SPX Fails to Break Friday's R1...Holding at Support...

DJIA 10,194.29 -2.57 -0.03% SP500 1,092.17 -4.61 -0.42% COMPQ 2,203.44 -7.07 -0.32% Russell 2000 612.16 -5.95 -0.96% Exchange NYSE NASD Advancing 1,094 890 Declining 1,952 1,805 Oil $74.71 -0.55 Gold $1,098.30 +1.90 SOX 333.52 -0.66 VIX 24.55 -0.86 The VIX moved down and did NOT confirm the move down in the SPX on Tuesday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLU +0.40%…XLY +0.14%...XLP -0.11% Weakest Sectors: XLF -1.75%...XLB -1.41%...XLE -0.64% Seven of nine sectors moved lower on Tuesday as sellers stepped in during the last two hours of the day to erase a 7 point gain in the SPX. Utilities, Consumer Discretionary, Consumer Staples and Technology were stronger than the SPX -0.42%. 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 Support held on Tuesday but the SPX was unable to break through Monday’s R1 resistance level and did not confirm Monday’s bullish harami. The SPX made a lower low by 0.32 point which makes Tuesday the low day. ALGT, BHI and ZION rose after earnings Tuesday morning while X fell on a larger than expected loss. After the Close ALTR +1.16, +5.47% YHOO +0.60, +3.75% Continue to watch earnings reaction this week. Wednesday’s Earnings to Watch: ABT, ATI, AMLN, BYI, FLEX, F, GD, GMCR, IVZ, LRCX, NFLX, QCOM, SWK, SYMC, UAUA, UTX VAR Guidance: The SPX closed just above the 1,090 support area for the third straight day. AAPL trading finished with a modest close. Traders apparently weren’t ready to move AAPL above recent resistance. If 1,090 support area breaks, the next level of SPX support is 1,075 and then 1,050. Be prepared to trade accordingly. 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 +2.86 QCOM -0.02 GOOG +2.42 BIDU +4.22 NDX 100 stocks weaker than the NDX include: FLEX, NVDA, SIAL, DELL, JOYG, CMCSA, GILD, DISH, INTC, STLD, ADSK, RYAAY, LLTC and DTV. NDX 100 stocks stronger than the NDX include: FSLR, CTXS,STX, EXPE, PPDI, ROST, APOL, EBAY, AMGN, AAPL, LOGI, CEPH,WCRX, BIDU, SHLD, NWSA, URBN, YHOO, PCLN, COST, CTSH, BIIB, SBUX, MSFT, VRSN and CA. Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA ALGT, UAUA, CBST, SNDK, AMED, GMCR, HANS, ESI, VAR, BA, BYI, CEDC, ZION, K, MCD, FAZ, CHL, DLB Moving Above 30 DMA = 0 Moving Below 30 DMA = 2 JEC, WFC Staying Below 30 DMA ACN, FLS, TDG, UNG, 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