 to 1,029) from October’s high. Look for the support bounce to continue with SPX short term support now at 1,075. The SPX closed near its high and Monday’s S1 level is 1,082. A pull back that stays above this short term support would be a bullish indication. SPX 1,100 is the next significant support area from which the current move can pivot up or down. A successful break out would likely move to the next resistance level at 1,133. Charts that are breaking to new highs like the ones in this post or with strong support bounces continue to offer up trend potential. Continue to focus on and trade the chart of the stocks you watch and follow your rules. AAPL +7.12 QCOM +0.85 GOOG +11.41 BIDU +16.13 NDX 100 stocks stronger than the NDX include: WYNN, JOYG, BRCM, ADBE, AMAT, DISH, NTAP, RIMM, MICC, DELL, FWLT, SHLD, NIHD, ADSK, BIDU, CMCSA, AAPL, LBTYA, STLD, JBHT, CA, MRVL, ISRG, LOGI, ORLY, STX, INTC, CTSH, ERTS, XLNX, INFY, CERN, ATVI, NWSA and ALTR. Stocks to Watch on Tuesday 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 Moving Above 30 DMA = 8 FLS, GXDX, JEC, MUR, PCP, SWN, WRC, URE Moving Below 30 DMA = 2 DV, FAZ Staying Below 30 DMA BKC, HANS, TDG, GPRO, STRA, TRLG, AMED, FSLR, GMCR, APEI, PWR, NIHD, JOSB, SPWRA, FAS, UYG, ESI, EBAY, BAP, CHL, USD, GME, PETS, MON, X, PSYS, NTLS, PPD, BIIB, FUQI, CBST, RIMM, MYGN Intermediate Term Market Trend: Up Short Term Market Trend: Up