SPX Forms Spinning Top...

DJIA + 76.71 +0.79% SP500 + 6.69 +0.65% COMPQ + 4.09 +0.20% Russell 2000 - 0.37 -0.07% Exchange NYSE NASD Advancing 1,629 1,308 Declining 1,417 1,426 Oil $78.13 -1.74 Gold $1,054.00 +13.60 SOX 297.37 +0.76 VIX 29.78 -0.91 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: XLI +1.15%...XLY +0.97%...XLP +0.97% Weakest Sectors: XLU -0.05%...XLV +0.43%...XLK +0.58% Eight of nine sectors moved higher on Monday. Industrials, Consumer Discretionary, Consumer Staples, Materials and Financials were stronger than the SPX +0.65%. Financial stocks stronger than XLF +0.85%: PNC, KEY, IVZ, USB, ICE, AXP, PRU, JPM, CB, BK STT, CME, TROW and ETFs UYG and FAS. Tech stocks stronger than XLK +0.58%: MA, ADP, HPQ, QCOM, AMT, CSCO, AMAT and EBAY. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,044 = October Horizontal Old Resistance 1,056 = Sep 25 R1 level 1,061 = Sep 16 S1 Level 1,075 = 875 Breakout Chart Target Key Support Levels 1,025 = 950 Breakout Chart Target The SPX traded in a 22 point range on Monday to finish the day up 6.69 at 1,042.88, within a quarter point of Wednesday’s low and in the 1,044 support/resistance area. This SPX formed a spinning top. Look at the August, September, October and November low SPX chart in Monday’s post earlier. See the pattern. Buyers and sellers were certainly fighting for control again on Monday with each controlling parts of the trading day until the buyers wound up winning the day. The big news of the day came after the market closed and SWK and BDK announced merger agreement in which SWK will acquire BDK for 1.275 SWK shares for each BDK share. BDK jumped over $11 or 23% in after hours trading. Look for a big jump in BDK options and the open on Tuesday. Those who have been following our virtual trades on the stock and options will like the net these trades are going to return. We’ll keep you posted on the results. Seventy two stocks in the NDX 100 closed higher. VRTX gained 7.72% on positive news on its Hepatitis C drug. FSLR dropped another 23 cents on our straddle trade from last week. Guidance: The intermediate term trend is still up while the short term trend shifted from down to neutral. Downward momentum slowed and shifted to moderately upward after the SPX touched a low of 1,029 just 4 points above its 1,025 support. Watch for potential acceleration in momentum on Tuesday. SPX short term resistance is still at 1,056. We posted in Friday’s Guidance to look for a “slow down in downward momentum and support bounce of some magnitude. If a stock you are trading is above its 20, 30 or 50 DMA and stays above that level and a recent horizontal breakout level, then expect its up trend to continue." Stocks above their 20 and 30 DMA did stay above, while many stocks below their MA stayed below. Continue to trade the chart of the stocks you watch and follow your rules. AAPL +0.81 QCOM +0.48 GOOG -2.13 BIDU -2.47 NDX 100 stocks stronger than the NDX include: VRTX, ESRX, EXPD, WCRX, BBBY, LINTA, FWLT, JOYG, URBN, MICC, FAST, SBUX, AKAM, NTAP, LOGI, SIAL, ROST, EXPE, ADP, COST, CTXS, STX, VRSN, TEVA, HSIC, ADSK, QCOM, CTAS, BIIB, FLIR, KLAC and DTV. Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA K, JW.A, DECK, VPRT, AMZN, SLGN, NFLX, DV, MCD, ICE, MUR, DLB, FAZ, RCI, ESRX, MHS, WCG Moving Above 30 DMA = 9 ALGT, BDX, BYI, CPLA, VAR, ACN, GR, JOYG, WMT Moving Below 30 DMA = 1 SNA Staying Below 30 DMA AAPL, ATW, BLUD, CLB, CTSH, FLS, GES, GPRO, HANS, HDB, ORCL, RBN, SWN, AFAM, BKC, EZPW, GXDX, HLF, JEC, PCLN, STRA, WAB, TRLG, PWRD, AMED, AMX, BIDU, CAM, FSLR, GMCR, APEI, MOS, PCP, PWR, WRC, NIHD, JOSB, TDG, SPWRA, FAS, UYG, ESI, EBAY, BAP, CHL, GILD, URE, USD, DLTR, GME, SNHY, URE, PETS, MON, X, PSYS, NTLS, PPD, BIIB, JCOM, FUQI, CBST, RIMM, MYGN, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Neutral