RUT and NASDQ Rises While SPX Pulls Back...

DJIA 10,099.14 -45.05 -0.44% SP500 1,075.51 -2.96 -0.27% COMPQ 2,183.53 +6.12 +0.28% Russell 2000 610.72 +5.26 +0.87% Exchange NYSE NASD Advancing 1,614 1,576 Declining 1,393 1,076 Oil $74.13 -1.15 Gold $1,089.50 -4.70 SOX 332.84 +1.80 VIX 22.73 -1.23 Index Direction Confirmation VIX Down Yes – SPX SOX Up Yes – COMPQ Strongest Sectors: XLK +0.19%…XLF +0.07%...XLE +0.04% Weakest Sectors: XLI -0.79%...XLU -0.38%...XLV -0.23% Three of nine sectors moved higher on Friday. Technology, Financials, Energy, Consumer Discretionary, Consumer Staples, Materials and Healthcare were stronger than the SPX -0.27%. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLI, XLU Horizontal Breakout: Sideways: XLF, XLE Down Trending: Key Resistance Levels: 1,075 = 875 Breakout Chart Target 1,082 = Nov 9 S1 level 1,087 = Nov 10 Channel low 1,101 = October High Key Support Levels 1,044 - 1,050 = Oct 08 High This past saw wide daily trading ranges on the SPX and other indexes while at the same time bouncing off support and heading higher. On the weekly chart the SPX formed a bullish harami after four straight black candles or down weeks. Look at these Charts… (click image to enlarge) We like the look of these charts going into options expiration week. Watch for continued support bounces from these stocks. (click image to enlarge) Guidance: The SPX closed just below its 10 DMA, while both the COMPQ and RUT closed above. The short term trend is up. The four-month trend is sideways. The twelve-month trend is up. Growing bullish technical evidence suggests it would be wise to prepare for a support bounce continuation. A support bounce following a four week down trend is going to look like a bear flag pattern, however keep in mind that many stock charts have been forming reversal patterns including a short term double bottom. Continue to focus on and trade setups in the direction of the trend on the charts of the stocks you watch and follow your rules. Stay prepared however for a break of support. If you have not yet been stopped out of your up trending positions, continue to raise your stops. AAPL +1.71 QCOM +0.83 GOOG -3.28 BIDU +0.54 NDX 100 stocks stronger than the NDX include RIMM, NIHD, QCOM, INTC, APOL, STLD, MRVL, NWSA, NVDA, FSLR, ILMN, LINTA, TEVA, BRCM, ALRT, AAPL, GENZ, DISH, LRCX, VRTX, MXIM,ORLY, KLAC, ISRG, HSIC, GILD, LIFE, ROST and XLNX. Stocks to Watch on Tuesday Holding Above 30 DMA ALGT, CBST, ZION, FAZ, DLB, NFLX, AMED, CHL, BA, GMCR, MCD, UAUA, AGU, BKC, CAM, CEDC, CREE, V, VPRT, WHR, WLT Moving Above 30 DMA = 1 POT Moving Below 30 DMA = 0 Staying Below 30 DMA VAR, K, MYGN, TDG, WFC, WMT, GR, ESI, SNDK, DECK, HANS, JEC, MA, BYI, ACN, FLS, UNG, BUCY, DE, DOW, FAS, HLF, SYNA, UNP, UYG, X, ATW, HDB, MHS, MOS, PCP, URE, GS, HEAT, CAT, FCX, BAC, DHR, FUQI, ICE, IPI, SWN, USO, WAB, USD, PWRD, AMD, AMX, CGA, GES, MON, TSL, BDX, WCG, SPG, GME, MELI, PCLN Intermediate Term Market Trend: Neutral = 3 months, Up = 10 month Short Term Market Trend: Up