SPX Pulls Back to Horizontal Channel Support and Rallies...

DJIA - 93.87 -0.90% SP500 - 14.90 -1.34% COMPQ - 36.32 -1.66% Russell 2000 - 14.47 -2.41% Exchange NYSE NASD Advancing 576 565 Declining 2,484 2,142 Oil $77.46 -2.12 Gold $1,141.90 +0.70 SOX 310.50 -11.03 VIX 22.63 +1.00 The VIX moved up and did confirm the move down in the SPX on Thursday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLP -0.48%...XLV -0.49%...XLY -1.13% Weakest Sectors: XLE -2.24%...XLF -1.94%...XLB -1.51% All nine sectors moved lower on Thursday. Consumer Staples, Healthcare, Consumer Discretionary and Uilities were stronger than the SPX -1.34%. 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 1,025 - 1,133 = 1,075 BO chart target - 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 The SPX fell during the first 90 minutes of trading and then slowly higher for the balance of the day. The SPX pulled back to 1,088 and then rose 6 points to close at 1,094.90. The intermediate term trend is still up and buyers stepped in near the Nov 10 support in its horizontal channel. Decliners led advancers 4 to 1 on the NYSE and all nine sectors were lower. While the pull back did not break below the support of the recent horizontal channel, momentum clearly moved down during the first 90 minutes trading. There were many hammers and bull flags formed on Thursday including: GOOG, ISRG, AMZN, ESRX, DOST, URBN, SBUX, STX, CREE. Guidance: The intermediate term is up while the short term trends has turned neutral. Friday is Options Expiration and next week is a holiday shortened week. Expect lighter volume next week. We said last night that trading won’t stay in this range for too long. Today it fell below 1,100 level again before finding support at 1,088. Today is exactly why we stay prepared for a break of support. Look for trading to stay above the 1,082 on Friday as traders unwind positions. Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules. AAPL -5.45 QCOM -0.40 GOOG -3.66 BIDU -7.11 NDX 100 stocks stronger than the NDX include NTAP, DTV, HANS, PPDI, EBAY, TEVA, AMGN, INTU, DISH, GENZ, ISRG, PDCO, COST, GILD, SMC, CMCSA, ADSK, GOOG, BIIB, BBBY ADP, IACI, CEPH and SBUX. Stocks to Watch on Friday Leading Stocks Holding Above 30 DMA K, JW.A, DECK, AMZN, SLGN, NFLX, MCD, ICE, DLB, FAZ, RCI, ESRX, MHS, WCG, ALGT, BDX, BYI, 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 Moving Above 30 DMA = 0 Moving Below 30 DMA = 10 ATW, BIIB, CAM, CLB, FLS, SNA, FAS, UYG, USD, PWRD Staying Below 30 DMA PPD, VPRT, GES, JEC, JOSB, WRC, EBAY, GMCR, JCOM, MUR, RIMM, SWN, DV, FAZ, BKC, HANS, GPRO, STRA, TRLG, AMED, FSLR, APEI, PWR, NIHD, SPWRA, ESI, GME, PETS, PSYS, NTLS, FUQI, CBST, MYGN Intermediate Term Market Trend: Up Short Term Market Trend: Neutral