SPX Closes February Up 30 Points for the Month...

DJIA 10,325.26 +4.23 +0.04%
SP500 1,104.49 +1.55 +0.14%
COMPQ 2,238.26 +4.04 +0.18%
Russell 2000 628.56 -1.90 -0.30%

Exchange NYSE NASD
Advancing 1,810 1,253
Declining 1,227 1,440

Oil $79.66 +1.49
Gold $1,118.30 +10.50
SOX 338.86 +0.47
VIX 19.50 -0.60

Index Direction Confirmation
VIX Down Yes – SPX
SOX Up Yes – COMPQ

Strongest Sectors: XLF +0.62%…XLI +0.38%...XLE +0.23%
Weakest Sectors: XLU -0.78%...XLP -0.48%...XLB +0.03%

Seven of nine sectors moved higher on Friday. Financials, Industrials, Energy and Consumer Discretionary were stronger than the SPX +0.14%.

Sector Watch
Up Trending: XLK, XLY, XLV, XLI
Horizontal Breakout:
Sideways: XLF, XLE, XLU, XLP, XLB
Down Trending:

Key Resistance Levels:
1,105 - 1,113 = November High
1,119 = December High
1,025 - 1,133 = 1,075 BO chart target - Sep 08 Low

Key Support Levels
1,101 = October High
1,087 = Nov 10 Channel low
1,082 = Nov 9 S1 level
1,075 = 875 Breakout Chart Target

The SPX, INDU and COMPQ pulled back this week in a bull flag pattern and formed a hammer on Thursday. The SPX and COMPQ bounced on Friday and closed above the body of Thursday’s hammer for confirmation. The bounce and close above Thursday’s close can be seen in the 5-day line chart.

(click image to enlarge)

Over the past three weeks buyers have entered at higher support levels. On February 5 buyers entered at the 1,044 support level. From February 9 to 12 buyers entered at the 1,060 support area. On Thursday February 25, buyers entered and created support at 1,086. Buyers’ willingness to enter at successively higher support levels and the hammer confirmation on Friday suggest that the rally of the past three weeks is likely to go higher.

The rising support levels of the past three weeks can be seen clearly in the 3-month line chart

(click image to enlarge)

Guidance:
Friday’s spinning top confirmed Thursday’s hammer on the SPX and COMPQ.

The SPX closed just above the 1,100 short term support level at 1,104. The February 19 high of 1,112 is short term resistance and 1,087 is the next level of short term support, which did hold on Thursday forming a higher low.

Thursday may have been the low of this pull back.

The short term 3-week trend is up.
The four-month trend is sideways.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules.

The counter trend pull back of the past week appears to have confirmed on Friday that it is a bull flag pull back.

Adjust your stops according to your rules for up and down trending trades.

AAPL +2.62

QCOM -0.49

GOOG +0.37

BIDU +9.81

NDX 100 stocks stronger than the NDX include WCRX, LBTYA, MICC, HANS, FSLR, AKAM, JBHT, STX, BIDU, HOLX, CMCSA, LINTA, RIMM,STLD, AAPL, PCLN, WYNN, FLIR, LOGI, GENZ, JOYG, URBN, VRTX, ISRG, DTV, CEPH, RYAAY, ESRX, KLAC, CERN, SIAL, MRVL, AMGN, FISV, DISH, PAYX, YH00, XRAY, LRCX, CTXS, GILD and CELG.

Stocks to Watch on Monday
Holding Above 30 DMA

ALGT, CBST, DLB, NFLX, AMED, CHL, BA, MCD, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, ZION, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, FUQI, MELI, CEDC, POT

Moving Above 30 DMA = 11

FLS, HDB, HLF, MHS, MYGN, VAR, PWRD, CGA, IPI, FCX, ATI

Moving Below 30 DMA = 1

BYI

Staying Below 30 DMA

BKC, GS, DOW, MOS, WAB, WFC, SYNA, TSL, AMX, FAZ, K, MA, ACN, UNG, ATW, HEAT, SWN, AMD, MON, WCG, GME

Intermediate Term Market Trend: Neutral = 4 months, Up = 11 month

Short Term Market Trend: Neutral