SPX Reaches 1,125...AAPL Moves Higher on Volume Increase...

DJIA + 53.66 +0.51% SP500 + 5.89 +0.53% COMPQ + 16.05 +0.71% Russell 2000 + 3.09 +0.49% Exchange NYSE NASD Advancing 2,181 1,631 Declining 752 980 Oil $77.10 +0.43 - Feb contract Gold $1,104.10 +10.80 SOX 361.06 +5.69 VIX 19.47 -0.24 The VIX moved down and did confirm the move up in the SPX on Thursday. The SOX moved up and did confirm the move up in the COMPQ. Strongest Sectors: XLK +0.92%…XLF +0.90%...XLB +0.78% Weakest Sectors: XLV +0.00%...XLY +0.07%...XLP +0.38% Eight of nine sectors moved higher on Wednesday. Technology, Financials, Materials and Utilities were stronger than the SPX +0.53%. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU 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

The COMPQ closed at 2,285.69 its highest close since Sept. 3, 2008. The COMPQ broke through its 61.8% Fib retracement from its 2007 high indicating there is more to come in this up trend. AAPL +3.43% was the NDX leader on Thursday with higher volume than it had on Tuesday and Wednesday notwithstanding that Thursday was only a half day of trading. The AAPL breakout on volume is additional technical evidence of the strength of the COMPQ trend. The SPX finally broke out of horizontal resistance and closed at 1,126.48 its next resistance level and a new 52-week closing high. XLF was the second leading sector up 0.90% gave the strength to the SPX on this breakout. This is exactly what we have been saying for the past few weeks that the SPX likely would not breakout without the support of the Financials.

Check out these charts: (click image to enlarge)

While most NDX stocks moved higher on Thursday including leaders MSFT, ORCL and GOOG on lower volume. This is to be fully expected due to the half day of trading and is not a negative. Other NDX leaders on Thursday included MRVL and SHLD which moved higher on volume that was near their Tuesday and Wednesday volume levels making their rise even more impressive.

Check out these charts: (click image to enlarge)

Guidance: Stay with your up trending positions. Raise your stops. Look for the short term trend to continue on the strength of the AAPL breakout and XLF. XLF continues to be the key to the SPX breakout following through to the upside. Be prepared if a pause that refreshes occurs. Advancing issues led declining issues on both the NYSE and NASD. NASDAQ stocks AAPL, GOOG, MRVL, SHLD, BRCM, MSFT, ORCL and DECK moved higher. Stay with trends that have broken above resistance and watch for potential pull backs in stocks that are below recent highs. Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules. AAPL +6.94 QCOM +0.15 GOOG +6.80 BIDU +1.79 NDX 100 stocks stronger than the NDX include: AAPL, DELL, MRVL, SHLD, ADSK, LINTA, BRCM, GRMN, CA, MXIM, LBTYA, KLAC, ERTS, SYMC, FLEX, ILMN,ALTR, APOL, LLTC, MICC, HOLX,ISRG, XLNX, INTC, GOOG, FWLT, NWSA, FLIR, FSLR, NTAP, VRTX and ORCL. Check out these Support Bounce Charts: (click image to enlarge) Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA JW.A, AMZN, SLGN, DLB, WCG, ALGT, BDX, ACN, TSL, AFAM, GR, SNHY, SYNA, HDB, MELI, PCLN, PCP, MON, TDG, X, BIIB, NTLS, PETS, NIHD, VPRT, URE, BLUD, GES, GPRO, USD, BKC, CBST, SNA, FSLR, CPLA, MYGN, RIMM, AMED, CLB, DV, ORCL, GXDX, HANS, PPD, SWN, CAM, MHS, CTSH, WAB, ESI, ESRX, ICE, JEC, MOS, TRLG, MCD, UYG, VAR, AAPL, JOSB, RBN, JOYG, BAP, DECK, DLTR, EBAY, K, RCI, SLGN Moving Above 30 DMA = 4 AMX, PSYS, FAS, IPI Moving Below 30 DMA = 1 CGA Staying Below 30 DMA FAZ, HLF, WMT BIDU, GILD, BYI, JCOM, FLS, PWRD, GME, CHL, FLS, ATW, FUQI Intermediate Term Market Trend: Up Short Term Market Trend: Up