SPX Bounces After One Day Pull Back...

DJIA 10,680.77 + 53.51 +0.50% SP500 1,145.68 + 9.76 +0.83% COMPQ 2,307.90 + 25.59 +1.12% Russell 2000 643.56 + 8.06 +1.27% Exchange NYSE NASD Advancing 2,246 1,832 Declining 800 871 Oil $79.65 -1.14 Gold $1,136.40 +7.50 SOX 359.09 +5.64 VIX 17.85 -0.40 The VIX moved down and did confirm the move up in the SPX on Wednesday. The SOX moved up and did confirm the move up in the COMPQ. Strongest Sectors: XLV +1.32%…XLB +1.17%...XLY +1.17% Weakest Sectors: XLE +0.37%...XLI +0.41%...XLP +0.71% All nine sectors moved higher on Tuesday. Healthcare, Materials, Consumer Discretionary, Financials, Utilities and Technology were stronger than the SPX +0.83%. 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 As I stated in VC on Tuesday that traders that are going to sell because of disappointing earnings in AA would sell that day or Wednesday at the latest and then technical analysis would tell the story of buyers and sellers on the chart. After a one day sell off buyers stepped into AA and formed a bullish harami as the stock rose 46 cents or +2.96%. The INDU made a new closing high on Tuesday while the SPX, COMPQ and RUT closed near Monday’s high close. Many stocks bounced in their bull flag pattern. Look at these Charts… (click image to enlarge) Many other stocks formed hammers and or bull flags near support and are creating potential setups for Thursday including: ATI, TIE, FCX, CF, NEM, SPY, BA, CAT, X, ATI, WOR, STLD, BUCY, CREE, DE, DECK, DOW, FWLT, JOYG, PCP, SNDK, TSL Guidance: Look for the intermediate term up trend to continue as we move into Earnings Season. Tuesday’s pull back turned into a support bounce in many stocks or other at support candle patterns on Wednesday. Watch for entry opportunities on bull flag bounces on Thursday. Stay with your up trending positions. Continue to raise your stops. Stay with trends that have broken above resistance. Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules. AAPL +2.93 QCOM +0.21 GOOG -3.39 BIDU +52.99 NDX 100 stocks stronger than the NDX include: BIDU, JOYG, NTAP, IACI, RIMM, ILMN, CTSH, FLEX, BRCM, SHLD, STX, HSIC, GRMN, SBUX, VRTX, WYNN, SIAL, WCRX, ERTS, CSCO, CA, MICC, EBAY, ADBE, INTC, URBN, MXIM, HOLX, SRCL, MRVL, INFY, CMCSA, BIIB, CTAS, CERN, BBBY, PDCO, HANS and AAPL. Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA CREE, MA, DLB, DE, ALGT, TSL, GR, SYNA, AGU, PCP, MON, TDG, X, UAUA, WHR, URE, USD, CBST, GES, SNDK, AMED, WLT, CAM, GMCR, HANS, SWN, WAB, ESI, JEC, VAR, UYG, MOS, BUCY, ACN, DECK, USO, DOW, FAS, GS, AMX, BYI, IPI, CEDC, UNP, WFC, ZION, ATW, CHL, FLS, HEAT, CAT, BA, FCX, BAC, HLF, FUQI, POT, K, MHS, PWRD, WMT, MCD, CGA, UNG Moving Above 30 DMA = 2 AMD, CGA Moving Below 30 DMA = 1 BKC Staying Below 30 DMA BDX, HDB, ICE, MYGN, WCG, VPRT, GME, MELI, SPG, PCLN, FAZ Intermediate Term Market Trend: Up Short Term Market Trend: Up