SPX - 1,090 Support Holds...Inside Day...Bullish Harami

DJIA 10,196.86 +23.88 +0.23% SP500 1,096.78 +5.02 +0.46% COMPQ 2,210.80 +5.51 +0.25% Russell 2000 618.11 +0.99 +0.16% Exchange NYSE NASD Advancing 1,757 1,330 Declining 1,293 1,381 Oil $75.26 +0.72 Gold $1,095.70 +6.70 SOX 334.18 +4.69 VIX 25.41 -1.90 The VIX moved down and did confirm the move up in the SPX on Monday. The SOX moved up and did confirm the move up in the COMPQ. Strongest Sectors: XLB +0.89%…XLK +0.83%...XLU +0.67% Weakest Sectors: XLV -0.00%...XLP +0.19%...XLY +0.52% Eight nine sectors moved higher on Monday as buyers stepped following last week’s pullback. Materials, Technology, Utilities, Energy, Industrials, Financials and Consumer Discretionary were stronger than the SPX +0.46%. 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. We consider extremely improbable that this target will be reached by the end of January. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE, XLI, XLU Horizontal Breakout: XLF Sideways: Down Trending: Key Resistance Levels: 1,101 = October High 1,105 - 1,113 = November High 1,119 = December High 1,025 - 1,133 = 1,075 BO chart target - Sep 08 Low 1,145 = 1,133 BO chart target – Dec 31 Low 1,155 = chart target Key Support Levels 1,087 = Nov 10 Channel low 1,082 = Nov 9 S1 level 1,075 = 875 Breakout Chart Target 1,050 = Oct 08 High Downward momentum slowed on Monday as support held with an inside day and bullish harami on many index and stock charts. AKS rose +$1.08 or +5.35%, after reporting positive earnings Monday morning. After the close AAPL rose +$1.82 or +0.90% reporting better than expected earnings, but surprised the market with changes in their accounting that made the report not directly comparable with existing estimates. As a result the stock was down then up then down and finally up after the report. Tomorrow’s trading should be more indicative of the markets’ interpretation of the strength of the report after they can factor in the accounting change. The February AAPL straddle was priced at 20 near the close, so a gap of +1.82 is very weak. Also reporting after the close ZION +0.80 or +4.46%, AMGN +0.49 or +0.88% and TXN -0.40 or -1.69%. Continue to watch earnings reaction this week. Tuesday’s Earnings to Watch: X, DD, VZ, ALGT, ALTR, BHI, BA, CAT, DAL, JEC, JNJ, NUE, TRV, YHOO Guidance: The SPX closed just above the 1,090 support area. AAPL trading will likely have an influence on Tuesday whether support holds or breaks. If 1,090 support area breaks, the next level of SPX support is 1,075 and then 1,050. If you have not yet been stopped out of your up trending positions, continue to raise your stops. Look for down trending setups on stocks that have shown reversal patterns or that are breaking support. Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules. AAPL +5.32 QCOM +0.13 GOOG -10.01 BIDU -1.74 NDX 100 stocks weaker than the NDX include: WCRX, ATVI, SBUX, JOYG, GOOG, SHLD, AMGN, VRTX, ADSK, CEPH, CA and SRCL. NDX 100 stocks stronger than the NDX include: LBTYA, STX, AAPL, XLNX, INTC, NWSA, ORLY, DELL, LRCX, RYAAY, NVDA, LOGI, FLEX, BRCM, MSFT, ROST, LLTC, DISH, CMCSA, SYMC, MXIM, MCHP, INTU, COST, PDCO, INFY, ESRX, TEVA, MRVL, MICC and FISV. Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA ALGT, UAUA, CBST, SNDK, AMED, GMCR, HANS, ESI, JEC, VAR, WFC, BA, BYI, CEDC, ZION, K, MHS, MCD, FAZ Moving Above 30 DMA = 2 CHL, DLB Moving Below 30 DMA = 4 ACN, FLS, TDG, UNG Staying Below 30 DMA BUCY, DE, DECK, DOW, FAS, HLF, MA, SYNA, UNP, UYG, X, ATW, CAM, HDB, MHS, MOS, PCP, GR, URE, GS, HEAT, WHR, CAT, FCX, BAC, DHR, AGU, FUQI, ICE, IPI, SWN, USO, WLT, WMT, BKC, WAB, USD, PWRD, AMD, AMX, CGA, GES, MON, POT, TSL, BDX, MYGN, WCG, SPG, VPRT, GME, MELI, PCLN, NFLX Intermediate Term Market Trend: Up Short Term Market Trend: Down