Futures Points to a Mixed Opening...

11:06 am ET - X has formed a potential intra-day double bottom at 54.50 area and a subsequent higher high and higer low...on the daily chart X is currently a dragonfly doji/hammer... 10:00 am ET - SHLD is forming a bullish harami in a bull flag pattern... 9:55 am ET - on Thursday X -2.10 was upgraded to Buy from Neutral at Longbow, this morning downgraded to Buy from Conviction, and the metals and steel sector to neutral from Attractive at Goldman (GS)...they also downgraded FCX... MICC is forming a bullish harami in a bull flag... BMO – ES -2.50 and NQ +3.00 futures are mixed in pre-market trading pointing to a mixed open. AAPL -0.96, AMZN -0.67, GOOG -21.44 and BIDU -8.56 are lower and ISRG +24.31 is higher in pre-market trading. The Euro is up 49 pips in overnight trading creating a short term reversal in the dollar. Oil is down 25 in electronic trading. XLE is down 31 cents in pre-market trading. SPY is down 34 cents in pre-market trading. XLF is down 2 cents in pre-market trading. Continue to watch XLF as a key to sustain the breakout in the SPX which it is not doing this morning. There is still a 1,234 chart target for the end of January. Without a strong positive reaction to earnings this week and next we don’t see this target being achieved by the end of January as we stated in Friday’s post. Remember direction and price target are more important than time. Follow your rules in any trading actions today. Be logical. Watch for a potential support bounce or an inside day this morning and the R1 level of Thursday’s large black candle. If support breaks look for price to fall to the next support level. SPX Support = 1,106 - 1,117 Resistance = 1,125 – 1,133, 1,145, 1,155, 1,170 Trading Down: WDC, POT, AAPL, AMZN, BUCY, AGU, TSL, EBAY, STX, SBUX, X Trading Up: ISRG, UNH, NTRS At the Open on Friday SPY – QQQQ – FAS – SHLD – CREE – STX – STT – NTRS – BAC – INFY – ZION – X – AAPL – AKAM – AMZN – NVDA – RIMM – SNDK – BUCY – DECK – FWLT – ISRG – PCLN – UAUA – ACN – AGU – AMD – CAT – DE – DOW – DHR – MA – PCP – POT – UNP – WHR –