SPX Pulls Back from Resistance...

DJIA 10,282.41 -100.41 -0.97%
SP500 1,094.60 -13.41 -1.21%
COMPQ 2,213.44 -28.59 -1.28%
Russell 2000 625.07 -7.18 +1.14%

Exchange NYSE NASD
Advancing 939 896
Declining 2,128 1,768

Oil $78.86 -1.45
Gold $1,102.60 -10.00
SOX 332.87 -9.68
VIX 21.37 +1.43

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

Strongest Sectors: XLP -0.55%…XLY -0.60%...XLU -0.68%
Weakest Sectors: XLF -1.84%...XLE -1.66%...XLB -1.59%

All nine sectors moved lower on Tuesday. Financials, Energy, Materials, Industrials and Technology were weaker than the SPX -1.21%.

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

Key Resistance Levels:
1,101 = October High
1,105 - 1,113 = November High
1,119 = December High
Key Support Levels
1,087 = Nov 10 Channel low
1,082 = Nov 9 S1 level
1,075 = 875 Breakout Chart Target
1,044 - 1,050 = Oct 08 High

The SPX, INDU, COMPQ and RUT all broke the low of the high day giving the potential exit signal for bullish short term trades and potential entry signal for short term bearish counter trend trades. The SPX broke short term horizontal support and closed 1,094.
Financial, Energy and Material stocks led the market lower on Tuesday with MELI, HEAT, USD, ATI, FAS, BUCY, X, SNDK FUQI, ZION, WLT, MHS, FCX, UYG and CREE falling more than 3% each.

FAZ, WCG, BYI, BKC, BDX, UAUA and MCD moved higher today.

Guidance:
Tuesday was the classic break the low of the high day exit for short term trades and a classic entry for short term counter trend bearish trades.

The 1,100 short term support level was broken today and 1,087 is the next level of short term support.

Support was broken and we hope you did protect your profits. Now look for a pull back to a potential higher low.

The short term trend is down.
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.

If you trade the counter trend down, stay alert to the potential of this counter trend move forming a bull flag pull back.

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

AAPL -3.35
QCOM -0.47
GOOG -7.73
BIDU -5.45

NDX 100 stocks stronger than the NDX include EXPD, APOL, WYNN, IACI, CEPH, DISH, VRSN, EXPE, JBHT, XRAY, RYAAY, HSIC, HOLX, CTSH, ROST, CMCSA, ORLY, CTXS and COST.

Stocks to Watch on Wednesday
Holding Above 30 DMA
ALGT, CBST, DLB, NFLX, AMED, CHL, BA, MCD, UAUA, AGU, BKC, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, DOW, HANS, JEC, ZION, WMT
Moving Above 30 DMA = 1BYI
Moving Below 30 DMA = 20
FLS, GES, GMCR, MHS, MOS, TDG, VAR, WAB, FAS, UYG, X, USD, MELI, IPI, CEDC, SNDK, POT, FCX, WFC, ATI
Staying Below 30 DMA
DECK, SYNA, TSL, AMX, FAZ, K, MYGN, MA, 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: Down