INDU and SPX Rise...Nasdaq & RUT Move Lower...

DJIA 10,663.99 + 45.80 +0.43% SP500 1,146.98 + 2.00 +0.17% COMPQ 2,300.05 - 4.76 -0.21% Russell 2000 643.99 - 0.57 -0.09% Exchange NYSE NASD Advancing 1,811 1,326 Declining 1,226 1,381 Oil $83.05 +0.30 Gold $1,150.70 +12.50 SOX 366.62 -1.06 VIX 17.55 -0.58 The VIX moved down and did confirm the move up in the SPX on Monday reaching a 19 month closing low. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLI +1.09%…XLU +1.04%...XLV +0.57% Weakest Sectors: XLB -0.54%...XLK -0.39%...XLY -0.20% Five of nine sectors moved higher on Monday. Industrials, Utilities, Healthcare and Consumer Staples were stronger than the SPX +0.17%. SPX Chart Signals Target: 1,234 end of January. This is not a subjective forecast; rather it is the chart target price and time based on the mid July breakout at 950. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE, XLI, XLU Horizontal Breakout: XLF Sideways: Down Trending: Key Resistance Levels: 1,145 = 1,133 BO chart target – Dec 31 Low 1,155 = chart target Key Support Levels 1,025 - 1,133 = 1,075 BO chart target - Sep 08 Low 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 trend continues to rise although at a mixed pace over the past five days as evidenced again by the rise in INDU and SPX and the pause in the NASDAQ and RUT. Advancers and decliners were again near even. Selective moves have been the market theme for the past five days. X -3.69% in a very strong up trend for the past several weeks, formed a dark cloud cover and pulled back while CAT +6.28% which has been in consolidation for two and a half months broke above resistance on above average volume. These are just two of many examples over the past week illustrating the selective nature of each day’s move. Some stocks have big up moves and other stocks moving down. CAT, HEAT, CGA and DE had strong moves higher on Monday while MELI, UNG, X and WLT moved lower. AA reported below expectations after the close and moved down 5% in after-hours trading. INFY reports before the open on Tuesday. Guidance: Look for the intermediate term up trend to continue as we move into Earnings Season. Be mindful of the potential for a pause or pull back which we saw in several stocks on Monday. Stay with your up trending positions. Continue to raise your stops. Stay with trends that have broken above resistance. Watch for horizontal breakout trend continuation moves. Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules. AAPL -1.87 QCOM -0.18 GOOG -0.91 BIDU -3.70 NDX 100 stocks stronger than the NDX include LINTA, HSIC, VRTX, PDCO, LRCX, STX, AMAT, CEPH, MICC, PPDI, ILMN, PCAR, LOGI, GRMN, JBHT, XRAY, PCLN, SIAL, IACI, GILD, ISRG, PAYX, INTC, FISV, INFY, ORLY, ROST, INTIU, ADP, AMGN, EXPD, LIFE, DISH, CHRW, SHLD, CHKP and YHOO. Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA CREE, MA, DLB, DE, WCG, ALGT, BDX, TSL, AFAM, GR, SYNA, PCP, AGU, MON, AMD, TDG, X, NTLS, NIHD, URE, GES, USD, BKC, CBST, SNA, SNDK, MYGN, AMED, CLB, WLT, GMCR, UNG, HANS, SWN, CAM, CTSH, WAB, ESI, JEC, MOS, UYG, VAR, AAPL, ACN, DOW, DECK, SLGN, FAS, USO, GS, ATW, AMX, BYI, CHL, CEDC, HDB, HEAT, IPI, JOYG, CGA, CAT, FLS, FUQI, HLF, POT, DV, ICE, K, MHS, EBAY, PWRD Moving Above 30 DMA = 1 WMT Moving Below 30 DMA = 3 BKC, WCG, UNG Staying Below 30 DMA VPRT, GME, MELI, PCLN, MCD, FAZ Intermediate Term Market Trend: Up Short Term Market Trend: Up