SPX Pauses at Resistance...

DJIA 10,383.35 -18.97 -0.18%
SP500 1,108.01 -1.16 -0.10%
COMPQ 2,242.03 -1.84 -0.08%
Russell 2000 632.63 +0.63 +0.10%

Exchange NYSE NASD
Advancing 1,519 1,429
Declining 1,541 1,268

Oil $80.25 +0.19
Gold $1,112.60 -8.70
SOX 342.55 -0.99
VIX 19.94 -0.08

Index Direction Confirmation
VIX Down No – SPX
SOX Down Yes – COMPQ

Strongest Sectors: XLF +1.31%…XLI +0.07%...XLP +0.00%
Weakest Sectors: XLE -1.38%...XLU -0.54%...XLB -0.43%

Two of nine sectors moved higher on Monday. Financials, Industrials, Consumer Staples and Consumer Discretionary were stronger than the SPX -0.10%.

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

The SPX, INDU and COMPQ formed spinning tops above their 30 DMA as the broad indices were near unchanged. The SPX closed at 1,108 in the area of its horizontal resistance area,

Financial stocks led the market today as RF, PNC, KEY, WFC, ZION, BAC, JPM, USB, SPG, C and MS all moved more than 1% for the day.

Energy stocks were weak keeping the SPX just below even for the day.

CREE, X and STX moved slightly higher while BUCY was down slightly on Monday.

Guidance:
Monday is the new high day in the recent support bounce. 1,100 is the short term support level, just below Monday’s low. Short term resistance is 1,115. If resistance is broken look for a move to the next resistance level in the 1,130 area.

If support is broken protect your profits and look for a pull back to a higher low.

The short term 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.

Be alert on short term trades to the potential for the formation of a bull flag pull back; raise your stops according to your rules.

AAPL -1.25
QCOM -0.58
GOOG +2.03
BIDU +7.00

NDX 100 stocks stronger than the NDX include LBTYA, GRMN, ORCL, TEVA, APOL, MICC, BIDU, JBHT, WYNN, CHRW, CMSCA, STX, VRSN, DISH, PDCO, EXPD, SHLD, RYAAY, SRCL, CERN, HOLX, NIHD, CEPH, FAST, STLD, AMZN, GOOG, ADSK, MXIM, LIFE, INTC, DTV, PAYX, PPDI and NVDA.

Stocks to Watch on Tuesday
Holding Above 30 DMA
ALGT, CBST, DLB, NFLX, AMED, CHL, BA, GMCR, MCD, UAUA, AGU, BKC, CAM, CEDC, CREE, VPRT, WHR, WLT, POT, BDX, BUCY, CAT, GR, ICE, MOS, PCLN, PCP, SPG, SWK, UNP, USD, USO, V, BAC, DE, DHR, ESI, MHS, SNDK, URE, DOW, FLS, GES, HANS, JEC, MELI, TDG, X, IPI, FCX, ZION
Moving Above 30 DMA = 6
FAS, UYG, VAR, WAB, WFC, WMT
Moving Below 30 DMA = 2
DECK, SYNA
Staying Below 30 DMA
TSL, AMX, FAZ, K, MYGN, MA, BYI, ACN, UNG, HLF, ATW, HDB, GS, HEAT, FUQI, SWN, PWRD, AMD, CGA, MON, WCG, GME

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