Monday, March 15, 2010

The Ides of March...SPX Reverses Pullback at Midday...

DJIA 10,642.15 +17.46 +0.16%
SP500 1,150.51 +0.52 +0.05%
COMPQ 2,362.21 -5.45 -0.23%
Russell 2000 674.41 -2.18 -0.32%

Exchange NYSE NASD
Advancing 1,270 1,125
Declining 1,741 1,564

Oil $79.80 -1.44
Gold $1,105.10 +3.60
SOX 350.43 -4.94
VIX 18.00 +0.42

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

Strongest Sectors: XLP +0.76%…XLV +0.66%...XLU +0.37%
Weakest Sectors: XLE -1.03%...XLY -0.12%...XLK -0.09%

Three of nine sectors moved higher on Monday. Consumer Staples, Healthcare, and Utilities were stronger than the SPX +0.05%.

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

Key Resistance Levels:
1,145 = 1,133 BO chart target – Dec 31 Low
1,155 = 1,119 BO chart target – Dec 23

Key Support Levels
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,119 = December High

FOMC announcement on interest rate will be at 2:15 pm EDT on Tuesday.
Look at these Charts
(click image to enlarge)

Guidance:
The SPX continued to consolidate pulling back more than 8 points by midday when buyers moved the index higher to close at 1,150.51. Friday’s potential evening star pattern did not materialize, although Monday’s did form a potential hanging man pattern.

The VIX closed higher and did not confirm the slightly higher close on Monday.

The RUT and COMPQ closed lower.

The INDU and Dow Transports closed slightly higher.

Friday is still the high day. Monday’s pull back did break the low of the high day but buyers came in near the 1,139 support area.

The RUT, COMPQ and Dow Transports stayed above horizontal resistance and continue as technical evidence for a potential SPX breakout.

This week is quarterly triple witching expiration.

Stay prepared for either a bounce down or a breakout. If a breakout occurs the chart target will be 1,255 over about 9 weeks.

The short term 5-week trend is up.
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 trade with the trend and follow your rules.

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

AAPL -2.78
QCOM -0.08
GOOG -16.36
BIDU +26.60
NDX 100 stocks stronger than the NDX include BIDU, HOLX, CTXS, BBBY, LINTA, EXPE, FAST, EBAY, ROST, ADP, ESRX, PAYX, CELG, ADBE, CA, ORCL, YHOO, VRSN, SRCL, JBHT, CSCO, URBN, SHLD, LIFE, FLEX, INFY, COST, CMCSA, ATVI, SBUX, ERTS, GENZ, FISV, SIAL, MICC, HSIC, CTAS, ADSK, APOL, RIMM, BIIB, GILD, PCAR, PDCO, CTSH and INTU.

Stocks to Watch on Tuesday
Holding Above 30 DMA
ALGT, 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
Moving Above 30 DMA = 1
WCG
Moving Below 30 DMA = 2
SWN, TSL
Staying Below 30 DMA
CHL, STT, K, BYI, FAZ, UNG, MON

Intermediate Term Market Trend: Neutral = 4 months, Up = 11 month
Short Term Market Trend: Up

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