Late Rally Turns SPX Positive...Barely...

DJIA + 3.10 +0.03% SP500 + 0.22 +0.02% COMPQ + 2.88 +0.13% Russell 2000 + 0.23 +0.04% Exchange NYSE NASD Advancing 1,378 1,424 Declining 1,627 1,296 Oil $79.28 +0.41 Gold $1,091.50 -5.50 SOX 361.39 +5.21 VIX 19.98 -0.03 The VIX moved down and did confirm the move up in the SPX on Wednesday. From a practical view both the VIX and SPX were essentially unchanged. The SOX moved up and did confirm the move up in the COMPQ. Strongest Sectors: XLK +0.35%…XLF +0.07%...XLU -0.03% Weakest Sectors: XLY -0.69%...XLI -0.50%...XLV -0.28% Of the nine sectors only Technology and Financials moved higher and were stronger than the SPX +0.02%. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE, XLI, XLU Horizontal Breakout: XLF Sideways: Down Trending: Key Resistance Levels: 1,025 - 1,133 = 1,075 BO chart target - Sep 08 Low Key Support Levels 1,119 = December High 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 Just one trading day left and 2009 is in the record book. Have a wonderful New Years Eve on Thursday. I’ll see you in the Weekly Wrap after the market close. Yes I can't stay, away even when I'm not around. Indexes congested for a third straight day as stocks opened slightly lower from overnight futures trading but rallied almost immediately after the open and then bounced up and down in a very narrow trading range. The SPX and INDU formed hammer like patterns after a one day pull back on Tuesday. Advancers declined slightly on the NYSE and increased slightly on the NASD from Tuesday. XLF spent most of the day lower before finishing up 1 cent. Believe it or not we are still trying to discover, if this is the pause that refreshes or the beginning of a short term pull back? I like the looks of these nice bull flag patterns that we shared on Tuesday night. Sing…Two piercing lines, one spinning top and a doji in a bull flag…to the tune of the Twelve days of Christmas... Check out these charts: (click image to enlarge) 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. Be prepared if a pause that refreshes or pull back occurs. Remember Thursday is the last day of trading this year…Happy New Year! 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. DECK really broke out while GMCR held steady. Check out these Breakout and C Pattern Setup Charts: (click image to enlarge) AAPL +2.54 QCOM +0.21 GOOG +3.33 BIDU -3.40 NDX 100 stocks stronger than the NDX include: NVDA, STX, DELL, MRVL, IACI, AMAT, NTAP, BRCM, LRCX, ERTS, MXIM, KLAC, MCHP, XLNX, AAPL, GRMN, LLTC, ALTR, CEPH, FSLR, INTC, ATVI, VRSN, GILD, TEVA, SYMC, SIAL, BIIB, NIHD, GOOG, CELG, WCRX, EBAY, ORLY, VRTX, QCOM, JOYG, YHOO and CHRW. Stocks to Watch on Thursday 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, UNG, HANS, SWN, CAM, MHS, CTSH, WAB, ESI, ESRX, ICE, JEC, MOS, MCD, UYG, VAR, AMZN, AAPL, JOSB, RBN, ACN, DECK, EBAY, K, RCI, SLGN, FAS, USO, WMT Moving Above 30 DMA = 3 CEDC, GS, JCOM Moving Below 30 DMA = 1 ATW Staying Below 30 DMA IPI, AMX, JOYG, CGA, FAZ, HLF, BIDU, GILD, HDB, BYI, PWRD, GME, CHL, FLS, FUQI Intermediate Term Market Trend: Up Short Term Market Trend: Up