2009 One Last Surprise in the Last 25 Minutes...

Happy New Year Everyone...Thank you for sharing 2009 with Chart Signals! DJIA - 120.46 -1.14% SP500 - 11.32 -1.00% COMPQ - 22.13 -0.97% Russell 2000 - 8.02 -1.27% Exchange NYSE NASD Advancing 996 1,049 Declining 2,026 1,736 Oil $79.36 +0.08 Gold $1,095.20 +3.70 SOX 359.91 -1.48 VIX 21.68 +1.72 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: XLF -0.21%…XLE -0.80%...XLK -0.86% Weakest Sectors: XLU -1.43%...XLB -1.38%...XLV -1.33% All nine sectors moved lower on Thursday. Financials, Energy, Technology, Consumer Discretionary and Consumer Staples were stronger than the SPX -1.00%. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE, XLI, XLU Horizontal Breakout: XLF Sideways: Down Trending: Key Resistance Levels: 1,119 = December High 1,025 - 1,133 = 1,075 BO chart target - Sep 08 Low Key Support Levels 1,105 - 1,113 = November High 1,101 = October High 1,087 = Nov 10 Channel low 1,082 = Nov 9 S1 level 1,075 = 875 Breakout Chart Target 2009, one of the most dramatic market years in history, came to a close on Thursday with a final dramatic sell off during the last 25 minutes of trading. 2009 was as dramatic for the end of the bear market during the first two months of 2009, as it was for the 10 months of surprising rebound from the March 6 low. Don’t let the 25 minute sell off on Thursday distract you from the trend. Check out these charts: (click image to enlarge) 2009 Returns COMPQ +43.8% RUT +25.2% SPX +23.4% INDU +18.8% SOX +69.6% Check out thise chart: (click image to enlarge) Check out this chart: (click image to enlarge) Check out this chart: (click image to enlarge) In 2010 we look for: Economic recovery to continue… The up trend in stocks to continue although at a slower rate of increase (not that this really matters since we’ll just trade the trend whatever its is)… Interest rates to rise later in the year… The dollar to rise… The SPX and Euro to decouple… Bonds to move lower as interest rates rise…

Guidance: Stay with your up trending positions. Raise your stops. Look for the intermediate term trend to continue. XLF continues to be the key to the SPX breakout following through to the upside. Stay with trends that have broken above resistance. Watch for re-entry on bull flag trend continuation moves. Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules. AAPL -0.91 QCOM -0.60 GOOG -2.75 BIDU -5.00 NDX 100 stocks stronger than the NDX include: TEVA, RIMM, WCRX,NVDA, ILMN, PDCO, SRCL, DTV, CTSH, LBTYA, BIIB, MRVL, LIFE, CTAS, AAPL, ADSK, MICC, GOOG, RYAAY, CA, PPDI and NTAP. Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA DLB, WCG, ALGT, BDX, TSL, AFAM, GR, SYNA, MELI, PCLN, PCP, MON, TDG, X, BIIB, NTLS, NIHD, VPRT, URE, BLUD, GES, USD, BKC, CBST, SNA, FSLR, MYGN, RIMM, AMED, CLB, DV, ORCL, GMCR, UNG, HANS, SWN, CAM, MHS, CTSH, WAB, ESI, ICE, JEC, MOS, UYG, VAR, AMZN, AAPL, JOSB, ACN, DECK, EBAY, K, RCI, SLGN, FAS, USO, GS, JCOM Moving Above 30 DMA = 0 Moving Below 30 DMA = 4 CEDC, ESRX, MCD, WMT Staying Below 30 DMA ATW, IPI, AMX, JOYG, CGA, FAZ, HLF, BIDU, GILD, HDB, BYI, PWRD, GME, CHL, FLS, FUQI Intermediate Term Market Trend: Up Short Term Market Trend: Down