SPX Rises...

DJIA 10,144.19 +105.81 +1.05% SP500 1,078.47 +10.34 +0.97% COMPQ 2,177.41 +29.45 +1.38% Russell 2000 605.46 +9.64 +1.62% Exchange NYSE NASD Advancing 2,343 1,989 Declining 696 686 Oil $75.28 +0.76 Gold $1,094.20 +18.40 SOX 331.04 +7.64 VIX 23.96 -1.44 Index Direction Confirmation VIX Down Yes – SPX SOX Up Yes – COMPQ Strongest Sectors: XLB +1.70%…XLE +1.70%...XLI +1.50% Weakest Sectors: XLF +0.22%...XLU +0.59%...XLV +0.68% All nine sectors moved higher on Thursday. Materials, Energy, Industrials, Consumer Discretionary and Technology were stronger than the SPX +0.97%. 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 1,105 - 1,113 = November High Key Support Levels 1,044 - 1,050 = Oct 08 High The question I posed on Wednesday was who is expecting a strong rally now? What a difference a day a day can make. Many stocks in our watch list had strong gains bouncing up from support on Thursday. Guidance: The SPX bounced up from support and crossed its 10 DMA on Thursday and had in highest close in more than week. The SPX formed a bullish engulfing pattern on Wednesday’s spinning top. The short term trend is up. The four-month trend is sideways. The twelve-month trend is up. With Thursday’s support bounce more stocks are beginning to cross above their 30 DMA and resume their up trend. 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. Growing bullish technical evidence suggests it would be wise to prepare for a potential support bounce similar to the bounces in July and November of last year. See the above charts. If you have not yet been stopped out of your up trending positions, continue to raise your stops. AAPL +3.55 QCOM +0.58 GOOG +1.95 BIDU +5.33 NDX 100 stocks stronger than the NDX include: ATVI, WYNN, JOYG, MRVL, NVDA, STLD, FSLR, NIHD, LRCX, RIMM, ILMN, YHOO, ALTR, PPDI, NWSA, NTAP, TEVA, ADSK, CHRW, ISRG, CERN, BIIB, FLEX, AMZN, PCAR, BRCM,KLAC, BBBY, INFY, XLNX, ESRX, LLTC, MICC, VRSN, LINTA, FISV, MCHP, ROST, AMAT, WCRX, INTC, FWLT, AAPL, CTSH, GILD, AKAM, GRMN, SPLS and VRTX. Stocks to Watch on Friday Holding Above 30 DMA ALGT, CBST, ZION, FAZ, DLB, NFLX, AMED, CHL, BA, GMCR, MCD, UAUA, AGU Moving Above 30 DMA = 8 BKC, CAM, CEDC, CREE, V, VPRT, WHR, WLT 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, POT, TSL, BDX, WCG, SPG, GME, MELI, PCLN Intermediate Term Market Trend: Neutral = 3 months, Up = 10 month Short Term Market Trend: Up