SPX Closes at 1,106.41...

DJIA + 65.67 +0.63% SP500 + 4.06 +0.37% COMPQ - 0.55 -0.03% Russell 2000 + 4.99 +0.84% Exchange NYSE NASD Advancing 2,019 1,587 Declining 1,032 1,106 Oil $69.65 -0.89 Gold $1,119.40 -6.30 SOX 335.24 -3.37 VIX 21.59 -0.73 The VIX moved down and did confirm the move up in the SPX on Friday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLU +1.73%...XLI +1.00%...XLY +0.98% Weakest Sectors: XLK -0.22%...XLV +0.00%...XLE +0.05% Seven of nine sectors moved higher on Friday. Utilities, Industrials, Consumer Discretionary, Financials and Consumer Staples were stronger than the SPX +0.37%. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,105 - 1,113 = November High 1,119 = December High 1,025 - 1,133 = 1,075 BO chart target - Sep 08 Low Key Support Levels 1,101 = October High 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 Dec 4 in the Weekly Wrap I said “I wouldn’t be surprised if the SPX closed at 1,105.98.” I did not see any catalysts to move the SPX from its trading range between 1,085 and 1,119 of the prior four weeks. During the past week the SPX made a high of 1,110.72 on Monday and then moved to a low of 1,085.89 on Wednesday and true to its horizontal pattern buyers stepped in and moved the price to a 1,106.41 close on Friday. That is 0.43 point from the prior Friday’s close. Seldom will you see a pattern act more textbook that the horizontal trading range of the past week. This is now five consecutive weeks inside the 1,085 to 1,119 trading range. The INDU was relatively the strongest index for the week. Check out these charts: (click image to enlarge) The INDU has also been the strongest of the broad indexes since October. This rotation to the large mature companies has led the INDU through its October resistance levels. Among the strongest INDU stocks... Check out these charts: (click image to enlarge) Guidance: The SPX is once again at its horizontal resistance area. As I have stated one of the factors in the SPX staying in the area of resistance has been the relative weakness in the Financials, XLF. Healthcare, Utilities, Transportation and Consumer Discretionary have been the leading sectors keeping the SPX at resistance. On Monday, watch the strength of XLF. If Financials can gain strength and bounce off their support levels that would likely help the SPX break through resistance. Watch for a potential resistance breakout. The next level of resistance on the SPX is the 1,125 - 1,133 area. The SPX chart still has a 1,234 price target with by the end of January. Generally a horizontal price channel is a trend continuation pattern for the trend that was in place before the price channel began. The breadth of the rally strengthened on Friday as advancing issues increased on both the NYSE and NASD. Next Friday is triple witching with options and futures expiration. On Friday the majority of futures trading moved from the December contract to the March contract. Use symbol ESH0 for the March SP e-mini contract. Tech stocks were weak on Friday as AAPL, GOOG, BIDU, AMZN, PCLN, RIMM, CREE and the SOX index moved lower. X, STLD, AKS and several Dow stocks like AA moved higher. The Airline index XAL and individual stocks DAL, LCC, CAL, AMR, UAUA, ALD and LUV had big moves once again. The Euro moved lower to the 1.46 support area. MMM, DIS and KO all closed at new 52-week highs. Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules. AAPL -1.76 QCOM -0.66 GOOG -0.99 BIDU -4.22 NDX 100 stocks stronger than the NDX include: URBN, NWSA, STLD, CEPH, YHOO, RYAAY, SHLD, CTAS, APOL, SPLS, CERN, LINTA, COST, EXPD, PDCO, ORCL, ADSK, BIIB, CHKP, VRSN, EBAY, FISV, JBHT, CHRW, XRAY, AMAT, FAST, CA, HOWX, SBUX, DTV, JOYG, CMCSA, WYNN, GENZ, GILD, AMGN, WCRX, ISRG and FSLR. Check out these Support Bounce Charts: (click image to enlarge) Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA K, JW.A, AMZN, SLGN, MCD, DLB, ESRX, MHS, WCG, ALGT, BDX, VAR, ACN, TSL, AFAM, AMX, GR, SNHY, SYNA, CGA, WMT, GILD, HDB, MELI, PCLN, PCP, MON, MOS, TDG, X, IPI, BIIB, NTLS, AMX, PETS, NIHD, VPRT, URE, BLUD, DECK, GES, GPRO, USD, BAP, BKC, CBST, SNA, FSLR, CPLA, MYGN, RIMM, AMED, CLB, DV, ORCL Moving Above 30 DMA = 3 DLTR, ICE, SLGN Moving Below 30 DMA = 7 BIDU, CTSH, GXDX, HANS, HLF, RCI, FAZ Staying Below 30 DMA PSYS, BYI, WAB, JCOM, EBAY, FAS, UYG, NFLX, JOSB, JOYG, PWRD, AAPL, GME, CHL, FLS, RBN, ATW, CAM, PPD, JEC, GMCR, SWN, TRLG, ESI, FUQI Intermediate Term Market Trend: Up Short Term Market Trend: Neutral