SPX Settles Back to Tuesday's S1 Level...

DJIA 10,270.55 -26.30 -0.26% SP500 1,097.28 -6.04 -0.55% COMPQ 2,190.91 +0.85 +0.04% Russell 2000 610.66 -3.39 -0.55% Exchange NYSE NASD Advancing 1,169 1,097 Declining 1,861 1,545 Oil $76.90 -0.33 Gold $1,111.40 -6.00 SOX 327.75 -0.95 VIX 21.60 +0.12 Index Direction Confirmation VIX Up Yes – SPX SOX Down No – COMPQ Strongest Sectors: XLK +0.23%…XLY +0.07%...XLI -0.60% Weakest Sectors: XLV -1.34%...XLB -1.15%...XLF -1.09% Only two of nine sectors moved higher on Wednesday. Technology and Consumer Discretionary were stronger than the SPX -0.55%. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE, XLI, XLU Horizontal Breakout: XLF Sideways: Down Trending: Key Resistance Levels: 1,101 = October High 1,105 - 1,113 = November High 1,119 = December High 1,025 - 1,133 = 1,075 BO chart target - Sep 08 Low 1,145 = 1,133 BO chart target – Dec 31 Low 1,155 = chart target Key Support Levels 1,087 = Nov 10 Channel low 1,082 = Nov 9 S1 level 1,075 = 875 Breakout Chart Target 1,050 = Oct 08 High Large Nasdaq stocks AAPL, QCOM, AMZN, GOOG, BIDU, PCLN, ISRG and FSLR all had an up day and were among leading NDX stocks. This is the first day in a while that this has happened. This lifted the COMPQ into positivie territory at the close. CREE broke the high of the on Wednesday. So if you took the homework challenge you are in a virtual trade. The first step is buying when you are supposed to buy. Set the stop and know the target. Material stocks including steel stocks ATI, FCX, X, AKS, TIE and AA pulled back on Wednesday. Financial stocks were also mostly lower with GS and ICE up slightly for the day. Semis MRVL, STM, NVLS and NSM also moved higher. Stocks in a support bounce pulling back to S1: GR, PCP Stocks rising after confirming a bullish harami: POT, MOS Stocks still above the High of the Low Day: AGU, CHL, FLS, IPI, MCD, PCLN, SPG, UNG, USO Stocks with earnings still to come include: DE, DECK, DLB, K, MA, NVDA, WLT After Earnings SWK +2.09 or +3.85% (BDK) MYGN +0.73 or +3.04% DLB +1.81 or +3.62% in after hours trading STLD -0.82 or -5.15% in after hours trading Guidance: The SPX paused at 1,103 the R1 of the Jan 22 large black candle. The positive here is that the pause stay above 1, 096 the S1 of Tuesday’s large white candle. Generally a pull back that stays above the recent S1 is positive for the short term trend. If the SPX gets through the Jan 22 R1 look for it to rise to the next resistance level of 1,113 to 1,119, which is also the area of the 30 DMA. The short term trend is neutral after Wednesday’s pause. The multi-week trend is sideways. The multi-month trend is up. The SPX and other broad indexes paused on Wednesday. If 1,103 is broken expect this support bounce to continue but watch for potential bear flags if Tuesday’s S1 is broken. Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules. Many stocks have shifted to a sideways trend and still offer support bounce trades just not from a higher low. There are still some up trending stocks. If you have not yet been stopped out of your up trending positions, continue to raise your stops. AAPL +3.37 QCOM +0.37 GOOG +9.70 BIDU +23.60 NDX 100 stocks stronger than the NDX include: NWSA, BIDU, RIMM, IACI, GENZ, ATVI, PCLN, YHOO, GOOG, AAPL, MRVL, JBHT, SRCL, FSLR, STX, MCHP, FISV, ERTS, APOL, XLNX, CELG, QCOM, NVDA, AMZN FLEX, KLAC, EBAY, CHKP, MSFT, ALTR, AKAM and DELL. Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA ALGT, CBST, AMED, GMCR, VAR, BA, CEDC, ZION, K, FAZ, DLB, WFC, NFLX, VPRT, CHL, MCD, CREE, GR, TDG, UAUA, WHR Moving Above 30 DMA = 2 MYGN, WMT Moving Below 30 DMA = 0 Staying Below 30 DMA ESI, SNDK, DECK, HANS, JEC, MA, BYI, ACN, FLS, UNG, BUCY, DE, DOW, FAS, HLF, SYNA, UNP, UYG, X, ATW, CAM, HDB, MHS, MOS, PCP, URE, GS, HEAT, CAT, FCX, BAC, DHR, AGU, FUQI, ICE, IPI, SWN, USO, WLT, BKC, 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: Neutral