SPX Support Bounce Continues on Tuesday...

DJIA 10,296.85 +111.32 +1.09% SP500 1,103.32 +14.13 +1.30% COMPQ 2,190.06 +18.86 +0.87% Russell 2000 614.05 +4.80 +0.79% Exchange NYSE NASD Advancing 2,349 1,509 Declining 700 1,170 Oil $76.20 +1.77 Gold $1,117.40 +13.10 SOX 328.70 +2.98 VIX 21.48 -1.11 Index Direction Confirmation VIX Down Yes – SPX SOX Up Yes – COMPQ Strongest Sectors: XLV +2.07%…XLI +1.91%...XLP +1.44% Weakest Sectors: XLB +0.32%...XLU +0.81%...XLF +0.96% All nine sectors moved higher on Tuesday. Healthcare, Industrials, Consumer Staples, Consumer Discretionary and Energy were stronger than the SPX +1.30%. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE, XLI, XLU Horizontal Breakout: XLF Sideways: Down Trending: SPX 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 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 CREE broke the high of the inside day but still has not broken the high of the low day. If you used the inside day you may have entered your homework virtual trade. If not you are still waiting for the break of the high of the low day. ATI, FCX, X, AKS, TIE and AA moved higher from their lower low. Financials IVZ, STT, GS, MS, TROW, ICE, PRU, KEY and SPG moved higher on Tuesday. ZION was flat down 1 cent. Semis MRVL, MU, WFR, LLTC, STM, SNDK, NVLS, TER and NSM also moved higher. Stocks continuing a support bounce: GR, PCP, ZION Stocks confirming bullish haramis: BA, DE, DHR, POT, MOS, SNDK Stocks moving above the High of the Low Day: AGU, AMED, CHL, FLS, IPI, MCD, PCLN, SPG, UNG Stocks with earnings still to come include: DECK, DLB, K, MA, MYGN and WLT. After Earnings WHR +6.17 or +8.11% HOLX +1.33 or +8.72% DOW -1.06 or -3.70% Guidance: The SPX broke through the 1,090 resistance and rose to 1,103 the R1 of the Jan 22 large black candle. This is a key short term resistance. If the SPX gets through 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 up. The multi-week trend is sideways. The multi-month trend is up. The SPX and other broad indexes continued to bounce on Tuesday. You may have been stopped out today on certain down trending positions on the strength of the SPX and INDU rally. If 1,103 is broken expect this support bounce to continue but watch for potential bear flags if the two day rally can’t break through short term resistance. 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 +1.13 QCOM -0.51 GOOG -1.90 BIDU +0.50 NDX 100 stocks stronger than the NDX include: HOLX, FLEX, STX, FWLT, FAST, WCRX, MICC, CEPH, VRTX, NTAP, XRAY, GENZ, MXIM, RIMM, ORCL, GRMN, CMCSA, JOYG, SPLS, ISRG, LIFE, LINTA, PDCO, ERTS, BIIB, BRCM, NWSA, ALTR, HSIC, BBBY, STLD, ESRX, ATVI, TEVA, ORLY, ILMN and LRCX. Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA ALGT, CBST, AMED, GMCR, VAR, BA, CEDC, ZION, K, FAZ, DLB, WFC, NFLX, VPRT, CHL, MCD, CREE Moving Above 30 DMA = 4 GR, TDG, UAUA, WHR 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, WMT, BKC, WAB, USD, PWRD, AMD, AMX, CGA, GES, MON, POT, TSL, BDX, MYGN, WCG, SPG, GME, MELI, PCLN Intermediate Term Market Trend: Neutral = 3 months, Up = 10 month Short Term Market Trend: Up