SPX Rises and Pulls Back...Forms Potential Shooting Star...

DJIA 10,841.21 +5.06 +0.05%
SP500 1,165.73 -1.99 -0.17%
COMPQ 2,397.41 -1.35 -0.06%
Russell 2000 679.10 -4.58 -0.67%

Exchange NYSE NASD
Advancing 1,260 1,008
Declining 1,784 1,666


Oil $80.45 -0.16
Gold $1,092.00 +3.50
SOX 364.83 -0.54
VIX 18.40 +0.85


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

Strongest Sectors: XLY +0.58%…XLF +0.44%...XLK +0.17%
Weakest Sectors: XLB -1.99%...XLE -1.68%...XLU -0.64%

Three of nine sectors moved higher on Wednesday. Consumer Discretionary, Financials, Technology, Industrials and Consumer Staples were stronger than the SPX -0.17%.

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

Key Resistance Levels
1,178 = Fib extension
1,216 = Fib extension
Key Support Levels
1,155 = 1,119 BO chart target – Dec 23
1,145 = 1,133 BO chart target – Dec 31 Low

QCOM +2.00, +4.98% gapped higher after raising its Q2 sales and earning forecast from stronger than expected sales. Volume was 67.3 million shares, average volume 30.4 million shares.


BBY +1.49, +3.59% gapped higher after reporting Q4 EPS of 1.82 vs. 1.79 estimates. Volume was 30.6 million shares, average volume 8.2 million shares.

ADBE moved lower with the market pull back after gapping higher on Wednesday following earnings of 40 cents vs. 37 cent estimate Tuesday after the close.

Guidance:

The SPX closed at 1,165.73 forming an outside day and a potential shooting star pattern.

Short term traders are still on Yellow Alert for a potential exit from the short term up trend.

Trade with the trend and 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 0.85 and did confirm the lower close on Thursday.

The SPX, INDU, COMPQ, RUT, TRAN and SOX all pulled back closing near Tuesday’s open for the second day in a row.

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 -2.72
QCOM +2.00
GOOG +5.55
BIDU -16.52
NDX 100 stocks stronger than the NDX include AMZN, QCOM, PCLN, GRMN, FSLR, EBAY, LINTA, LRCX, URBN, CMCSA, YHOO, AMAT, MSFT, NWSA, ORCL, GOOG, PCAR, RYAAY, PPDI, SHLD, KLAC, FLIR, HANS, XRAY, INFY, SYMC, EXPE, AMGN, ROST, NVDA, ADSK, ERTS, TEVA, BRCM and COST.

Stocks to Watch on Friday
Holding Above 30 DMA
CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, 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
Moving Above 30 DMA = 1
STT
Moving Below 30 DMA = 6
AMED, FCX, IPI, MOS, PWRD, USO
Staying Below 30 DMA
CHL, CAM, ATW, SYNA, CGA, FUQI, HEAT, SWN, TSL, BYI, FAZ, UNG, MON

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