SPX Closes Down Slightly at 1,107.93...

DJIA - 49.05 -0.47% SP500 - 6.18 -0.55% COMPQ - 11.05 -0.50% Russell 2000 - 3.48 -0.57% Exchange NYSE NASD Advancing 1,216 1,036 Declining 1,821 1,701 Oil $69.51 +1.18 Gold $1,122.50 -0.90 - Jan contract SOX 338.97 -1.31 VIX 21.49 +0.34 The VIX moved up and did confirm the move down in the SPX on Tuesday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLE +0.32%...XLV +0.03%...XLY -0.13% Weakest Sectors: XLF -1.59%...XLB -0.97%...XLU -0.63% Just two of nine sectors moved higher on Tuesday. Energy, Healthcare, Consumer Discretionary, Industrials and Consumer Staples were stronger than the SPX -0.55%. 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 Guidance: The SPX, INDU and COMPQ pulled back from Monday’s 52-week high. Lagging sector Energy XLE was Tuesday’s leading sector while Financials XLF was the weakest sector. A weaker XLF led Tuesday’s pullback. I maintain the view that the SPX will have a hard time breaking through resistance unless the XLF moves higher with a support bounce. Even with Tuesday’s modes pull back, the SPX continues to trade near resistance and we must continue to watch for a potential resistance breakout or a pull back to support. The SPX closed near Monday’s low, so short term traders should watch for a potential break of the low of the high day on Wednesday. This is our Yellow Alert. 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. Sellers took control near 1 pm ET after the SPX peaked. The breadth of the pull back strengthened as declining issues led advancing issues on both the NYSE and NASD. Tech stocks RIMM, CREE and QCOM were stronger on Tuesday while AAPL, AMZN, GOOG, BIDU, PCLN and the SOX index were moved lower. Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules. AAPL -2.81 QCOM +0.21 GOOG -2.59 BIDU -0.51 NDX 100 stocks stronger than the NDX include: DELL, VRTX, JOYG, FWLT, NIHD, ADBE, RIMM, NWSA, EXPD, WCRX, BIIB, CHRW, PDCO, CERN, XRAY, ESRX, ROST, NTAP, MXIM, QCOM, DTV, FSLR, LLTC, KLAC, ERTS, VRSN, PDI, CTXS and CMCSA. Check out these Support Bounce Charts: PSYS, ATW, JOYG, VPRT Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA K, JW.A, AMZN, SLGN, DLB, ESRX, MHS, WCG, ALGT, BDX, VAR, ACN, TSL, AFAM, AMX, GR, SNHY, SYNA, CGA, WMT, HDB, MELI, PCLN, PCP, MON, MOS, TDG, X, IPI, BIIB, NTLS, AMX, PETS, NIHD, VPRT, URE, BLUD, GES, GPRO, USD, BAP, BKC, CBST, SNA, FSLR, CPLA, MYGN, RIMM, AMED, CLB, DV, ORCL, ICE, SLGN, ESI, GXDX, HANS, HLF, PPD, SWN, JOYG Moving Above 30 DMA = 2 PSYS, FAZ Moving Below 30 DMA = 6 BIDU, DECK, GILD, MCD, WAB, UYG Staying Below 30 DMA DLTR, CTSH, RCI, BYI, JCOM, EBAY, FAS, NFLX, JOSB, PWRD, AAPL, GME, CHL, FLS, RBN, ATW, CAM, JEC, TRLG, FUQI Intermediate Term Market Trend: Up Short Term Market Trend: Neutral