Thursday, March 4, 2010

SPX Inches Higher in Front of Unemployment Report...

DJIA 10,444.14 +47.38 +0.46%
SP500 1,122.97 +4.18 +0.37%
COMPQ 2,292.31 +11.63 +0.51%
Russell 2000 652.47 +3.21 +0.49%

Exchange NYSE NASD
Advancing 1,787 1,563
Declining 1,260 1,102

Oil $79.97 -0.24
Gold $1,132.60 -6.40
SOX 346.55 +0.18
VIX 18.72 -0.11

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

Strongest Sectors: XLF +1.01%…XLY +0.91%...XLB +0.68%
Weakest Sectors: XLE -0.52%...XLV -0.32%...XLU +0.20%

Seven of nine sectors moved higher on Thursday. Financials, Consumer Discretionary, Materials, Industrials and Technology were stronger than the SPX +0.37%.

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

Key Resistance Levels:
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,145 = 1,133 BO chart target – Dec 31 Low

Key Support Levels
1,119 = December High
1,105 - 1,113 = November High
1,101 = October High

Stocks gained on Thursday after the Jobless Claims report before the market open. Retail stocks were particularly strong. Five of the six top NDX 100 gainers were retailers: ROST, URBN, SHLD, AMZN, SPLS

Look at these Charts…
(click image to enlarge)

Guidance:
The two shooting stars from Tuesday and Wednesday did not confirm on Thursday. The SPX made a new high close at 1,122.97.

Wednesday is still the high day. The charts indicate the SPX is likely to continue its short term up trend, continue to watch for a potential break of the low of the high day on Friday.

Watch for the market reaction to the Unemployment Report on Friday morning before the open.

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.

With a breakout on Monday, intermediate term stops can be moved under last Thursday’s low.

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

AAPL +1.38

QCOM +0.56
GOOG +9.27
BIDU +6.76
NDX 100 stocks stronger than the NDX include VRSN, ROST, URBN, SHLD, AMZN, SPLS, GOOG, TEVA, YHOO, NWSA, QCOM, DTV, BIDU, CMCSA, IACI, EBAY, CHKP, ORCL, STLD, EXPE, HANS, MRVL, FLEX, CTAS, BBBY, INTU, ORLY, AAPL, MSFT, ATVI, LINTA, AKAM, STX, EXPD and PCAR.

Stocks to Watch on Friday
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, TSL
Moving Above 30 DMA = 1
ACN
Moving Below 30 DMA = 2
BKC, BYI
Staying Below 30 DMA
CHL, CEDC, MCD, SYNA, ZION, PWRD, FAZ, K, MA, UNG, SWN, MON, WCG, GME

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

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