SPX New High...VIX New Low...

DJIA 10,618.19 + 11.33 +0.11% SP500 1,144.98 + 3.29 +0.29% COMPQ 2,317.17 + 17.12 +0.74% Russell 2000 644.56 + 2.59 +0.40% Exchange NYSE NASD Advancing 1,851 1,691 Declining 1,177 1,000 Oil $83.25 +0.59 Gold $1,138.20 +5.10 SOX 367.68 +5.38 VIX 18.13 -0.93 The VIX moved down and did confirm the move up in the SPX on Friday. Friday was the lowest close in the VIX since May 13, 2008, a 19 month low. The SOX moved up and did confirm the move up in the COMPQ. Strongest Sectors: XLI +1.60%…XLB +1.39%...XLK +0.66% Weakest Sectors: XLF -0.59%...XLP -0.34%...XLU -0.10% Five of nine sectors moved higher on Friday. Industrials, Materials, Technology, and Energy were stronger than the SPX +0.29%. 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. This does not mean the market won't pull back. Technical analysis measuring techinques are not certainties. 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 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 On Friday the SPX, COMPQ, RUT and INDU all closed at their highest level in over 15 months completing a strong first week of trading for 2010. The COMPQ led on Friday with a gain of +0.74% while the RUT led for the week up +3.1%. Look at these Charts… (click image to enlarge) Weekly Returns RUT +3.1% SPX +2.7% COMPQ +2.1% INDU +1.8% Major technology stocks AAPL, AMZN, GOOG and PCLN that have led the up trend for most of 2009 were weak this week and hit lows on Friday when buyers appeared with a support bounce in each of these stocks, which helped the COMPQ rally and lead the other broad indexes on Friday. AAPL +1.40 QCOM +0.49 GOOG +7.92 BIDU -0.36 Look at these Charts… (click image to enlarge) Guidance: Look for the intermediate term up trend to continue as we move into Earnings Season with AA reporting on Monday and Options Expiration this next Friday. Be mindful of the potential for a pause or pull back. Look at the Charts from our Stocks to Watch list: (click image to enlarge) You can see why we remind you almost each trading day to: 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. XLF paused on Thursday after reaching a horizontal resistance level and pulled back slightly on Friday. XLF continues to be the key to the SPX trend following through to the upside. Look at these NDX Leading Charts… (click image to enlarge) NDX 100 stocks stronger than the NDX include GENZ, GRMN, FWLT, TEVA, LOGI, STLD, AMAT, JOYG, ESRX, ADSK, LBTYA, JBHT, CTSH, CTXS, AMZN, INTU, LRCX, CELG, SPLX, BIIB, PDCO, ERTS, ALRT, DISH, MICC, KLAC, XLNX, CHRW, GOOG, LLTC, ORCL, EBAY, ILMN, MRVL, SRCL, INTC, EXPD, CA, FAST, QCOM, CTAS, AMGN and DELL. Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA CREE, DLB, DE, WCG, ALGT, BDX, TSL, AFAM, GR, SYNA, PCP, AGU, MON, TDG, X, NTLS, NIHD, URE, BLUD, GES, USD, BKC, CBST, SNA, SNDK, MYGN, AMED, CLB, GMCR, UNG, HANS, SWN, CAM, CTSH, WAB, ESI, JEC, MOS, UYG, VAR, AAPL, JOSB, ACN, DOW, DECK, SLGN, FAS, USO, GS, JCOM, ATW, AMX, BYI, CHL, CEDC, HDB, HEAT, IPI, JOYG, CGA, FLS, FUQI, HLF, DV, ICE, K, MHS Moving Above 30 DMA = 2 EBAY, PWRD Moving Below 30 DMA = 0 Staying Below 30 DMA VPRT, GME, MELI, AMZN, PCLN, MCD, WMT, FAZ Intermediate Term Market Trend: Up Short Term Market Trend: Up