SPX Pulls Back From Resistance...Stays in Trading Range...

DJIA 10,856.79 -50.79 -0.47%
SP500 1,169.43 -3.84 -0.33%
COMPQ 2,397.96 -12.73 -0.53%
Russell 2000 678.64 -5.30 -0.77%

Exchange NYSE NASD
Advancing 1,222 1,014
Declining 1,820 1,681

Oil $83.75 +1.38
Gold $1,116.00 +11.50
SOX 366.57 -2.33
VIX 17.59 +0.46

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

Several companies including DE, BA, CAT, T, LMT and GR have reported charges to earnings as a result of the recent healthcare reform. Here’s an interesting aspect. The change does not take effect until 2013, but accounting rules require that the charges be recorded in the current quarter. This means the news that knocked many of these stocks down this week is not even a cash expense at this time, rather it is a future expense in 2013.

Look at these Charts

(click image to enlarge)

BBY, ADBE and QCOM are still at support setting up for potential support bounce.

Guidance:
The SPX closed at 1,169.43 forming a spinning top and making a lower high and lower low while staying inside the 1,160 – 1,180 trading range. The SPX has been in this trading range for the past 11 trading days.

The trading range pattern has occurred several times since the March 2009 low.

Markets are closed Friday for the three day Easter weekend. Expect trading volume to get lighter on Thursday.

Short term traders are still on Yellow Alert for a potential exit from the short term up trend only if price breaks support.

Continue to trade with the trend. Be mentally flexible and watch for a potential counter trend pull back if the chart breaks short term support.

The chart target is still 1,255 in approximately nine weeks after the 1,150 breakout on March 16.

The VIX rose +0.46 and did confirm the slightly lower close on Wednesday.

The short term trend is neutral.
The four-month trend is up.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch trade with the trend and follow your rules.

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

AAPL -0.84
QCOM -0.17
GOOG +0.41
BIDU -1.20
NDX 100 stocks stronger than the NDX include DTV, EXPE, PPDI, GRMN, DISH, HOLX, NIHD, CHKP, ORCL, LINTA, FLIR, JBHT, STX, CMCSA, FSLR, ROST, WCRX, DELL, VRSN, XRAY, CA, ATVI, ESRX, KLAC, HANS, AMAT, GOOG, LOGI, VRTX, FISV, IACI, STLD and CERN.

Stocks to Watch on Thursday

Holding Above 30 DMA
CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, UNP, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, ATI, WAB, GS, DOW, AMD, AMX, WFC, ACN, CEDC, MA, ZION, BKC, MCD, ALGT, GME, WCG, K, FCX, TSL, BYI, USO, CAM, IPI, SYNA
Moving Above 30 DMA = 1
MOS
Moving Below 30 DMA = 4
CHL, HEAT, STT, SWK
Staying Below 30 DMA
VPRT, AMED, PWRD, ATW, CGA, FUQI, SWN, FAZ, UNG, MON

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

Futures Point to a Lower Open...

BMO – ES -3.75 and NQ -6.00 futures are lower in pre-market trading pointing to a flat open. AAPL +0.40, AMZN -0.57, GOOG -4.41 and BIDU -1.08 are mostly lower in pre-market trading.

Pre-market trading is lower and suggests the market may pull back from resistance towards support. Many stocks are also showing little or no early movement.  Today is month end and we have the three day Easter weekend with the market being closed on Good Friday. The trend is still up and price is currently consolidating in the broad indexes.

It appears that trade opportunities many exist in the energy sector, ag stocks and some other stocks to the downside this morning.

We will continue to watch for a break of resistance or support for the next short term move. Meanwhile we will trade those charts that meet our rules in the direction of the trend.

The Euro is up 67 pips in overnight trading. Oil is quoting up 77 cents in electronic trading. XLE is up 15 cents in pre-market trading.

SPY is down 34 cents in pre-market trading. XLF is down 9 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

Look at these Charts
IPI, USO, NFLX, ATI


SPX
Support = 1,165, 1,150, 1,139
Resistance = 1,178, 1,216

Trading Down: FAS, HEAT, GS, X, FCX, V, CAT, SNDK
Trading Up: IPI, USO, FUQI, MON, FAZ

At the Open on Wednesday
SPY –
QQQQ –
FAS –
X –
ADBE –
BBY –
QCOM –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
NFLX –
RIMM –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CLF –

SPX Holds Nears Resistance...

DJIA 10,907.56 +11.56 +0.11%
SP500 1,173.27 +0.05 +0.00%
COMPQ 2,410.69 +6.33 +0.26%
Russell 2000 683.94 +1.69 +0.25%


Exchange NYSE NASD
Advancing 1,555 1,458
Declining 1,471 1,256


Oil $82.37 -0.03
Gold $1,104.50 -5.80
SOX 368.90 +2.53
VIX 17.13 -0.46

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

Strongest Sectors: XLK +0.43%…XLE +0.16%...XLB +0.15%
Weakest Sectors: XLF -0.62%...XLU -0.27%...XLY -0.09%

Six of nine sectors moved higher on Tuesday. Technology, Energy, Materials, Industrials and Consumer Staples were stronger than the SPX +0.00%.

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

Key Resistance Levels
1,178 = Fib extension
1,216 = Fib extension
Key Support Levels
1,155 = 1,119 BO chart target – Dec 23
1,145 = 1,133 BO chart target – Dec 31 Low

While the broad indices were near unchanged again on Tuesday many stocks like X, STX, WHR and GRMN moved lower while stocks like DHR, SYNA, IPI, NFLX and DECK moved higher.

Look at these Charts

(click image to enlarge)

BBY, ADBE and QCOM continue to set up for potential support bounces.

Guidance:

The SPX closed at 1,173.27 forming a doji and making a higher high and higher low while staying inside the 1,160 – 1,180 trading range. The SPX has been in this trading range for the past 10 trading days.

You should be used to this trading pattern having experienced now several times since the March 2009 low.

Markets are closed Friday for the three day Easter weekend. Expect trading volume to get lighter heading into the weekend.

Short term traders are still on Yellow Alert for a potential exit from the short term up trend only if price breaks support.

Continue to trade with the trend. Be mentally flexible and watch for a potential counter trend pull back if the chart breaks short term support.

The chart target is still 1,255 in approximately nine weeks after the 1,150 breakout on March 16.

The VIX fell -0.46 and did confirm the slightly higher close on Tuesday.

The short term trend is neutral.
The four-month trend is up.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch trade with the trend and follow your rules.

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

AAPL +3.45
QCOM +0.37
GOOG +4.26
BIDU -5.30
NDX 100 stocks stronger than the NDX include FSLR, HSIC, URBN, PPDI, AAPL, MRVL, LBTYA, LINTA, CMCSA, ATVI, AMZN, AMAT, XRAY, PDCO, QCOM, MXIM, KLAC, ALTR, GOOG, CERN, LRCX, LLTC, HANS, CTSH, VRSN, MSFT, JOYG, BBBY, SYMC, ERTS, RYAAY, CSCO, WYNN, DISH, FISV, CHKP, SIAL, NVDA, LIFE, ISRG, YHOO, AMGN, CHRW, FLIR, CA, and NIHD.

Stocks to Watch on Wednesday
Holding Above 30 DMA
CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR,SNDK, TDG, USD, UYG, X, DECK, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, ATI, WAB, GS, DOW, AMD, AMX, WFC, ACN, CEDC, MA, ZION, BKC, MCD, ALGT, GME, WCG, K, STT, FCX, TSL, BYI, USO
Moving Above 30 DMA = 5
CAM, CHL, HEAT, IPI, SYNA
Moving Below 30 DMA = 0


Staying Below 30 DMA
VPRT, AMED, MOS, PWRD, ATW, CGA, FUQI, SWN, FAZ, UNG, MON

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

Futures Point to a Flat to Slightly Higher Open...

BMO – ES +1.50 and NQ +3.00 futures are slightly higher in pre-market trading pointing to a higher open. AAPL +4.92, AMZN +0.68, GOOG +0.75 and BIDU +1.51 are higher in pre-market trading.

Pre-market trading is mixed this morning with some stocks trading lower but others trading higher like AAPL,  QCOM and DHR. The SPX continued to trade between 1,153 and 1,180 on Monday and Tuesday’s pre-market trading indicating a continuation of that pattern. So more consolidation as we head into month end and the three day Easter weekend. The trend is still up and price is currently consolidating in the broad indexes.

We will continue to watch for a break of resistance or support for the next short term move. Meanwhile we will trade those charts that meet our rules in the direction of the trend.

The Euro is down 7 pips in overnight trading. Oil is quoting up 15 cents in electronic trading. XLE is up 4 cents in pre-market trading.

SPY is up 9 cents in pre-market trading. XLF is up 1 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

Look at these Charts

(click image to enlarge)

SPX
Support = 1,165, 1,150, 1,139
Resistance = 1,178, 1,216

Trading Down: MYGN, UAUA, IPI, GME, SYNA, CAN, TSL, JEC, STT, CEPH, INFY
Trading Up: DHR, NFLX, AMED, MON, WLT, SNDK, GS, X, AMD, FCX, DE, BUCY, HEAT, AAPL, QCOM

At the Open on Tuesday
SPY –
QQQQ –
FAS –
X –
ADBE –
BBY –
QCOM –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
NFLX –
RIMM –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CLF –

SPX Moves Higher to Resistance...

DJIA 10,895.86 +45.50 +0.42%
SP500 1,173.22 +6.63 +0.57%
COMPQ 2,404.13 +9.23 +0.39%
Russell 2000 682.25 +3.28 +0.48%

Exchange NYSE NASD
Advancing 2,103 1,554
Declining 955 1,118

Oil $82.17 +2.17
Gold $1,110.30 +5.20
SOX 366.37 +3.48
VIX 17.59 -0.18

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

Strongest Sectors: XLE +1.94%…XLU +1.22%...XLB +1.07%
Weakest Sectors: XLF +0.13%...XLY +0.15%...XLK +0.30%

All nine sectors moved higher on Monday. Energy, Utilities, Materials, Healthcare and Industrials were stronger than the SPX +0.57%.

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

Key Resistance Levels
1,178 = Fib extension
1,216 = Fib extension
1,220 = Sep 25, 2008 resistance
Key Support Levels
1,155 = 1,119 BO chart target – Dec 23
1,145 = 1,133 BO chart target – Dec 31 Low

Guidance:

The SPX closed at 1,173.22 while making a higher high and higher low and closing less than one point below its recent closing high. The horizontal trading range is now 9 days long.

Short term traders are still on Yellow Alert for a potential exit from the short term up trend only if price breaks support.

Continue to trade with the trend. Be mentally flexible and watch for a potential counter trend pull back if the chart breaks short term support.

The chart target is still 1,255 in approximately nine weeks after the 1,150 breakout on March 16.

The VIX fell -0.18 and did confirm the higher close on Monday.

The short term trend is neutral.
The four-month trend is up.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch, trade with the trend and follow your rules.

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

AAPL +1.49
QCOM -0.07
GOOG -0.24
BIDU +7.13
NDX 100 stocks stronger than the NDX include EXPE, MICC, APOL, CEPH, STLD, FSLR, FWLT, MRVL, LRCX, JOYG, ISRG, LLTC, ESRX, CTAS, WCRX, PCLN, PDCO, NVDA, XLNX, BIDU, GILD, FLEX, SIAL, NIHD, SRCL, LIFE, EXPD, CHRW, XRAY, CMSCA, RIMM, AMGN, HOLX, AMAT, ADP, HISC, SHLD, KLAC, SYMC, ADBE, AAPL, NWSA, BRCM, CELG and LBTYA.

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

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

Futures Point to a Higher Open...

BMO – ES +3.00 and NQ +5.75 futures are higher in pre-market trading pointing to a higher open. AAPL +2.36, AMZN +0.89, GOOG +1.71 and BIDU +0.83 are higher in pre-market trading.

For eight days the SPX has traded between 1,153 and 1,180. On Friday, the SPX closed at 1,166 in the middle of that range. Friday’s trading was once again price fluctuation. Price action is once again in consolidation. The trend is still up although price is currently consolidating.

Dave’s Insight: Following rules does not eliminate price fluctuation.

We will be watching today for a break of resistance or support for the next short term move. Meanwhile we will trade those charts that meet our rules in the direction of the trend.

The Euro is down 25 pips in overnight trading. Oil is quoting up 70 cents in electronic trading. XLE is up 27 cents in pre-market trading.

SPY is up 55 cents in pre-market trading. XLF is up 10 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

Look at these Charts

(click image to enlarge)

SPX
Support = 1,165, 1,150, 1,139
Resistance = 1,178, 1,216

Trading Down: ICE, FAZ
Trading Up: PCP, FAS, SWN, PCLN, FCX, WLT, POT, ALGT, AMED, HDB, MOS, BUCY, GS, ATI, X, MON, V, IPI, TSL, CHL, USO, CAT, ESI, DE, WMT, UAUA, BA, BAC, WFC, AGU

At the Open on Monday
SPY –
QQQQ –
FAS –
X –
ADBE –
BBY –
QCOM –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –

SPX Opens Flat...Ends Flat...

DJIA 10,850.36 +9.15 +0.08%
SP500 1,166.59 +0.86 +0.07%
COMPQ 2,395.13 -2.28 -0.10%
Russell 2000 678.97 -0.13 -0.13%

Exchange NYSE NASD
Advancing 1,537 1,315
Declining 1,496 1,362

Oil $80.00 -0.53
Gold $1,100.90 +8.00
SOX 362.89 -1.94
VIX 17.77 -0.63

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

Strongest Sectors: XLB +0.75%…XLY +0.39%...XLI +0.26%
Weakest Sectors: XLV -0.75%...XLK -0.48%...XLE +0.04%

Seven of nine sectors moved higher on Friday. Materials, Consumer Discretionary, Industrials, Utilities and Financials were stronger than the SPX +0.07%.

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

Key Resistance Levels
1,178 = Fib extension
1,216 = Fib extension
Key Support Levels
1,155 = 1,119 BO chart target – Dec 23
1,145 = 1,133 BO chart target – Dec 31 Low

The broad indices were near unchanged on Friday after trading in a narrow range following the support bounce on Monday and Tuesday. One interesting observation in Friday’s trading action. The COMPQ was down slightly with the NDX up slightly. This small divergence was likely caused by strength in AAPL, RIMM, AMZN, BIDU, AMGN and a few other leading NDX stocks. Looks like institutions were doing end of quarter buying in a few of the first quarter winners.

Look at these Charts

(click image to enlarge)

Here’s a look at the YTD chart in the broad indexes on a weekly candle.

(click image to enlarge)

Going into next week, I like the setups on BBY, ADBE and QCOM with gaps this past week.

Guidance:

The SPX closed at 1,166.59 a non-confirmation of Thursday’s potential shooting star pattern while forming a spinning top with a lower high and lower low. This is not unusual in the narrow trading range of the past 8 days.

Short term traders are still on Yellow Alert for a potential exit from the short term up trend only if price breaks support.

Continue to trade with the trend. Be mentally flexible and watch for a potential counter trend pull back if the chart breaks short term support.

The chart target is still 1,255 in approximately nine weeks after the 1,150 breakout on March 16.

The VIX fell -0.63 and did confirm the slightly higher close on Friday.

The short term trend is neutral.
The four-month trend is up.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch trade with the trend and follow your rules.

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

AAPL +4.25
QCOM -0.36
GOOG -0.19
BIDU +4.39
NDX 100 stocks stronger than the NDX include FSLR, RYAAY, GENZ, URBN, WYNN, GRMN, RIMM, LOGI, AAPL, SBUX, ERTS, ATVI, YHOO, PPDI, SPLS, LBTYA, DELL, STLD, BIDU, ADP, AKAM, PCAR, FAST, PAYX, JOYG, ILMN, AMAT, NTAP, EXPE, AMGN, AMZN, DTV, FISV, BBBY and NWSA.

Stocks to Watch on Monday
Holding Above 30 DMA
CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, ATI, WAB, GS, DOW, AMD, AMX, WFC, ACN, CEDC, MA, ZION, BKC, MCD, ALGT, GME, WCG, K, STT
Moving Above 30 DMA = 3
FCX, IPI, TSL
Moving Below 30 DMA = 0

Staying Below 30 DMA
AMED, MOS, PWRD, USO, CHL, CAM, ATW, SYNA, CGA, FUQI, HEAT, SWN, BYI, FAZ, UNG, MON

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

Futures Point to a Slightly Higher Open...

Look at these Charts

(click image to enlarge)

BMO – ES +1.00 and NQ +3.50 futures are slightly higher in pre-market trading pointing to a higher open. AAPL +2.60, AMZN +0.75, GOOG +1.59 and BIDU -0.73 are mostly higher in pre-market trading.

On Thursday the SPX hit the 1,178 Fib extension price target, mad an intra-day high of 1,180.69 and then pulled back closing at 1,165. The selling was attributed to renewed concerns of the debt concerns in Greece. As is often the case with these news attributed selloffs, prices have rebounded this morning in pre-market. Apparently, the trend is still up.

Thursday is a good example why we constantly remind you to distinguish between price fluctuation and trend change.

We will be watching this morning to see if the cash markets will continue pre-market trading to the upside.

The Euro is up 73 pips in overnight trading. Oil is quoting up 55 cents in electronic trading. XLE is up 28 cents in pre-market trading.

SPY is up 22 cents in pre-market trading. XLF is up 8 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

SPX
Support = 1,165, 1,150, 1,139
Resistance = 1,178, 1,216

Trading Down: ACN, FAZ
Trading Up: MA, FAS, ALBUCY, WLT, JEC, IPI, POT, PCLN, FCX, CREE, GS, SWK, X, MOS, MON, MON, TSL, DE, GME, FUQI, SNDK, CHL, V, CAT, STT, WFC, BAC, USO, BA, AMD

At the Open on Friday
SPY –
QQQQ –
FAS –
X –
ADBE –
BBY –
QCOM –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –

SPX Rises and Pulls Back...Forms Potential Shooting Star...

DJIA 10,841.21 +5.06 +0.05%
SP500 1,165.73 -1.99 -0.17%
COMPQ 2,397.41 -1.35 -0.06%
Russell 2000 679.10 -4.58 -0.67%

Exchange NYSE NASD
Advancing 1,260 1,008
Declining 1,784 1,666


Oil $80.45 -0.16
Gold $1,092.00 +3.50
SOX 364.83 -0.54
VIX 18.40 +0.85


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

Strongest Sectors: XLY +0.58%…XLF +0.44%...XLK +0.17%
Weakest Sectors: XLB -1.99%...XLE -1.68%...XLU -0.64%

Three of nine sectors moved higher on Wednesday. Consumer Discretionary, Financials, Technology, Industrials and Consumer Staples were stronger than the SPX -0.17%.

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

Key Resistance Levels
1,178 = Fib extension
1,216 = Fib extension
Key Support Levels
1,155 = 1,119 BO chart target – Dec 23
1,145 = 1,133 BO chart target – Dec 31 Low

QCOM +2.00, +4.98% gapped higher after raising its Q2 sales and earning forecast from stronger than expected sales. Volume was 67.3 million shares, average volume 30.4 million shares.


BBY +1.49, +3.59% gapped higher after reporting Q4 EPS of 1.82 vs. 1.79 estimates. Volume was 30.6 million shares, average volume 8.2 million shares.

ADBE moved lower with the market pull back after gapping higher on Wednesday following earnings of 40 cents vs. 37 cent estimate Tuesday after the close.

Guidance:

The SPX closed at 1,165.73 forming an outside day and a potential shooting star pattern.

Short term traders are still on Yellow Alert for a potential exit from the short term up trend.

Trade with the trend and be mentally flexible and watch for a potential counter trend pull back if the chart breaks short term support.

The chart target is still 1,255 in approximately nine weeks after the 1,150 breakout on March 16.

The VIX rose 0.85 and did confirm the lower close on Thursday.

The SPX, INDU, COMPQ, RUT, TRAN and SOX all pulled back closing near Tuesday’s open for the second day in a row.

The short term trend is neutral.
The four-month trend is up.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch trade with the trend and follow your rules.

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

AAPL -2.72
QCOM +2.00
GOOG +5.55
BIDU -16.52
NDX 100 stocks stronger than the NDX include AMZN, QCOM, PCLN, GRMN, FSLR, EBAY, LINTA, LRCX, URBN, CMCSA, YHOO, AMAT, MSFT, NWSA, ORCL, GOOG, PCAR, RYAAY, PPDI, SHLD, KLAC, FLIR, HANS, XRAY, INFY, SYMC, EXPE, AMGN, ROST, NVDA, ADSK, ERTS, TEVA, BRCM and COST.

Stocks to Watch on Friday
Holding Above 30 DMA
CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, ATI, WAB, GS, DOW, AMD, AMX, WFC, ACN, CEDC, MA, ZION, BKC, MCD, ALGT, GME, WCG, K
Moving Above 30 DMA = 1
STT
Moving Below 30 DMA = 6
AMED, FCX, IPI, MOS, PWRD, USO
Staying Below 30 DMA
CHL, CAM, ATW, SYNA, CGA, FUQI, HEAT, SWN, TSL, BYI, FAZ, UNG, MON

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

Futures Point to a Higher Open...

BMO – ES +5.50 and NQ +8.75 futures are higher in pre-market trading pointing to a lower open. AAPL +1.08, AMZN +0.96, GOOG +2.66 and BIDU +4.24 are higher in pre-market trading.


On Wednesday the SPX paused and formed an inside day. If pre-market trading carries over into the open look for the SPX to regain Wednesday’s pull back.  The long term and intermediate term trends are up.  The short term neutral which was neutral on Wednesday could resume to the upside on Thursday.

Remember to distinguish between price fluctuation and trend change.

The Euro is up 33 pips in overnight trading. Oil is quoting up 42 cents in electronic trading. XLE is up 28 cents in pre-market trading.

SPY is up 58 cents in pre-market trading. XLF is up 9 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

Look at these Charts
FAS, WLT, X, GS, BA, CREE, POT, DHR, DE

SPX
Support = 1,169, 1,150, 1,139
Resistance = 1,178, 1,216

Trading Down: PCLN, FAZ
Trading Up: HDB, WLT, X, FAS, POT, GS, FCX, MOS, BA, CREE, POT, V, SNDK, MCD, CAT, USO, BAC, URE

At the Open on Thursday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –
CLF -

SPX Closes Lower Forms Inside Day...

DJIA 10,836.15 -52.68 -0.48%
SP500 1,167.72 -6.45 -0.55%
COMPQ 2,398.76 -16.45 -0.68%
Russell 2000 683.68 -6.62 -0.96%

Exchange NYSE NASD
Advancing 1,030 803
Declining 2,010 1,892

Oil $80.60 -1.31
Gold $1,088.50 -15.20
SOX 365.37 -7.10
VIX 17.55 +1.20

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

Strongest Sectors: XLF +0.06%…XLB -0.29%...XLY -0.40%
Weakest Sectors: XLV -1.07%...XLU -1.04%...XLU -0.71%

Eight of nine sectors moved lower on Wednesday. Financials, Materials, Consumer Discretionary and Technology were stronger than the SPX -0.55%.

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

Key Resistance Levels
1,178 = Fib extension
1,216 = Fib extension
Key Support Levels
1,155 = 1,119 BO chart target – Dec 23
1,145 = 1,133 BO chart target – Dec 31 Low

Financial stocks were among the leaders on Wednesday including: KEY, CME, BAC, RF, ZION, JPM and ICE.

Look at these Charts

(click image to enlarge)

ADBE +1.29, +3.66% gapped higher and closed below Wednesday’s open and above Tuesday’s close after reporting earnings of 40 cents vs. 37 cent estimate Tuesday after the close.

Guidance:
The SPX closed at 1,167.72 forming an inside day and a bearish harami pattern. If the bearish harami is confirmed it could lead to a short term counter trend pull back.

Short term traders are on Yellow Alert for a potential exit from the short term up trend.

The chart target is still 1,255 in approximately nine weeks after the 1,150 breakout on March 16.

The VIX rose 1.20 and did confirm the lower close on Tuesday.

The SPX, INDU, COMPQ, RUT, TRAN and SOX all pulled back closing near Tuesday’s open.

The short term trend is neutral.
The four-month trend is up.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch trade with the trend and follow your rules.

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

AAPL +1.01
QCOM -0.33
GOOG +8.33
BIDU +13.62
NDX 100 stocks stronger than the NDX include ADBE, BIDU, GRMN, NWSA, GOOG, NTAP, CTXS, CMCSA, AAPL, INTU, YHOO, WCRX, CHKP, AKAM, ERTS, HSIC, CERN, VRSN, PCLN and URBN.

Stocks to Watch on Thursday
Holding Above 30 DMA
CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ACN, CEDC, MA, PWRD, ZION, BKC, MCD, ALGT, GME, AMED, WCG, K
Moving Above 30 DMA = 1
MOS
Moving Below 30 DMA = 2
CHL, STT
Staying Below 30 DMA
CAM, ATW, SYNA, CGA, MOS, FUQI, HEAT, SWN, TSL, BYI, FAZ, UNG, MON

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

Future Point to a Lower Open...

BMO – ES -2.50 and NQ -3.25 futures are lower in pre-market trading pointing to a lower open. AAPL -0.86, AMZN +0.06, GOOG -3.00 and BIDU +2.01 are mixed in pre-market trading.

Look for a gap up in ADBE after reporting 40 cents vs. 37 cents estimate after the close on Tuesday.

On Tuesday the SPX broke through short term resistance at 1,169 and the SOX broke through January resistance. Expect this up trend to continue but don’t be surprised if prices pause and pull back slightly. The dollar is up and commodity prices and related will likely see some selling pressure this morning. This could keep broader indexes down in early trading.

Remember to distinguish between price fluctuation and trend change.

The Euro is down 134 pips in overnight trading. Oil is quoting down 1.37 in electronic trading. XLE is down 65 cents in pre-market trading.

SPY is down 38 cents in pre-market trading. XLF is down 7 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

Look at these Charts

(click image to enlarge)

SPX
Support = 1,169, 1,150, 1,139
Resistance = 1,178, 1,216

Trading Down: FCX, FAS, GS, MOS, USO, X, CHL, AGU, CAT, POT, IPI, DE, TSL, FUQI, UNG
Trading Up: JEC, BUCY, FAZ, SWK

At the Open on Wednesday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –

SPX Breaks Resistance Rallies to New High...

DJIA 10,888.83 +102.94 +0.95%
SP500 1,174.17 +8.36 +0.72%
COMPQ 2,415.24 +19.84 +0.83%
Russell 2000 690.30 +7.39 +1.08%

Exchange NYSE NASD
Advancing 2,204 1,804
Declining 823 878

Oil $81.91 +0.31 – May contract
Gold $1,103.70 +4.20 – April contract
SOX 372.47 +8.22
VIX 16.35 -0.52

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

Strongest Sectors: XLB +1.30%…XLI +1.13%...XLK +0.96%
Weakest Sectors: XLE +0.39%...XLY +0.40%...XLU +0.40%

All nine sectors moved higher on Tuesday. Materials, Industrials, Technology, Financials and Consumer Staples were stronger than the SPX +0.72%.

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

Key Resistance Levels
1,178 = Fib extension
Key Support Levels
1,155 = 1,119 BO chart target – Dec 23
1,145 = 1,133 BO chart target – Dec 31 Low

Our DE virtual trade from our Monday night webcast was filled at 7:32:52 am MDT as DE passed our 60.41 conditional price.  The 40 April 60 calls filled at 1.61 and the 60 May 65 calls filled at 1.05.  By the end of the day the April calls gained +70% and the May calls +60%.  We'll keep you posted as these trades evolve. 

Look at these Charts

(click image to enlarge)

ADBE +2.28, +6.47% after hours reported earnings of 40 cents vs. 37 cents estimate.

Guidance:
The SPX closed at 1,174.17 forming a white candle breaking through the 1,169 horizontal resistance. The chart target is still 1,255 in approximately nine weeks after the 1,150 breakout on March 16.

The VIX closed at it lowest level since May 16, 2008 and did confirm the higher close on Tuesday.

The SPX, INDU, COMPQ, RUT, TRAN and SOX all moved higher. The SOX gained another +2.26% on Tuesday and broke out of its January resistance level. The four broad indexes and the TRAN and SOX have broken above January resistance levels.

The short term trend is up.
The four-month trend is up.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch, trade with the trend and follow your rules.

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

AAPL +3.61
QCOM +0.24
GOOG -8.50
BIDU +15.16
NDX 100 stocks stronger than the NDX include FLEX,WCRX, KLAC, DELL, STX, LRCX, AMAT, JOYG, MRVL, GRMN, STLD, BIDU, FSLR, NVDA, RIMM, INTC, FWLT, NIHD, CMCSA, ORCL, LBTYA, AAPL, MXIM, FLIR, CSCO, SHLD, FAST, CTSH, INFY, HANS, ALTR, MCHP, MSFT and XLNX.

Stocks to Watch on Wednesday
Holding Above 30 DMA
CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ACN, CEDC, MA, PWRD, ZION, BKC, MCD, ALGT, GME, AMED, WCG, STT, K, CHL, CAM
Moving Above 30 DMA = 0

Moving Below 30 DMA = 0


Staying Below 30 DMA
ATW, SYNA, CGA, MOS, FUQI, HEAT, SWN, TSL, BYI, FAZ, UNG, MON

Intermediate Term Market Trend: Up
Short Term Market Trend: Up

Futures Point to a Flat to Slightly Higher Open...

BMO – ES +1.25 and NQ +2.50 futures are slightly higher in pre-market trading pointing to a flat to higher open. AAPL +1.09, AMZN +0.47, GOOG +0.95 and BIDU +12.63 are higher in pre-market trading.

On Monday prices reversed and moved from support to resistance in the SPX trading range of 1,153 to 1,170. Watch for a potential break in either direction and trade the short term breakout according to your rules. The long and intermediate term trends are still up. The short term trend is neutral until a breakout.

The Euro is down 46 pips in overnight trading. Oil is quoting down 20 cents in electronic trading. XLE is up 2 cents in pre-market trading.

SPY is up 15 cents in pre-market trading. XLF is up 3 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

Look at these Charts

(click image to enlarge)

SPX
Support = 1,150, 1,139
Resistance = 1,170, 1,178

Trading Down: SYNA, DOW, AGU, FAZ, HEAT, IPI
Trading Up: JEC, BA, FAS, SWN, X, HLF, CAT, MCD, CGA, V, GS, UAUA, MOS, FUQI, TSL, SNDK, BAC

At the Open on Tuesday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –

SPX Rallies to Resistance Again...

DJIA 10,785.89 +43.91 +0.41%
SP500 1,165.81 +5.91 +0.51%
COMPQ 2,395.40 +20.99 +0.88%
Russell 2000 682.91 +9.02 +1.34%

Exchange NYSE NASD
Advancing 2,014 1,745
Declining 1,018 983

Oil $81.60 +1.10 – May contract
Gold $1,099.50 -8.10 – April contract
SOX 364.25 +8.58
VIX 16.87 -0.10

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

Strongest Sectors: XLB +1.47%…XLY +1.05%...XLK +0.75%
Weakest Sectors: XLU -0.67%...XLE -0.26%...XLI +0.29%

Seven of nine sectors moved higher on Monday. Materials, Consumer Discretionary, Technology, Healthcare and Financials were stronger than the SPX +0.51%.

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

Key Resistance Levels
1,178 = Fib extension
Key Support Levels
1,155 = 1,119 BO chart target – Dec 23
1,145 = 1,133 BO chart target – Dec 31 Low
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low

After futures led the market lower overnight, U.S. cash markets rallied on Monday’s open, regaining Friday’s losses in the broad indexes and many individual stocks. The short term trend is still neutral over the past four days.

Look at these Charts

(click image to enlarge)

 
ADBE is scheduled to report earnings on Tuesday after the close.

Guidance:
The SPX closed at 1,165.81 forming a white candle while reversing Friday’s downward momentum. The SPX’s current trading range is 1,153 to 1,170. Continue to watch for a break of support or resistance for the next short term move.

The VIX closed slightly lower and did confirm the higher close on Monday.

The SPX, INDU, COMPQ, RUT, TRAN and SOX all moved higher. The SOX gained 2.41% ahead of the broad indexes showing a possible sign of strength for technology stocks.

The short term trend is neutral.
The four-month trend is up.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch trade with the trend and follow your rules.

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

AAPL +2.50
QCOM +0.22
GOOG -2.50
BIDU +10.07
NDX 100 stocks stronger than the NDX include WYNN, LRCX, STX, SHLD, KLAC, EXPE, ALTR, FAST, LBTYA, MRVL, URBN, AMAT, PCAR, TEVA, JOYG, MCHP, NIHD, ORLY, BIDU, XLNX, DTV, MXIM, LLTC, PCLN, LINTA, NVDA, SPLS, CERN, NTAP, CHKP, ORCL, INFY, DELL, ESRX, CMCSA, ADSK, BRCM, CTSH, ATVI, FISV, FLEX, RIMM, ROST, CTAS, INTC, AAPL, BBBY, XRAY, SBUX, HSIC and PAYX.

Stocks to Watch on Tuesday
Holding Above 30 DMA
CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ACN, CEDC, MA, PWRD, ZION, BKC, MCD, ALGT, GME, AMED, WCG, STT, K, CHL
Moving Above 30 DMA = 1
CAM
Moving Below 30 DMA = 0

Staying Below 30 DMA
ATW, SYNA, CGA, MOS, FUQI, HEAT, SWN, TSL, BYI, FAZ, UNG, MON

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

Futures Point to a Lower Open...

10:00 am EDT - U.S. did not follow the overnight trading direction...after opening lower due to futures trading...markets are rallying...SPY down 4 cents...QQQQ is up 24 cents...DIA is up 4 cents...IWM is up 2 cents...other stocks also higher this morning: BA, ESI, ALGT, PCLN, DEC, USD, SNDK, NFLX, BDX, UAUA, VAR, GME, PCP, HANS, FUQI, SW, V, VPRT, DHR, WMT, K, SYNA, MYGN, GR, FLS, DE, SPG, MHS


BMO – ES -8.00 and NQ -11.75 futures are lower in pre-market trading pointing to a lower open. AAPL -1.60, AMZN -0.62, GOOG -3.19 and BIDU +0.18 are mostly lower in pre-market trading.

At the open we want to see if  the U.S. markets also trade to the downside. At times the U.S. markets reverse the direction of overnight trading shortly after the open, so watch for this and trade accordingly.

This may be the beginning of the potential pull back we were talking about last week, so be prepared and protect yourself according to your rules.

Biotech stocks were among the strong NASDAQ stocks on Friday. Following Sunday’s passage of the healthcare bill, watch etf’s like XLV, BBH and XBI for a sense if traders are reacting negatively. It may be that this was already factored into the price. Watch support levels and the trend.

Wednesday through Friday is the high day on many charts.  Watch for a break of the low of the high day or short term support.

The Euro is down 64 pips in overnight trading. Oil is quoting down 1.37 in electronic trading. XLE is down 66 cents in pre-market trading.

SPY is down 66 cents in pre-market trading. XLF is down 15 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

Look at these Charts

(click image to enlarge)

SPX

Support = 1,150, 1,139

Resistance = 1,178

Trading Down: FCX, POT, MOS, IPI, AGU, V, X
Trading Up: BA, GME

At the Open on Monday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –

SPX Narrow Trading Range Pulls Back From Resistance...

DJIA 10,741.98 -37.19 -0.35%
SP500 1,159.90 -5.93 -0.51%
COMPQ 2,374.41 -16.87 -0.71%
Russell 2000 673.89 -7.72 -1.13%

Exchange NYSE NASD
Advancing 901 1,048
Declining 2,147 1,666

Oil $80.50 -2.04 – May contract
Gold $1,107.60 -20.60 – April contract
SOX 355.67 -5.97
VIX 16.97 +0.35

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

Strongest Sectors: XLV -0.04%…XLU -0.11%...XLP -0.29%

Weakest Sectors: XLE -1.20%...XLB -1.09%...XLF -0.66%

All nine sectors moved lower on Friday. Healthcare, Utilities, Consumer Staples, Consumer Discretionary and Industrials were stronger than the SPX -0.51%.

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

Key Resistance Levels
1,178 = Fib extension
Key Support Levels
1,155 = 1,119 BO chart target – Dec 23
1,145 = 1,133 BO chart target – Dec 31 Low
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low

The short term trend turned neutral on Friday as many stocks and broad indices turned lower and finished near or below price lows on Wednesday. We believe this could signal a short term correction. Many short term traders will look to exit bullish trades or take bearish trades on a break of the low of the high day or a break below short term support.


I alerted listeners in the Weekly Wrap on Friday to be prepared for a potential pull back and issue the same alert here. Trade according to your rules going into the new week.

Look at these Charts

(click image to enlarge)

Potential Bearish Entry

(click image to enlarge)

ADBE is scheduled to report earnings on March 23.

Guidance:
The SPX closed at 1,159.90 while forming a bearish engulfing pattern following an inside day on Thursday.

The VIX closed higher and did confirm the lower close on Friday.

The SPX, INDU, COMPQ, RUT, TRAN and SOX all moved lower. Each index formed a high day on Wednesday, Thursday or Friday.

Be aware if the broad indexes do move lower that it is likely that approximately 75% of stocks will move lower also. Be prepared to protect your short term positions if prices move lower.

May options contracts start trading Monday in many underlying stocks.

The short term trend is neutral.
The four-month trend is up.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch trade with the trend and follow your rules.

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

AAPL -2.40
QCOM -0.38
GOOG -6.40
BIDU +4.99
NDX 100 stocks stronger than the NDX include ROST, GENZ, AMGN, VRTX, CEPH, HANS, TEVA, EXPD, FLIR, CTAS, ESRX, GILD, FLEX, PPDI, BIDU, BIIB, CTXS, MICC, ILMN, PCAR, FWLT, SRCL, ORLY, HSIC, CHRW, SPLS, EXPE, LRCX, MSFT INTU, PDCO and SBUX.

Stocks to Watch on Monday
Holding Above 30 DMA
CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, CGA, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ATW, ACN, CEDC, MA, PWRD, ZION, BKC, MCD, ALGT, GME, SYNA, AMED, WCG, STT, K, CHL
Moving Above 30 DMA = 0


Moving Below 30 DMA = 4
ATW, CAM SYNA, CGA
Staying Below 30 DMA
MOS, FUQI, HEAT, SWN, TSL, BYI, FAZ, UNG, MON

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

Futures Point to a Flat Open...

BMO – ES +2.50 and NQ +3.50 futures are slightly higher in pre-market trading pointing to a flat to higher open. AAPL -0.58, AMZN +0.15, GOOG -2.95 and BIDU +12.30 are mixed in pre-market trading.

Thursday’s trading and this morning’s pre-market trading seems to indicate a continuation of trading in a relatively narrow range between 1,160 and 1,170.

March options expire today. Wednesday is the high day.

The Euro is down 60 pips in overnight trading. Oil is quoting down 52 cents in electronic trading. XLE is down 9 cents in pre-market trading.

SPY is down 17 cents in pre-market trading. XLF is down 4 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

Look at these Charts

(click image to enlarge)

SPX
Support = 1,150
Resistance = 1,178

Trading Down: SYNA, FAS, TSL, ZION, MON, WLT, CL, BUCY
Trading Up: BA, PCP, POT, HANS, MOS, ATI, V,AGU, X, GME, UNP

At the Open on Friday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –

SPX Pause as INDU Rises...

DJIA 10,779.17 +45.50 +0.42%
SP500 1,165.83 -0.38 -0.03%
COMPQ 2,391.28 +2.19 +0.09%
Russell 2000 681.61 -2.37 -0.35%


Exchange NYSE NASD
Advancing 1,283 1,159
Declining 1,746 1,530


Oil $82.10 -0.83
Gold $1,127.40 +3.40
SOX 361.64 -2.42
VIX 16.62 -0.29

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

The VIX made it lowest close since May 16, 2008.

Strongest Sectors: XLV +0.68%…XLI +0.68%...XLK +0.13%
Weakest Sectors: XLE -1.49%...XLB -0.71%...XLF -0.57%

Four of nine sectors moved higher on Thursday. Healthcare, Industrials, Technology and Consumer Staples were stronger than the SPX -0.03%.

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

Key Resistance Levels
1,178 = Fib extension
Key Support Levels
1,155 = 1,119 BO chart target – Dec 23
1,145 = 1,133 BO chart target – Dec 31Low
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low

Guidance:

The SPX closed at 1,165.83 while forming an inside day. Breakout continues t hold with an SPX chart target at 1,255 over about 9 weeks.

The VIX closed lower and did not confirm the slightly lower close on Thursday.

The Dow TRAN, INDU and COMPQ moved higher. Wednesday is still the high day in the broad indexes

Friday is quarterly triple witching expiration of options.

The short term 5-week trend is up.
The four-month trend is up.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch trade with the trend and follow your rules.

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

AAPL +0.53
QCOM +1.53
GOOG +0.84
BIDU -2.29
NDX 100 stocks stronger than the NDX include QCOM, TEVA, HOLX, BBBY, ERTS, SYMC, EBAY, CHRW, AMGN, ATVI, CTXS, EXPD, BRCM, AMZN, INFY, CTAS, APOL, VRSN, JBHT, RYAAY, NTAP, FLIR, PPDI, LINTA, IACI, ADBE, DTV, GENZ, ESRX, FSLR, CMCSA, GILD, CEPH, CELG, CTSH, HSIC, LIFE, YHOO, INTU, CSCO, URBN, AAPL and CHKP.

Stocks to Watch on Thursday
Holding Above 30 DMA
CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, CGA, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ATW, ACN, CEDC, MA, PWRD, ZION, BKC, MCD, ALGT, GME, SYNA, AMED, WCG, STT, K
Moving Above 30 DMA = 1CHL
Moving Below 30 DMA = 1
MOS
Staying Below 30 DMA
FUQI, HEAT, SWN, TSL, BYI, FAZ, UNG, MON

Intermediate Term Market Trend: Up
Short Term Market Trend: Up

Futures Point to a Flat Open...

BMO – ES -0.50 and NQ +0.00 futures are near unchanged in pre-market trading pointing to a flat open. AAPL -0.22, AMZN -0.01, GOOG -0.69 and BIDU -2.95 are slightly lower in pre-market trading.

Tuesday’s breakout held on Wednesday. If this breakout holds 1,255 over about a nine week period is the Chart Signals price target for the SPX.

Options and futures expire on Friday. Index trading closes today. Wednesday is now the high day. Watch to see if Thursday’s trading is able to stay above Friday’s high of 1,153.41.

The Euro is down 60 pips in overnight trading. Oil is quoting down 62 cents in electronic trading. XLE is up 9 cents in pre-market trading.

SPY is up 5 cents in pre-market trading. XLF is down 2 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX. Remember XLF closed above horizontal resistance on Tuesday after trading in a sideways range since October…its breakout coinciding with the breakout of SPX as we have been saying in Chart Signals.

Follow your rules in any trading actions today. Be logical.

Look at these Charts
GES, CREE, DE, X, ZION

SPX
Support = 1,150, 1,139,
Resistance = 1,178

Trading Down: TSL, FAS, USO, CAT, ZION
Trading Up: GME, GES, CHL, BKC, CREE, DE, X

At the Open on Thursday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –

SPX Rises as Breakout Continues...

DJIA 10,733.67 +47.69 +0.45%
SP500 1,166.21 +6.75 +0.58%
COMPQ 2,389.09 +11.08 +0.47%
Russell 2000 683.98 +4.40 +0.65%


Exchange NYSE NASD
Advancing 2,169 1,607
Declining 891 1,097


Oil $82.93 +1.13
Gold $1,124.00 +1.80
SOX 364.06 +4.19
VIX 16.91 -0.78

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

The VIX made it lowest close since May 16, 2008.

Strongest Sectors: XLF +1.21%…XLE +1.10%...XLB +0.56%
Weakest Sectors: XLV +0.03%...XLI +0.16%...XLK +0.31%

All nine sectors moved higher on Wednesday for the second straight day. Financials and Energy were stronger than the SPX +0.58%.

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

Key Resistance Levels
1,178 = Fib extension
Key Support Levels
1,155 = 1,119 BO chart target – Dec 23
1,145 = 1,133 BO chart target – Dec 31 Low
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low

The SPX rose again on Wednesday on a continuation move following Tuesday's breakout of resistance.

The INDU made a new high close as did the TRAN confirming the primary up trend of the last year under Dow Theory.
 
Guidance:

The SPX made a new high close 1,166.21 while forming another white candle. If this breakout holds the SPX chart target is 1,255 over about 9 weeks.

The VIX closed lower and did confirm the higher close on Wednesday.

The RUT, COMPQ and Dow Transports moved higher above horizontal resistance. INDU closed just above its January resistance. Wednesday is the new high day in the broad indexes

This week is quarterly triple witching expiration.

The short term 5-week trend is up.
The four-month trend is up.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch trade with the trend and follow your rules.

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

AAPL -0.33
QCOM -0.11
GOOG +0.36
BIDU -6.21
NDX 100 stocks stronger than the NDX include GRMN, CELG, LINTA, LBTYA, FAST, CERN, DELL,NVDA, ORLY, NIHD, MICC, INFY, AMAT, PCAR, CTAS, KLAC, XLNX, AKAM, ADBE, PDCO, ATVI, ERTS, FISV, CA, LLTC, SBUX, INTC, ORCL, ADP, STX, MCHP, FLEX, HANS, MSFT, YHOO, IACI, CHRW, ADSK, EBAY, CTSH, COST, SIAL, LOGI, EXPE, MXIM, ALTR, CMCSA, PCLN, LRCX, PAYX, CSCO, HSIC, SRCL and SPLS.

Stocks to Watch on Thursday
Holding Above 30 DMA
CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, FUQI, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, CGA, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ATW, ACN, CEDC, MA, PWRD, ZION, BKC, MCD, ALGT, GME, SYNA, AMED, HEAT, WCG, CHL, STT, K
Moving Above 30 DMA = 0


Moving Below 30 DMA = 3
CHL, FUQI, HEAT
Staying Below 30 DMA
SWN, TSL, BYI, FAZ, UNG, MON

Intermediate Term Market Trend: Up
Short Term Market Trend: Up