SPX Forms Spinning Top at Horizontal Resistance...

DJIA 10,564.38 +11.86 +0.11%
SP500 1,140.45 +1.95 +0.17%
COMPQ 2,340.68 +8.47 +0.36%
Russell 2000 669.63 +2.52 +0.38%

Exchange NYSE NASD
Advancing 1,749 1,474
Declining 1,318 1,161

Oil $81.49 -0.38
Gold $1,122.00 -1.60
SOX 350.47 -0.74
VIX 17.92 +0.13

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

Strongest Sectors: XLI +0.81%…XLK +0.45%...XLF +0.33%
Weakest Sectors: XLB -0.63%...XLY -0.16%...XLP -0.15%

Three of nine sectors moved higher on Tuesday. Industrials, Technology and Financials were stronger than the SPX +0.17%.

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
1,105 - 1,113 = November High
1,101 = October High

Guidance:
The SPX continued to consolidate making a new intra-day high and new closing high while forming a spinning top and closing at 1,140.45.

Tuesday 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 Friday’s S1 at 1,131 and S2 at 1,125 as key short term support levels.

While we may see a consolidation of several days in the 1,130 to 1,150 area stay prepared for either a bounce down or a breakout.

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.

Dave taught an Advanced Technicals workshop to 200 traders in Chicago today.

AAPL +3.94
QCOM -0.11
GOOG -2.29
BIDU +4.77
NDX 100 stocks stronger than the NDX include NVDA, AKAM, EBAY, FWLT, CTXS, AAPL, AYMC, WCRX, LINTA, ERTS, VRTX, TEVA, PCAR, URBN, SBUX, DELL, ADP, WYNN, JOYG, GILD, XRAY, BIDU, ILMN, CHKP, INTC, DISH, PAYX, NIHD, GRMN, ORCL, SPLS and MSFT.

Stocks to Watch on Wednesday
Holding Above 30 DMA
ALGT, CBST, DLB, NFLX, AMED, 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
Moving Above 30 DMA = 1
SWN
Moving Below 30 DMA = 1
ALGT
Staying Below 30 DMA
K, SYNA, TSL, BYI, CHL, FAZ, UNG, MON, WCG, GME

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