SPX Breaks Support....

DJIA 10389.88 -213.27 -2.01% SP500 1,116.48 -21.56 -1.89% COMPQ 2,265.70 -25.55 -1.12% Russell 2000 628.36 - 11.25 -1.76% Exchange NYSE NASD Advancing 651 Declining 2,410 2,015 Oil $76.20 -1.85 – March contract Gold $1,103.00 -10.00 – February contract SOX 347.91 -1.89 VIX 22.27 +3.59 The VIX moved up and did confirm the move down in the SPX on Thursday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLK -1.06%…XLY -1.27%...XLP -1.42% Weakest Sectors: XLB -4.33%...XLF -2.85%...XLI -2.32% All nine sectors moved lower on Thursday as selling continued from Wednesday. Technology, Consumer Discretionary, Consumer Staples and Utilities were stronger than the SPX -1.89%. 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. As we stated last week without good earnings reaction we considered unlikely the end of January time target would be reached. That conclusion appears more apparent after Thursday’s trading. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE, XLI, XLU Horizontal Breakout: XLF Sideways: Down Trending: Key Resistance Levels: 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 1,119 = 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 Downward momentum accelerated in the SPX, INDU and RUT on Thursday, while it actually slowed in the COMPQ. The President’s proposal for overhauling banks by limiting the size and complexity to avoid future financial bailouts sent major bank stocks lower including JPM, BAC, GS and MS fell. WFC and smaller banks ZION, RF, KEY and USB rose on Thursday. Better than expected earnings generated increased buying in EBAY, STX, UNP and SBUX. GOOG moved over 26 points lower in after-hours trading after reporting earnings of $6.79 vs. 6.50 estimates. Continue to watch earnings reaction this week and next week. ZION rose another 44 cents or +2.46% in front of earnings on Jan 25. Guidance: The SPX broke 1,130 support and fell to the next support level at 1,115. If 1,115 support breaks the next level of SPX support is 1,105. 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 -3.65 QCOM -0.26 GOOG +2.57 BIDU +0.30 NDX 100 stocks stronger than the NDX include: EBAY, STX, XLNX, ALTR, SBUX, PCLN, AMZN, GOOG, MRVL, BRCM, APOL, HOLX, FLIR, VRSN, EXPE, ERTS, EXPD, PPDI, FLEX BIDU, HSIC CHRW, CTXS, ORLY, SRCL, LINTA, CELG, ADP and QCOM. Stocks to Watch on Friday Leading Stocks Holding Above 30 DMA MA, DLB, DE, ALGT, SYNA, TDG, X, UAUA, CBST, SNDK, AMED, GMCR, HANS, ESI, JEC, VAR, UYG, BUCY, ACN, DECK, DOW, FAS, WFC, BA, BYI, CEDC, CHL, ZION, FLS, HLF, K, MHS, MCD Moving Above 30 DMA = 1 UNP Moving Below 30 DMA = 15 ATW, CAM, HDB, MHS, MOS, PCP, GR, URE, GS, HEAT, WHR, CAT, FCX, BAC, DHR Staying Below 30 DMA AGU, FUQI, ICE, IPI, SWN, USO, WLT, WMT, UNG, BKC, WAB, USD, PWRD, AMD, AMX, CGA, GES, MON, POT, TSL, BDX, MYGN, WCG, SPG, VPRT, GME, MELI, PCLN, FAZ, NFLX Intermediate Term Market Trend: Up Short Term Market Trend: Down