SPX at 1,150 Resistance...

DJIA 10,611.84 +44.51 +0.42%
SP500 1,150.24 +4.63 +0.40%
COMPQ 2,368.46 +9.51 +0.40%
Russell 2000 677.22 +2.29 +0.34%

Exchange NYSE NASD
Advancing 1,806 1,509
Declining 1,226 1,132

Oil $82.00 -0.08
Gold $1,108.00 +0.20
SOX 357.16 -0.88
VIX 18.06 -0.51

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

Strongest Sectors: XLF +0.84%…XLV +0.79%...XLY +0.72%
Weakest Sectors: XLE -0.17%...XLP +0.18%...XLU +0.33%

Eight of nine sectors moved higher on Thursday. Financials, Healthcare, Consumer Discretionary and Materials were stronger than the SPX +0.40%.

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

Guidance:
The SPX continued to consolidate making a new intra-day high and new closing high while forming a white candle and closing at 1,150.24. The RUT, COMPQ and Dow Transports stayed above horizontal resistance in a breakout continuation move.

Thursday is now the high day. The SPX continues to trade in the area of horizontal resistance and will ultimately bounce down or breakout. A short term pull back will be indicated by a break of the low of the high day, but keep in mind last Friday’s S1 at 1,131 and S2 at 1,125 as key short term support levels.

The RUT, COMPQ and Dow Transports are positive up trending technical evidence for a potential SPX breakout.

While the consolidation this week in the 1,130 to 1,150 area continued, stay prepared for either a bounce down or a breakout. If a breakout occurs the chart target will be 1,255 over about 8 weeks.

The short term 3-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 +0.66
QCOM +0.22
GOOG +4.69
BIDU +4.93
NDX 100 stocks stronger than the NDX include HOLX, ATVI, FSLR, AMZN, ILMN, PPDI, CTXS, HANS, RIMM, TEVA, ORCL, ROST, PDCO, CTAS, BIDU, LIFE, MCHP, GOOG, SPLS, LOGI, MSFT, BRCM, ESRX, MICC, HSIC, CERN, GRMN, CHKP, EXPD,QCOM, PCLN, AKAM, NTAP and URBN.

Stocks to Watch on Friday
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, HEAT, ACN, CEDC, MA, PWRD, ZION, BKC, MCD, SWN, ALGT

Moving Above 30 DMA = 4
CHL, GME, SYNA, TSL
Moving Below 30 DMA = 1
AMED
Staying Below 30 DMA
HEAT, K, BYI, FAZ, UNG, MON, WCG

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