SPX Pauses on Tuesday...

Good Evening...If you have not yet responded I would love to receive an email from you at chartsignals@yahoo.com on: What features in Chart Signals do you find of greatest interest or value? I am evaluating additional changes and would like to know what you find worthwhile. If you would email me today, it would be greatly appreciated. Thank you! DJIA - 17.24 -0.16% SP500 - 0.59 -0.05% COMPQ - 6.83 -0.31% Russell 2000 - 2.23 -0.37% Exchange NYSE NASD Advancing 1,633 1,392 Declining 1,606 1,105 Oil $76.02 -1.11 Gold $1,165.80 +1.90 SOX 312.50 +0.98 VIX 20.47 -0.69 The VIX moved down and did not confirm the move down in the SPX on Tuesday. The VIX made a 52-week new close low with its lowest close since August 29, 2008. The SOX moved up and did not confirm the move down in the COMPQ. Strongest Sectors: XLV +0.78%...XLE +0.58%...XLP +0.22% Weakest Sectors: XLI -0.82%...XLF -0.74%...XLK -0.18% Four of nine sectors moved higher on Tuesday. Healthcare, Energy, Consumer Staples and Utilities were stronger than the SPX -0.05%. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 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 Last Friday I suggested that the Thanksgiving Day holiday shortened trading week would likely be a dull week. Well Tuesday got dull. The SPX traded in a 9.93 point trading range closing at 1,105.65 down -0.59 points (YES, that’s less than one point) or -0.05%. In other words dull. AAPL volume dropped -33%, CAT volume fell -29%, GOOG volume was off -36% and PCLN volume tanked -60%. Not every stock had lower volume, but in general trading volume was lower. A few stocks WHR, DISH, AMLN and DIA among others actually saw an increase in volume. Expect even lower volume on Wednesday and of course the lowest trading volume of the year so far on Friday. Check out these charts: (click image to enlarge) AMLN flag bounce/horizontal breakout on analysts upgrade on above average volume CREE bull flag bounce DE earnings released before market open Wednesday morning ILMN counter trend reversal divergence signal – click here for details on this strategy: http://chartsignals.blogspot.com/2008/10/reversal-trading-strategy-overview.html Guidance: Stocks sloshed around on Tuesday going almost nowhere. Trading volume was lower on many stocks. We expect volume to drop off further on Wednesday especially in the afternoon. Friday is a half trading day, so look for very light volume or do something else for fun. The intermediate term is up and the short term trend is still neutral. We expected traders to be reluctant to short this markets and buyers decided to buy the 1,098 area again. As we said buyers are stepping in at support and sellers take over at resistance in this horizontal channel. Many of the bull flags stalled in their support bounce as traders get ready for Thanksgiving Day. Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules. AAPL -1.44 QCOM +0.01 GOOG +0.74 BIDU -3.46 NDX 100 stocks stronger than the NDX include ILMN, GOOG, MCHP, BIIB, CEPH, AMGN, DISH, WCRX, LLTC, XRAY, MXIM,LIFE, ROST, DTV, HOLX, VRSN, APOL, ESRX, PPDI, ALTR, XLNX, URBN, EBAY, GENZ, NIHD, KLAC, BRCM, MRVL, CTSH, NTAP, CMCSA, SPLS, STLD and QCOM. Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA K, JW.A, DECK, AMZN, SLGN, NFLX, MCD, ICE, DLB, FAZ, RCI, ESRX, MHS, WCG, ALGT, BDX, VAR, ACN, JOYG, CTSH, HLF, AFAM, AMX, GR, SNHY, SYNA, WMT, AAPL, BLUD, DLTR, DV, GILD, HDB, ORCL, RBN, WAB, BIDU, EZPW, PCLN, GXDX, PCP, URE, MON, CPLA, MOS, TDG, X, BAP, CHL, BIIB, GME, NTLS, AMX, GPRO, PETS, NIHD Moving Above 30 DMA = 3 BKC, DV, USD Moving Below 30 DMA = 2 BYI, UYG Staying Below 30 DMA BAP, JOYG, SLGN, WAB, ATW, CAM, CLB, FLS, SNA, FAS, PWRD, PPD, VPRT, GES, JEC, JOSB, WRC, EBAY, GMCR, JCOM, MUR, RIMM, SWN, FAZ, HANS, STRA, TRLG, AMED, FSLR, APEI, PWR, SPWRA, ESI, PSYS, FUQI, CBST, MYGN Intermediate Term Market Trend: Up Short Term Market Trend: Neutral