SPX Inches Higher on Veterans Day...

Attention: Dave will sub in VC Options tomorrow, Thursday from 11 am to 1 pm ET... DJIA + 44.29 +0.43% SP500 + 5.50 +0.50% COMPQ + 15.82 +0.74% Russell 2000 + 5.78 +0.98% Exchange NYSE NASD Advancing 1,884 1,692 Declining 1,128 1,013 Oil $79.28 +0.23 Gold $1,102.50 +12.00 SOX 315.76 +4.24 VIX 23.04 +0.20 The VIX moved up and did not confirm the move up in the SPX on Wednesday. The SOX moved up and did confirm the move up in the COMPQ. Strongest Sectors: XLF +1.35%...XLB +0.98%...XLI +0.77% Weakest Sectors: XLU -0.24%...XLE -0.03%...XLY +0.10% Seven of nine sectors moved higher on Wednesday. Financials, Materials, Industrials and Technology were stronger than the SPX +0.50%. Financial stocks stronger than XLF +1.35%: SPG, IVZ, PRU, SCHW, BAC, WFC, UYG, BK, MET, AFL, GS, TROW, CME, PNC, NTRS and ETFs UYG and FAS. Tech stocks stronger than XLK +0.60%: GLW, AMAT, INTC, EBAY, DELL, CSCO, TXN, AMT, QCOM, GOOG and ADP. 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 Thank you to all Veterans who have served America. My own father served in three wars and more that two decades in the Navy and Army, so I know all who have served America in our military have done so with both personal and family sacrifice. Thank you again for your sacrifice and service. The SPX formed a potential shooting star today. If confirmed this could lead to a short term down trend. My technical assessment as of Wednesday is that the SPX is more likely to continue its short term up trend rather than reverse. Expect continued price fluctuation and realize that a short term reversal can occur with a break below the S1 support level. Buyers and sellers were battling it out today but the buyers were net winners forming a white candle and a new high close. Here it is bottom line… The SPX on Wednesday formed: - a higher high and higher low - a new high close at 1,098.51 by 0.61 points (10/19) - a new intra-day high at 1,105.37 by 4.01 points (10/21) - a new daily high low 1,093.81 by 7.33 points (10/19) The INDU had a new high close 199.07 points higher than its 10/19 close Financials were the strongest sector The NASDAQ was stronger than the SPX The small cap RUT was stronger than the NASDAQ The SOX was stronger than the RUT and NASDQ and flashed a C-Pattern entry The DJ Transportation Average was stronger than any of the above gaining 1.81% (click image to enlarge) The last five horizontal resistance levels had a horizontal price channel lasting from six to ten days. As of today a similar sideways price action is not yet evident on the chart. Horizontal price action is not a requirement; rather it is how the big money has been actually trading this trend. (click image to enlarge) Guidance: The intermediate term trend is up with the short term trend also moving up. 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 ultimately 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. While I conclude the probabilities are slightly in favor of a breakout at this time, you must stay mentally flexible and act on what the market actually does. Since Wednesday was a new high day that did not stay above horizontal resistance we are on Yellow Alert for short term traders. Focus on and trade the chart of the stocks you watch and follow your rules. AAPL +0.27 QCOM +0.31 GOOG +4.25 BIDU +3.80 NDX 100 stocks stronger than the NDX include: WYNN, INFY, NVDA, WCRX, JBHT, STX, GRMN, EXPD, LRCX, ORLY, LBTYA, ISRG, STLD, BIIB, ALRT, AMAT, MCHP, KLAC, MICC, CERN, CEPH, JOYG, JNPR, FWLT, INTC, CMCSA, RIMM, CHRW, XLNX, EBAY, MXIM, SBUX, NIHD, AMGN, DELL, DISH, CSCO, DTV, VRSN, VRTX and ROST. Stocks to Watch on Thursday 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, PCLN, FLS, GXDX, MUR, PCP, SWN, WRC, URE, GMCR, MON Moving Above 30 DMA = 6 FAS, JCOM, PPD, RIMM, USD, UYG Moving Below 30 DMA = 0 Staying Below 30 DMA JEC, DV, FAZ, BKC, HANS, TDG, GPRO, STRA, TRLG, AMED, FSLR, APEI, PWR, NIHD, JOSB, SPWRA, ESI, EBAY, BAP, CHL, GME, PETS, X, PSYS, NTLS, BIIB, FUQI, CBST, MYGN Intermediate Term Market Trend: Up Short Term Market Trend: Up