Fed Leaves Rates Unchanged...SPX Joins RUT, COMPQ on Breakout...

DJIA 10,685.98 +43.83 +0.41%
SP500 1,159.46 +8.95 +0.78%
COMPQ 2,378.01 +15.80 +0.67%
Russell 2000 679.58 +5.17 +0.77%


Exchange NYSE NASD
Advancing 2,215 1,707
Declining 813 1,024


Oil $81.80 +2.00
Gold $1,122.20 +17.10
SOX 359.87 +9.44
VIX 17.69 -0.31

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

Strongest Sectors: XLB +1.47%…XLI +1.35%...XLF +1.22%
Weakest Sectors: XLV +0.28%...XLP +0.47%...XLY +0.75%

All nine sectors moved higher on Tuesday. Materials, Industrials, Financials, Utilities and Energy were stronger than the SPX +0.78%.

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

As expected the Fed left rates unchanged and perhaps unexpected stocks rose broadly with all nine sectors moving higher. The SPX broke through horizontal resistance following the RUT, COMPQ and Dow Transports which had already broken through horizontal resistance during the past two weeks.


Additionally, the INDU rose within 44 points of January’s high and the SOX was within 12 points of its January high.

Many individual stocks either bounced off support or broke through resistance on Tuesday.

Look at these Charts

(click image to enlarge)

Guidance:
The SPX broke through horizontal resistance making a new high close 1,159.46 while forming a larger 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 Tuesday.

The RUT, COMPQ and Dow Transports moved higher above horizontal resistance. Tuesday 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 sideways with a horizontal breakout.
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 +0.61
QCOM +0.14
GOOG +2.02
BIDU -3.68
NDX 100 stocks stronger than the NDX include WYNN, LLTC, INTC, SBUX, NVDA, KLAC, LRCX, FWLT, FLEX, BRCM, MRVL, CHRW, MICC, JBHT, ALTR, APOL, STLD, MXIM, XLNX, EBAY, LOGI, STX, MCHP, AMAT, JOYG, ORLY, BIIB, CELG, CEPH, EXPD, CERN, PCLN, ROST, CTAS, AKAM, NTAP, SIAL, SHLD, CA, VRTX, INFY, FAST and IACI.

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, 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
Moving Above 30 DMA = 3
CHL, STT, K
Moving Below 30 DMA = 0

Staying Below 30 DMA
SWN, TSL, BYI, FAZ, UNG, MON

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