SPX Pulls Back From Resistance...Stays in Trading Range...

DJIA 10,856.79 -50.79 -0.47%
SP500 1,169.43 -3.84 -0.33%
COMPQ 2,397.96 -12.73 -0.53%
Russell 2000 678.64 -5.30 -0.77%

Exchange NYSE NASD
Advancing 1,222 1,014
Declining 1,820 1,681

Oil $83.75 +1.38
Gold $1,116.00 +11.50
SOX 366.57 -2.33
VIX 17.59 +0.46

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

Several companies including DE, BA, CAT, T, LMT and GR have reported charges to earnings as a result of the recent healthcare reform. Here’s an interesting aspect. The change does not take effect until 2013, but accounting rules require that the charges be recorded in the current quarter. This means the news that knocked many of these stocks down this week is not even a cash expense at this time, rather it is a future expense in 2013.

Look at these Charts

(click image to enlarge)

BBY, ADBE and QCOM are still at support setting up for potential support bounce.

Guidance:
The SPX closed at 1,169.43 forming a spinning top and making a lower high and lower low while staying inside the 1,160 – 1,180 trading range. The SPX has been in this trading range for the past 11 trading days.

The trading range pattern has occurred several times since the March 2009 low.

Markets are closed Friday for the three day Easter weekend. Expect trading volume to get lighter on Thursday.

Short term traders are still on Yellow Alert for a potential exit from the short term up trend only if price breaks support.

Continue to trade with the trend. Be mentally flexible and watch for a potential counter trend pull back if the chart breaks short term support.

The chart target is still 1,255 in approximately nine weeks after the 1,150 breakout on March 16.

The VIX rose +0.46 and did confirm the slightly lower close on Wednesday.

The short term trend is neutral.
The four-month trend is up.
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 -0.84
QCOM -0.17
GOOG +0.41
BIDU -1.20
NDX 100 stocks stronger than the NDX include DTV, EXPE, PPDI, GRMN, DISH, HOLX, NIHD, CHKP, ORCL, LINTA, FLIR, JBHT, STX, CMCSA, FSLR, ROST, WCRX, DELL, VRSN, XRAY, CA, ATVI, ESRX, KLAC, HANS, AMAT, GOOG, LOGI, VRTX, FISV, IACI, STLD and CERN.

Stocks to Watch on Thursday

Holding Above 30 DMA
CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, UNP, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, ATI, WAB, GS, DOW, AMD, AMX, WFC, ACN, CEDC, MA, ZION, BKC, MCD, ALGT, GME, WCG, K, FCX, TSL, BYI, USO, CAM, IPI, SYNA
Moving Above 30 DMA = 1
MOS
Moving Below 30 DMA = 4
CHL, HEAT, STT, SWK
Staying Below 30 DMA
VPRT, AMED, PWRD, ATW, CGA, FUQI, SWN, FAZ, UNG, MON

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral