SPX Moves Back to Support...

DJIA                           11,008.61   -158.71 -1.41%
SP500                          1,186.69     -20.09 -1.66%
COMPQ                        2,461.19    -50.73 -2.02%
Russell 2000                   716.60    -21.14 -2.87%

Exchange                  NYSE             NASD
Advancing                     767                615
Declining                    2,311             2,134

Oil         $86.25         +1.08
Gold    $1,180.10      +11.70
SOX      376.07         -17.90
VIX          22.05        +3.61

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

Key Resistance Levels

1,200 = Jul 2008 support
1,216 = Fib extension
Key Support Levels

1,178 = Fib extension
1,155 = 1,119 BO chart target – Dec 23

The SPX moved lower on Friday while staying above its low of 1,181 on Tuesday and Wednesday.  All four broad indices closed higher in April for the third consecutive month, even though they closed lower for the week ending April 30.

The SPX, INDU and COMPQ all stayed above this week's support and formed mini head and shoulder patterns. The SPX mini pattern has a measuring of 35 points and a target of 1,145 if support is broken.

Look at these Charts

(click image to enlarge)

On Thursday we pointed out bull flag bounces on SPY, DIA, QQQQ and IWM. All four pulled back. Only IWM moved below Tuesday's low, which is the recent low day.

Additionally the bounce in the bull flag patterns on Thursday pulled back on Friday and stayed above Tuesday's low in ACN, BA, BYI, CRM, DHR, GR, MCD, NFLX, PCLN, SPG, UNP, URE, WFC, WHR and ZION. Only CAT, FLS, PCP and SWK dropped below their low on either Tuesday or Wednesday. FLS and PCP report earnings this next week.
BYI, WFC, ZION and PNC were relatively strong in their bull flag pattern on Friday.

Look at these Charts

(click image to enlarge)

Guidance:

Upward momentum failed on Friday and downward momentum was strong. For the most part bull flag support bounces failed to follow through although many did not fall below a short term stop below the low of this week's low.

The SPX moved toward its 1,178 support level. If this support level breaks on Monday be prepared for a potential move to the next support level of 1,155.

Continue to trade with the trend. Be mentally flexible and be willing to trade when your entry and exit signals appear.

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

The VIX rose +3.61 and did confirm the move down on Friday.

The short term trend is neutral and near support.

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.

Continue to adjust stops according to your rules.

AAPL -7.55

QCOM -0.30

GOOG -6.30

BIDU -20.91

NDX 100 stocks stronger than the NDX include: WCRX, SRCL, HOLX, CELG, TEVA, EXPD, MICC, INTU, BIIB, NIHD, PPDI, DISH, ORCL, COST, CHKP, APOL, LBTYA, HANS, QCOM, SIAL, DTV, VRSN and CEPH.

Stocks to Watch on Monday

Holding Above 30 DMA

NFLX, WHR, UNP, CAT, URE, DHR, JEC, CRM, SNDK, FLS, ZION, MCD, GME, TSL, BYI, SYNA, ATW, SWK, ACN, HLF, ICE, PCLN, PCP, SPG, DECK, GR, HANS, DOW, UAUA, WFC, AMX, MYGN, USO

Moving Above 30 DMA = 0

Moving Below 30 DMA = 11

AMD, BA, BAC, BKC, CREE, FAS, GES, MA, USD, UYG, V

Staying Below 30 DMA

CAM, CHL, SWN, UNG, ATI, FAZ, DE, BUCY, WLT, CLF, MHS, WCG, ESI, GMCR, GS, FCX, X, WMT, PWRD, AGU, IPI, POT, MOS

Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral

Futures Point to a Flat Open...

9:33 am ET

Look at these Charts

(click image to enlarge)

BMO – ES -0.75 and NQ +1.50 futures are flat in pre-market trading pointing to a flat open. In pre-market trading AAPL is +0.84, AMZN +0.02, BIDU -2.70, INTC is down 9 cents, BAC down 11 cents and GS -8.08.

GS is down over $8 in pre-market trading following announcement of criminal probe and downgrade by B of A/Merrill. This is leading Financials XLF lower. Healthcare XLV is also lower Friday morning while Industrials XLI, Home builders XHB and Energy XLE are higher.

Look for potential continuation bounces in these bull flag setups on Friday: WHR, CAT, BA, URE, DHR, SNDK, ZION, SYNA, ACN, PCP, DECK, GES, GR, ATI, PCLN, NFLX, SWK

Positive Earnings Reactions: DLB, JRCC
Negative Earnings Reactions: AVP, SWN, VPRT

Key Earnings to Watch:
Thursday – AET, AEM, AGN, AMX, BDX, BMY, CAM, CELG, CVX, XRAY, DLB, EXPE, XOM, JRCC, KLAC, MXIM, WFR, MET, PG, SPG, SWN, VPRT
Friday – AVP, DISCA

The short term is up and the intermediate term and long term trends are up.

Trade those charts that meet your rules in the direction of the trend.

The Euro is up 97 pips in overnight trading.  Oil is up 67 cents in electronic trading. 

SPY is up 4 cents and XLF is down 18 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today.  Be logical.

SPX
Support = 1,200, 1,178
Resistance = 1,216, 1,220

At the Open on Friday
SPY –
QQQQ –
FAS –
ILMN –
AKAM –
DOW –
BBY – flag
SNDK – flag
AAPL – flag
SHLD – flag
NFLX – flag
BA – flag
WHR – flag
ZION – flag
DHR – flag
V – flag
PCLN – flag
DECK – flag
CAT – flag
PCP – flag
X –
CREE –
AMD –
UAUA – potential merger
UNP –
CLF –
DE –
FCX –
GMCR –

Bull Flag Bounce?...Yes, It Did...

DJIA                            11,167.32 +122.05 +1.10%
SP500                           1,206.78 +15.42 +1.29%
COMPQ                        2,511.92 +40.19 +1.63%
Russell 2000                  737.74   +15.35 +2.12%

Exchange                   NYSE              NASD
Advancing                  2,325              2,040
Declining                    744                   706

Oil         $85.17         +1.95
Gold    $1,168.40      +2.90
SOX      393.97         +5.34
VIX          18.44         -2.64

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

Key Resistance Levels
1,216 = Fib extension
1,220 = Sep 25, 2008 resistance
Key Support Levels
1,200 = Jul 2008 support
1,178 = Fib extension

SPY, DIA, QQQQ and IWM had bull flag bounces on Thursday. Additionally ACN, BA, BYI, CAT, CRM, DHR, FLS, GR, MCD, NFLX, PCLN, PCP, SPG, SWK, UNP, URE, WFC, WHR and ZION also bounced in their bull flag pattern.

Look at these Charts

(click image to enlarge)

ATI, DECK, GES, SNDK, SYNA and V are current bull flag setups that could bounce as soon as Friday.

Look at these Charts

(click image to enlarge)

Key Earnings to Watch:
Thursday – AET, AEM, AGN, AMX, BDX, BMY, CAM, CELG, CVX, XRAY, DLB, EXPE, XOM, JRCC, KLAC, MXIM, WFR, MET, PG, SPG, SWN, VPRT
Friday – AVP, DISCA

Guidance:
Upward momentum continued on Thursday confirming the bullish harami on the SPX and the inside day, hammer or bullish harami on many charts inside a bull flag pattern. You may have traded a support bounce on up trending stocks making higher highs and pulling back to higher lows on Thursday as there were dozens if not hundreds of opportunities to do so.

The SPX broke through it 1,200 resistance again on Thursday.

Continue to trade with the trend. Be mentally flexible and be willing to trade when your entry and exit signals appear.

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

The VIX fell -2.64 and did confirm the move up on Thursday.

The short term trend is up.
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.

Continue to adjust stops according to your rules.

AAPL +7.04
QCOM +0.16
GOOG +2.81
BIDU +88.49
NDX 100 stocks stronger than the NDX include: AKAM, FSLR, BIDU, ILMN, NIHD, ORLY, CMCSA, WYNN, EXPE, PCLN, SHLD, HANS, LIFE, CELG, LINTA, KLAC, XRAY, MICC, NVDA, ATVI, PCAR, FAST, AAPL, RYAAY, VRTX, LRCX, VRSN, DTV, WCRX, ISRG, DISH, EXPD, BIIB, JBHT, FWLT, FLEX, BBBY, CTSH, MXIM, SIAL, LBTYA, GENZ, CSCO, SRCL and ROST.

Stocks to Watch on Friday
Holding Above 30 DMA
NFLX, WHR, UNP, CAT, V, URE, DHR, JEC, CRM, USD, SNDK, FLS, AMD, ZION, MCD, GME, TSL, BYI, SYNA, ATW, SWK, ACN, HLF, ICE, PCLN, PCP, SPG, DECK, GES, GR, BA, HANS, CREE, DOW, UAUA, WFC
Moving Above 30 DMA = 8
BAC, BKC, AMX, FAS, MA, MYGN, USO, UYG,
Moving Below 30 DMA = 4
CAM, CHL, SWN, UNG
Staying Below 30 DMA
ATI, FAZ, DE, BUCY, WLT, CLF, MHS, WCG, ESI, GMCR, GS, FCX, X, WMT, PWRD, AGU, IPI, POT, MOS
Intermediate Term Market Trend: Up
Short Term Market Trend: Up

BIDU, FSLR, AKAM, ILMN and Futures Pointing to a Higher Open...

BMO – ES +6.25 and NQ +9.50 futures are higher in pre-market trading pointing to a higher open. In pre-market trading AAPL is +1.81, AMZN +1.05, BIDU +97.62, INTC is up 4 cents, BAC up 14 cents and GS +1.94.

Look for potential bounces in these bull flag setups on Thursday: WHR, CAT, BA, URE, DHR, SNDK, ZION, SYNA, ACN, PCP, DECK, GES, GR, ATI, PCLN, NFLX, SWK.

Strong earnings after the close on Wednesday from several companies is moving the market higher this morning.

Positive Earnings Reactions: BIDU, AKAM, FSLR, ILMN, CLF
Negative Earnings Reactions: GMCR

Look at these Charts

(click image to enlarge)

Key Earnings to Watch:
Monday – CNI, HUM, JEC, KSU, EL, LXK, MHP, NOV, ODP, RSH,TSM, TXN,
Tuesday – MMM, ADP, AFL, DOW, DD, F, FUQI, JBLU, LIFE, MHS, NEM, NSC, NUS, PNRA, LCC, SWK, UAUA, X
Wednesday – AKAM, ATI, APA, BIDU, BKC, CME, CERN, CLF, COP, ESRX, DAVE, FSLR, GMCR, HES, ILMN, K, LOGI, ORLY, OII, POT, RCL, HOT, VAR, VRSN, V, WLT, WLP, XLNX
Thursday – AET, AEM, AGN, AMX, BDX, BMY, CAM, CELG, CVX, XRAY, DLB, EXPE, XOM, JRCC, KLAC, MXIM, WFR, MET, PG, SPG, SWN, VPRT
Friday – AVP, DISCA

The short term is up and the intermediate term and long term trends are up.

Trade those charts that meet your rules in the direction of the trend.

The Euro is up 62 pips in overnight trading.  Oil is up 92 cents in electronic trading. 

SPY is up 70 cents and XLF is up 12 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today.  Be logical.

SPX
Support = 1,178, 1,155
Resistance = 1,200, 1,216

At the Open on Thursday
SPY –
QQQQ –
FAS –
ILMN – gap up after better than expected EPS
AKAM – gap up after better than expected EPS
DOW – breakout after better than expected EPS
BBY – flag
SNDK – flag
AAPL – flag
SHLD – flag
NFLX – flag
BA – flag
WHR – flag
ZION – flag
DHR – flag
V – flag
PCLN – flag
DECK – flag
CAT – flag
PCP – flag
X –
CREE –
AMD –
UAUA – potential merger
UNP –
CLF – gap up after better than expected EPS
DE –
FCX –
GMCR – gap down this morning

Bull Flag Bounce?...

DJIA                            11,045.27 +53.28 +0.48%
SP500                           1,191.36 +7.65 +0.65%
COMPQ                        2,471.73 +0.26 +0.01%
Russell 2000                  722.39   +1.12 -2.38%

Exchange                   NYSE              NASD
Advancing                  1,821              1,433
Declining                    1,230              1,298

Oil         $83.22         +0.78
Gold    $1,171.30      +9.60
SOX      388.63         +1.85
VIX          21.08         -1.73

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

Key Resistance Levels
1,200 = Jul 2008 support
1,216 = Fib extension
Key Support Levels
1,178 = Fib extension
1,155 = 1,119 BO chart target – Dec 23
 
The SPX found support at 1,181 (near its 30 DMA) for the second day in a row and formed a potential bullish harami. The rally had some breadth to it as 352 stocks advanced while 144 declined in the SPX on Wednesday.

Many stocks are in bull flag patterns and formed either a bullish harami, hammer or inside day today.  Look for a potential bull flag bounce on Thursday.

Look at these Charts

(click image to enlarge)

(click image to enlarge)

After the close several stocks beat estimates led by BIDU which soared 89.13.
After Hours EPS
BIDU +89.13, +14.34% reports $2.10 EPS vs $1.50 estimate
AKAM +2.97, +8.95% reports 31 cents ex-items vs 31 cents estimate
CLF +1.44, +2.05% reports 69 cents vs 53 cents estimate
FSLR +8.37, +6.53% reports $2.00 vs $1.63 estimate
ILMN +3.86, +10.26% reports 21 cents vs 19 cents

Key Earnings to Watch:
Monday – CNI, HUM, JEC, KSU, EL, LXK, MHP, NOV, ODP, RSH,TSM, TXN,
Tuesday – MMM, ADP, AFL, DD, F, JBLU, LIFE, MHS, NEM, NSC, NUS, PNRA, LCC, SWK, UAUA, X
Wednesday – AKAM, ATI, APA, BIDU, BKC, CME, CERN, CLF, COP, DOW, ESRX, DAVE, FSLR, GMCR, HES, ILMN, K, LOGI, ORLY, OII, POT, RCL, HOT, VAR, VRSN, V, WLT, WLP, XLNX
Thursday – AET, AEM, AGN, AMX, BDX, BMY, CAM, CELG, CVX, XRAY, DLB, EXPE, XOM, JRCC, KLAC, MXIM, WFR, MET, PG, SPG, SWN, VPRT
Friday – AVP, DISCA

Guidance:
Wednesday downward momentum stopped and upward momentum increased forming an inside day, a hammer or potential bullish harami on many charts inside a bull flag pattern. Be prepared to trade a support bounce on up trending stocks making higher highs and pulling back to higher lows.

If the 1,178 support breaks, expect price to drop to the next support level at 1,155.

Continue to trade with the trend. Be mentally flexible and be willing to trade when your entry and exit signals appear.

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

The VIX fell -1.73 and did confirm the move up 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.

Continue to adjust stops according to your rules.

AAPL -0.44
QCOM +0.90
GOOG +0.13
BIDU +1.27
NDX 100 stocks stronger than the NDX include: LIFE, SYMC, QCOM, CELG, NTAP, ILMN, SRCL, CMCSA, LOGI, BRCM, ALTR, WCRX, XLNX, PDCO, FLIR, CERN, STLD, ORLY, LRCX, MXIM, XRAY, MCHP, EBAY, AMAT, NIHD, ADSK, MRVL, SIAL, GILD, FISV, ISRG, JOYG, HSIC,SHLD, AMGN, EXPD, FAST, RIMM, CHRW, HBHT, CTSX, HOLX, WYNN,ADBE, GRMN, LLTC, CA, MSFT, BIDU, NVDA and CSCO.

Stocks to Watch on Wednesday
Holding Above 30 DMA
NFLX, WHR, UNP, CAT, V, URE, DHR, JEC, USD, SNDK, FLS, AMD, ZION, MCD, GME, TSL, BYI, SYNA, ATW, SWK, ACN, HLF, ICE, PCLN, PCP, SPG, DECK, GES, GR, BA, UNG
Moving Above 30 DMA = 8
CAM, CHL, HANS, SWN, CREE, DOW, UAUA, WFC
Moving Below 30 DMA = 5
ATI, BKC, FAZ, MA, MYGN
Staying Below 30 DMA
AMX, FAS, UYG, DE, BUCY, WLT, BAC, CLF, MHS, WCG, USO, ESI, GMCR, GS, FCX, X, WMT, PWRD, AGU, IPI, POT, MOS

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

Futures Point to a Higher Open...

BMO – ES +6.00 and NQ +9.75 futures are higherer in pre-market trading pointing to a higher open. In pre-market trading AAPL is +0.36, AMZN +0.88, INTC is down 4 cents, BAC up 14 cents and GS +1.61.


Broad indexes were lower on Tuesday amid concerns of debt in Europe. Pre-market trading is a is a small bounce off of Tuesday's low. High prices in financial and energy stocks could lift the market this morning.

Look for potential bounces in these bull flag setups on Wednesday: WHR, CAT, BA, URE, DHR, SNDK, ZION, SYNA, ACN, PCP, DECK, GES, GR, ATI, PCLN, NFLX, SWK

Look at these Charts

(click image to enlarge)

Key Earnings to Watch:
Monday – CNI, HUM, JEC, KSU, EL, LXK, MHP, NOV, ODP, RSH,TSM, TXN,
Tuesday – MMM, ADP, AFL, DOW, DD, F, FUQI, JBLU, LIFE, MHS, NEM, NSC, NUS, PNRA, LCC, SWK, UAUA, X
Wednesday – AKAM, ATI, APA, BIDU, BKC, CME, CERN, CLF, COP, ESRX, DAVE, FSLR, GMCR, HES, ILMN, K, LOGI, ORLY, OII, POT, RCL, HOT, VAR, VRSN, V, WLT, WLP, XLNX
Thursday – AET, AEM, AGN, AMX, BDX, BMY, CAM, CELG, CVX, XRAY, DLB, EXPE, XOM, JRCC, KLAC, MXIM, WFR, MET, PG, SPG, SWN, VPRT
Friday – AVP, DISCA

The short term is up and the intermediate term and long term trends are up.

Trade those charts that meet your rules in the direction of the trend.

The Euro is up 37 pips in overnight trading.  Oil is down 5 cents in electronic trading. 

SPY is up 50 cents and XLF is up 9 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today.  Be logical.

SPX
Support = 1,178, 1,155
Resistance = 1,200, 1,216

At the Open on Wednesday
SPY –
QQQQ –
FAS –
X –
BBY –
CREE –
UAUA –
SNDK –
AAPL –
NFLX –
RIMM –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
GMCR –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CLF –

SPX Breaks Support Amid Concerns of European Debt Issues...

DJIA                            10.991.99 -213.04 -1.90%
SP500                           1,183.71 -28.34 -2.34%
COMPQ                        2,471.47 -51.48 -2.04%
Russell 2000                  721.27   -17.59 -2.38%

Exchange                   NYSE              NASD
Advancing                     500                 535
Declining                    2,604              2,218

Oil         $82.44         -1.76
Gold    $1,161.70      +8.20
SOX      386.78         -14.03
VIX          22.81         +5.34

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

Key Resistance Levels
1,200 = Jul 2008 support
1,216 = Fib extension
Key Support Levels
1,178 = Fib extension
1,155 = 1,119 BO chart target – Dec 23

The SPX broke through its 1,200 support level and fell to its 1,178 support area closing at 1,183.71. The SPX broke the low of the high day which represents an exit for many short term traders. Prices moved lower against the back drop of worries over the debt crisis in Europe, a falling Euro, a rising dollar and falling interest rates in the U.S. Strong earnings and rising consumer confidence were not enough to counter today's selling.

MMM, DD, SWK and X reported better than expected earnings and closed lower than their opening price because of the broad based selling on Tuesday.

Look at these Charts

(click image to enlarge)

Key Earnings to Watch:

Monday – CNI, HUM, JEC, KSU, EL, LXK, MHP, NOV, ODP, RSH,TSM, TXN,

Tuesday – MMM, ADP, AFL, DD, F, JBLU, LIFE, MHS, NEM, NSC, NUS, PNRA, LCC, SWK, UAUA, X

Wednesday – AKAM, ATI, APA, BIDU, BKC, CME, CERN, CLF, COP, DOW, ESRX, DAVE, FSLR, GMCR, HES, ILMN, K, LOGI, ORLY, OII, POT, RCL, HOT, VAR, VRSN, V, WLT, WLP, XLNX

Thursday – AET, AEM, AGN, AMX, BDX, BMY, CAM, CELG, CVX, XRAY, DLB, EXPE, XOM, JRCC, KLAC, MXIM, WFR, MET, PG, SPG, SWN, VPRT

Friday – AVP, DISCA

Guidance:

Monday's potential bearish harami was confirmed on Tuesday and did represent a short term exit for some short term traders. Even though Tuesday's move is a counter trend against the intermediate term up trend, be willing to enter bearish trades in accordance with your rules. If 1,178 support breaks, expect price to drop to the next support level at 1,155.

Monday's pull back setups formed into classic bull flag patterns on Tuesday. Be prepared to trade a support bounce on up trending stocks making higher highs and pulling back to higher lows.

Continue to trade with the trend. Be mentally flexible and be willing to trade when your entry and exit signals appear.

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

The VIX rose +5.34 and did confirm the move down on Tuesday.

The short term trend is down.
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.

Continue to adjust stops according to your rules.

AAPL -7.46

QCOM -0.19
GOOG -2.58
BIDU -20.74
NDX 100 stocks stronger than the NDX include: PPDI, CHKP, GRMN, VRTX, XRAY, ILMN, GENZ, HSIC, FLIR, BIIB, ESRX, HOLX, GILD, GOOG, QCOM and ERTS.

Stocks to Watch on Wednesday
Holding Above 30 DMA
NFLX, WHR, UNP, CAT, V, URE, DHR, JEC, USD, SNDK, FLS, AMD, MA, ZION, BKC, MCD, GME, TSL, BYI, SYNA, ATW, SWK, ACN, HLF, ICE, PCLN, PCP, SPG, DECK, GES, GR, BA, ATI, UNG
Moving Above 30 DMA = 2
FAZ, MYGN
Moving Below 30 DMA = 16
AMX, CAM, CHL, HANS, SWN, FAS, UYG, CREE, DE, DOW, BUCY, UAUA, WLT, BAC, WFC, CLF
Staying Below 30 DMA
MHS, WCG, USO, ESI, GMCR, GS, FCX, X, WMT, PWRD, AGU, IPI, POT, MOS

Intermediate Term Market Trend: Up
Short Term Market Trend: Down

Futures Point to a Lower Open as Energy and Financial Stocks Pull Back...

BMO – ES -4.50 and NQ -5.50 futures are lower in pre-market trading pointing to a lower open. In pre-market trading AAPL is -2.15, AMZN -0.38, INTC is down 2 cents, BAC down 10 cent and GS down 28 cents.

Broad indexes were slightly lower on Monday. Pre-market trading is a continuation of Monday's pull back. Lower prices in financial and energy stocks are weighing on the market this morning.

Look for earnings from ADP, CMI, DD, F, MM, ODP and X before the market and could set the tone for early trading.

UAUA and CAL merger news now indicating that a merger could be announce as soon as next Monday. UAUA did rally from Monday's low and closed down 63 cents.

Look at these Charts

(click image to enlarge)

Key Earnings to Watch:
Monday – CNI, HUM, JEC, KSU, EL, LXK, MHP, NOV, ODP, RSH,TSM, TXN,
Tuesday – MMM, ADP, AFL, DOW, DD, F, FUQI, JBLU, LIFE, MHS, NEM, NSC, NUS, PNRA, LCC, SWK, UAUA, X
Wednesday – AKAM, ATI, APA, BIDU, BKC, CME, CERN, CLF, COP, ESRX, DAVE, FSLR, GMCR, HES, ILMN, K, LOGI, ORLY, OII, POT, RCL, HOT, VAR, VRSN, V, WLT, WLP, XLNX
Thursday – AET, AEM, AGN, AMX, BDX, BMY, CAM, CELG, CVX, XRAY, DLB, EXPE, XOM, JRCC, KLAC, MXIM, WFR, MET, PG, SPG, SWN, VPRT
Friday – AVP, DISCA

The short term is up and the intermediate term and long term trends are up.

Trade those charts that meet your rules in the direction of the trend.

The Euro is down 92 pips in overnight trading.  Oil is down 77 cents in electronic trading. 

SPY is down 41 cents and XLF is down 11 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today.  Be logical.

SPX
Support = 1,200, 1,178
Resistance = 1,216, 1,220, 1,239

At the Open on Tuesday
SPY –
QQQQ –
FAS –
X –
BBY –
CREE –
UAUA –
SNDK –
AAPL –
NFLX –
RIMM –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
GMCR –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CLF –

SPX Pauses Potential Bearish Harami

DJIA                            11,205.03 +0.75 +0.01%
SP500                           1,212.28 -5.23 -0.43%
COMPQ                        2,522.95 -7.20 -0.28%
Russell 2000                  738.86   -3.06 -0.41%

Exchange                   NYSE              NASD
Advancing                  1,435              1,329
Declining                    1,624              1,428

Oil         $84.20         -0.92
Gold    $1,153.50      +0.40
SOX      400.81         +0.39
VIX          17.47         +0.85

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

Key Resistance Levels
1,216 = Fib extension
1,220 = Sep 25, 2008 resistance
Key Support Levels
1,200 = Jul 2008 support
1,178 = Fib extension

The SPX paused on Monday as stocks were mixed with strong stocks continuing to make big moves and many stocks pausing and pulling back.  WHR and NFLX also had big moves today.

Look at these Charts

(click image to enlarge)

 

Key Earnings to Watch:

Monday – CNI, HUM, JEC, KSU, EL, LXK, MHP, NOV, ODP, RSH,TSM, TXN,
Tuesday – MMM, ADP, AFL, DOW, DD, F, FUQI, JBLU, LIFE, MHS, NEM, NSC, NUS, PNRA, LCC, SWK, UAUA, X
Wednesday – AKAM, ATI, APA, BIDU, BKC, CME, CERN, CLF, COP, ESRX, DAVE, FSLR, GMCR, HES, ILMN, K, LOGI, ORLY, OII, POT, RCL, HOT, VAR, VRSN, V, WLT, WLP, XLNX
Thursday – AET, AEM, AGN, AMX, BDX, BMY, CAM, CELG, CVX, XRAY, DLB, EXPE, XOM, JRCC, KLAC, MXIM, WFR, MET, PG, SPG, SWN, VPRT
Friday – AVP, DISCA

Guidance:
The SPX closed lower on Monday as the market took a rest with decliners leading advancers by a small margin. A potential bearish harami could lead to a short term exit for some short term traders.

There are a large number of pull back setups on the charts on Monday.

Continue to trade with the trend. Be mentally flexible and be willing to trade when your entry and exit signals appear.

The intermediate term 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 Monday.

The short term trend is up.
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.

Continue to adjust stops according to your rules.

AAPL -1.33
QCOM -0.14
GOOG -13.35
BIDU -4.91
NDX 100 stocks stronger than the NDX include: JOYG, PCLN, WYNN, RIMM,AMZN, EXPE, URBN, ADSK, AKAM, BRCM, XRAY, SPLS, DTV, NVDA, CTXS, BBBY, INFY, NWSA, CMCSA, ORLY, LLTC, MSFT, GRMN, SBUX, CA, SHLD, KLAC, CSCO, ALTR, SRCL, MXIM, DISH, PAYX, FISV, MCHP, EBAY and PCAR.

Stocks to Watch on Tuesday
Holding Above 30 DMA
NFLX, UAUA, CREE, WHR, BUCY, UNP, CAT, V, URE, DE, BAC, DHR, JEC, FAS, UYG, USD, SNDK, FLS, DOW, AMD, AMX, WFC, MA, ZION, BKC, MCD, GME, TSL, BYI, CAM, SYNA, ATW, CHL, SWK, ACN, HLF, ICE, PCLN, PCP, WLT, SPG, DECK, GES, GR, BA, ATI, SWN, CLF, HANS, UNG
Moving Above 30 DMA = 0

Moving Below 30 DMA = 3
MHS, WCG, USO
Staying Below 30 DMA
ESI, GMCR, GS, FCX, X, WMT, PWRD, AGU, MYGN, IPI, POT, MOS, FAZ

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

Futures Point to a Flat to Slightly Higher Open

BMO – ES +2.00 and NQ +1.50 futures are lower in pre-market trading pointing to a lower open. In pre-market trading AAPL is +1.92, AMZN +0.77, INTC is down 6 cents, BAC up 1 cent and GS up 10 cents.

Broad indexes closed at new highs on Friday after a strong second week of earnings season. Week three starts today with a large number of companies reporting. We have listed those that are of particular interest from the INDU, NDX and other watch lists.

UAUA, LCC and CAL merger news suggesting that UAUA and LCC will not merge and that a combination of UAUA and CAL is possible but that stock price is a significant issue. Reportedly CAL wants to use the pre-rumor price when UAUA was lower. LCC and AMR may be is discussions.

Look at these Charts

(click image to enlarge)

Key Earnings to Watch:
Monday – CNI, DD, HUM, JEC, KSU, EL, LXK, MHP, NOV, ODP, RSH, SWK, TSM, TXN
Tuesday – MMM, AFL, DOW, F, FUQI, JBLU, LIFE, MHS, NEM, NSC, NUS, PNRA, LCC, UAUA, X
Wednesday – AKAM, ATI, APA, BIDU, BKC, CME, CERN, CLF, COP, ESRX, DAVE, FSLR, GMCR, HES, ILMN, K, LOGI, ORLY, OII, POT, RCL, HOT, VAR, VRSN, V, WLT, WLP, XLNX
Thursday – AET, AEM, AGN, AMX, BDX, BMY, CAM, CELG, CVX, XRAY, DLB, EXPE, XOM, JRCC, KLAC, MXIM, WFR, MET, PG, SPG, SWN, VPRT
Friday – AVP, DISCA

The short term is up and the intermediate term and long term trends are up.

Trade those charts that meet your rules in the direction of the trend.

The Euro is down 13 pips in overnight trading.  Oil is up 22 cents in electronic trading. 

SPY is up 9 cents in pre-market and XLF was up 5 cents on Friday.  Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today.  Be logical.

SPX
Support = 1,200, 1,178
Resistance = 1,220, 1,239

At the Open on Monday
SPY –
QQQQ –
FAS –
X –
BBY –
CREE –
UAUA –
SNDK –
AAPL –
NFLX –
RIMM –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
GMCR –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CLF –

SPX New High Close After Key Earnings Week...

DJIA            11,204.28    +69.99 +0.63%
SP500           1,217.28     +8.61 +0.71%
COMPQ         2,530.15   +11.08 +0.44%
Russell 2000   741.92     +7.61 +1.04%

Exchange    NYSE NASD
Advancing   2,171   1,713
Declining        878   1,010

Oil $85.12 +0.90
Gold $1,153.10 +10.80
SOX 400.42 +1.48
VIX 16.62 +0.15

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

Strongest Sectors: XLE+2.41%…XLV +1.00%...XLB+0.89%
Weakest Sectors: XLP -0.25%...XLY +0.08%...XLK +0.25%

Eight of nine sectors moved higher on Friday. Energy, Healthcare, Materials and Utilities were stronger than the SPX +0.71%.

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

Key Resistance Levels
1,216 = Fib extension
1,220 = Sep 25, 2008 resistance
1,239 = Pennant BO target
1,255 = Mar 16 BO target
Key Support Levels
1,200 = Jul 2008 support
1,178 = Fib extension

The SPX opened near Thursday's close and worked its way to a new high close on Friday as did the INDU, TRAN, COMPQ and RUT. Under Dow theory today's new high close on both the INDU and TRAN confirms the current primary up trend.

Look at these Charts

(click image to enlarge)

The SPX recovered from last Friday's sell off (led lower by GS) after making a slightly lower low on Monday and rallying 33 points during this key earnings reporting week. Obviously net buying indicates that big money is willing to buy after strong earnings like AAPL, NFLX, SNDK, SBUX, DHR, BA, DECK and LRCX.

Look at these Charts

(click image to enlarge)

Earnings season continues next week with a large number of INDU, SPX, NDX and secondary companies reporting. 

Key Earnings to Watch:
Monday – CNI, DD, HUM, JEC, KSU, EL, LXK, MHP, NOV, ODP, RSH, SWK, TSM, TXN
Tuesday – MMM, AFL, DOW, F, FUQI, JBLU, LIFE, MHS, NEM, NSC, NUS, PNRA, LCC, UAUA, X
Wednesday – AKAM, ATI, APA, BIDU, BKC, CME, CERN, CLF, COP, ESRX, DAVE, FSLR, GMCR, HES, ILMN, K, LOGI, ORLY, OII, POT, RCL, HOT, VAR, VRSN, V, WLT, WLP, XLNX
Thursday – AET, AEM, AGN, AMX, BDX, BMY, CAM, CELG, CVX, XRAY, DLB, EXPE, XOM, JRCC, KLAC, MXIM, WFR, MET, PG, SPG, SWN, VPRT
Friday – AVP, DISCA

Guidance:
Friday was both a diagonal pennant breakout and a horizontal breakout on the SPX. The short term chart target from the pennant is 1,239, just 16 points less than the intermediate term 1,255 target from the 1,150 horizontal breakout.

There are a large number of support bounce and horizontal resistance breakout setups on the charts Thursday and Friday.

Continue to trade with the trend. Be mentally flexible and be willing to trade when your entry and exit signals appear.

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

The VIX rose +0.15 and did NOT confirm the higher close on Friday.

The short term trend is up.
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.

Continue to adjust stops according to your rules.
AAPL +4.36
QCOM -1.08
GOOG -2.07
BIDU +5.72
NDX 100 stocks stronger than the NDX include: SHLD, STX, FLIR, HANS, PCAR, FLEX, DISH, GILD, WCRX, NTAP, RYAAY, HSIC, PDCO, CELG, LOGI, CERN, VRTX, ADSK, MRVL, LRCX, AAPL, JBHT, XRAY, PCLN, DTV, AMGN, SYMC, BIIB, ESRX, BBBY, CHKP, ORCL, GENZ, ADP, NIHD, BIDU, FAST, MXIM, CMCSA, TEVA, ADBE, SRCL, FWLT and SPLS.

We have removed the following symbols from our watch list for new additions to be added: DLB, TDG, MELI, HDB, VAR, CEDC, WAB, AMED, VPRT, ALGT, CBST, HEAT, CGA, FUQI, K, BDX, STT, MON

Stocks to Watch on Monday
Holding Above 30 DMA
NFLX, UAUA, CREE, WHR, BUCY, UNP, CAT, V, URE, DE, BAC, DHR, JEC, FAS, UYG, USD, SNDK, FLS, DOW, AMD, AMX, WFC, MA, ZION, BKC, MCD, GME, TSL, BYI, CAM, SYNA, ATW, CHL, SWK, ACN, WCG, HLF, ICE, PCLN, PCP, WLT, SPG, DECK, GES, GR, BA, ATI, SWN
Moving Above 30 DMA = 5
CLF, HANS, MHS, UNG, USO
Moving Below 30 DMA = 0

Staying Below 30 DMA
ESI, GMCR, GS, FCX, X, WMT, PWRD, AGU, MYGN, IPI, POT, MOS, FAZ

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

Futures Point to a Slightly Higher Open...

BMO – ES +3.25 and NQ +7.00 futures are lower in pre-market trading pointing to a lower open.  AAPL +2.53, AMZN -4.90, GOOG -0.56 and BIDU +0.51 are mostly lower in pre-market trading.  INTC is down 5 cents, BAC down 4 cents and GS is up 84 cents.


Stocks are mixed in pre-market trading with Financials up and Energy stocks lower.  Look for a continuation move in the SPX towards it 1,216 resistance area.

The short term is up and the intermediate term and long term trends are up.

Trade those charts that meet your rules in the direction of the trend.

AXP, DECK are higher after reporting strong earnings since last night's close
BUCY -4.24 is lower after reporting 45 cents vs. 79 cents estimates.
AMZN -4.90 strong earnings, outlook disappoints

Key Earnings to Watch:
Thursday – AMZN, AXP, BUCY, CAL, DECK, HON, MSFT, NUE, PEP, TRV, UNP
Friday – FLIR, SLB

The Euro is down 7 pips in overnight trading.  Oil is down 55 cents in electronic trading.  XLE is down 8 cents in pre-market trading.

SPY is down 6 cents in pre-market trading.   XLF is down 15 cents in pre-market trading.  Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today.  Be logical.

SPX
Support = 1,200, 1,178
Resistance = 1,216, 1,220

Trading Down: ESI, BUCY, HDB, NFLX, BA, USO, CAT, CREE
Trading Up: DECK, SYNA, ICE, CLF, DLB, FAS, MA, UNP, V, GS, X, HANS, MOS, POT, MON, UAUA, UYG, ZION, SWN

At the Open on Friday
SPY –
QQQQ –
FAS –
X –
BBY –
CREE –
UAUA –
SNDK –
AAPL –
NFLX –
RIMM –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
GMCR –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CLF –

SPX Reverses Pre-Market Selloff and Rises Led By Retail

DJIA                            11,134.29 +9.37 +0.08%
SP500                           1,208.67 +2.37 +0.23%
COMPQ                        2,519.07 +14.46 +0.58%
Russell 2000                  734.31   +8.12 +1.12%

Exchange                   NYSE              NASD
Advancing                  2,027              1,679
Declining                    1,054              1,017

Oil         $83.70         +0.02
Gold    $1,142.30      -5.90
SOX      398.94         +7.52
VIX          16.47         +0.15

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

Strongest Sectors: XLY+1.80%…XLB +0.99%...XLI +0.92%
Weakest Sectors: XLV -1.15%...XLP +0.00%...XLE +0.25%

Seven of nine sectors moved higher on Thursday. Consumer Discretionary, Materials, Industrials, Financials, Utilities, Technology, and Energy were stronger than the SPX +0.23%.

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

Key Resistance Levels
1,216 = Fib extension
1,220 = Sep 25, 2008 resistance
Key Support Levels
1,200 = Jul 2008 support
1,178 = Fib extension

The SPX opened lower and fell for the first 15 minutes of the trading...and...then buyers stepped in at the 1,190 support just above Monday's support low and the SPX rallied 20 points with a close 1,208.67. The rally was led by home building and retail stocks while materials and financial stocks also finishing strong.

Earnings announcements were also a big part of Thursday's gains with AAPL and ZION continuing to perform well and NFLX, SNDK, SBUX, DHR, BA and LRCX with big moves following earnings. QCOM and EBAY dropped after earnings and CREE rebounded after falling yesterday. DECK had big move going into earnings after the close.

Key Earnings to Watch:
Monday – AKS, BNI, BIIB, KO, FUQI, GS, IBM, RF, STT, STLD, ZION
Tuesday – ALGT, AAPL, BK, CREE, DAL, FCX, GILD, JNJ, MCD, MICC, MS, PCAR, UTS, WFC, YHOO
Wednesday – ABT, ALK, AMGN, T, BA, CTXS, DHR, EBAY, GENZ, GR, ESI, KEY, LRCX, NFLX, BTU, QCOM, SNDK, SBUX, TER, VZ, VRTX
Thursday – AMZN, AXP, BUCY, CAL, DECK, HON, MSFT, NUE, PEP, TRV, UNP
Friday – FLIR, SLB

Guidance:
Thursday was an excellent example of why I teach that pre-market futures action does not give a trader any indication of how the market will do. It only gives an indication of where the market will open. Once cash traders enter the market it goes where they take it. The futures are not a crystal ball just simply a derivative trading instrument that trades based on buying and selling.

Continue to trade with the trend. Be mentally flexible and be willing to trade when your entry and exit signals appear.

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

The VIX rose +0.15 and did NOT confirm the higher close on Thursday.

The short term trend is up.
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.

Continue to adjust stops.

AAPL +7.25
QCOM -3.30
GOOG -7.24
BIDU +10.07
NDX 100 stocks stronger than the NDX include: SBUX, LRCX, URBN, WYNN, SHLD, SIAL, ADSK, ORLY, KLAC, ADBE, AAPL, FSLR, AMZN, FAST, CHRW, FLEX, AKAM, ROST, LINTA, ALTR, PCLN, BBBY, CTSH, GRMN, JOYG, DELL, BIDU, YHOO, PCAR, CMCSA, SRCL, CTAS, COST, XLNX, MCHP, INFY, EXPD,DISH, FLIR, BRCM, HSIC, CA, INTC, STX, JBHT, INTU and ISRG.

Stocks to Watch on Friday

Holding Above 30 DMA
DLB, NFLX, UAUA, CREE, WHR, BUCY, UNP, CAT, V, URE, DE, BAC, DHR, JEC, TDG, FAS, UYG, USD, SNDK, MELI, FLS, HDB, VAR, DOW, AMD, AMX, WFC, CEDC, MA, ZION, BKC, MCD, GME, TSL, BYI, CAM, SYNA, ATW, CHL, SWK, ACN, WAB, AMED, K, WCG, HLF, ICE, PCLN, PCP, VPRT, WLT, SPG, DECK, GES, GR, BA, ATI
Moving Above 30 DMA = 1
SWN
Moving Below 30 DMA = 2
ESI, MHS
Staying Below 30 DMA
BDX, USO, CLF, ALGT, CBST, STT, GMCR, GS, FCX, X, WMT, HANS, PWRD, AGU, MYGN, IPI, POT, MOS, HEAT, CGA, FUQI, FAZ, UNG, MON

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

Futures Point to a Lower Open...

BMO – ES -8.00 and NQ -14.00 futures are lower in pre-market trading pointing to a lower open.  AAPL -1.00, AMZN +0.32, GOOG -3.90 and BIDU -4.39 are mostly lower in pre-market trading.  INTC is down 15 cents, JPM down 37 cents, BAC down 17 cents, GE down 12 cents and GS is down 91 cents.


Many stocks are lower before the market open being led by energy and financial stocks. If stocks break support that is a shift to a short term down trend. 

The short term is neutral and the intermediate term and long term trends are up.

Trade those charts that meet your rules in the direction of the trend.

NFLX, ESI, SNDK, DHR are higher after reporting strong earnings since last night's close

QCOM is lower after reporting strong earnings with weak guidance.

Key Earnings to Watch:
Wednesday – ABT, ALK, AMGN, T, BA, CTXS, DHR, EBAY, GENZ, GR, ESI, KEY, LRCX, NFLX, BTU, QCOM, SNDK, SBUX, TER, VZ, VRTX
Thursday – AMZN, AXP, BUCY, CAL, DECK, HON, MSFT, NUE, PEP, TRV, UNP
Friday – FLIR, SLB

The Euro is down 68 pips in overnight trading.  Oil is down 1.07 in electronic trading.  XLE is down 57 cents in pre-market trading.

SPY is down 87 cents in pre-market trading.   XLF is down 15 cents in pre-market trading.  Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today.  Be logical.


SPX
Support = 1,200, 1,178, 1,155
Resistance = 1,216

Trading Down: FAS, CLF, UYG, GS, USD, CEDC, X, BUCY, CAT, FCX, USO, URE, PWRD, ACN, MCD, STT, UAUA, V, POT, WFC, ZION, CREE, TSL, DOW, BAC

Trading Up: NFLX, ESI, SNDK, GMCR, UNP, DHR, BA, FAZ

At the Open on Thursday
SPY –
QQQQ –
FAS –
X –
BBY –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
NFLX –
RIMM –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CLF –

AAPL Gains...SPX Trades Between Support & Resistance...

DJIA                            11,124.92 +7.86 +0.07%
SP500                           1,205.94   -1.23  -0.10%
COMPQ                         2,481.26 +4.30 +0.17%
Russell 2000                    726.19  +4.64 +0.64%

Exchange                   NYSE              NASD
Advancing                  1,758              1,426
Declining                    1,307              1,284

Oil         $83.68          -0.17
Gold    $1,148.20      +9.60
SOX      391.42          -4.29
VIX          16.32         +0.59

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

Strongest Sectors: XLI +0.68%…XLY +0.46%...XLK +0.21%
Weakest Sectors: XLV -1.75%...XLF -0.60%...XLB -0.26%

Four of nine sectors moved higher on Wednesday. Industrials, Consumer Discretionary, Technology, Utilities, Consumer Staples and Energy were stronger than the SPX -0.10%.

Sector Watch

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

Key Resistance Levels
1,216 = Fib extension
1,220 = Sep 25, 2008 resistance
Key Support Levels
1,200 = Jul 2008 support
1,178 = Fib extension

The SPX pulled back to 1,200 support testing Tuesday's breakout before rising and closing down just 1.23 points for the day at 1,205.95. AAPL gapped higher on Wednesday after a strong earnings report after the close on Tuesday. BA also moved higher after reporting better than expected earnings. ZION gained another 5% after a smaller than expected loss and raised guidance on Monday.

Key Earnings to Watch:
Monday – AKS, BNI, BIIB, KO, FUQI, GS, IBM, RF, STT, STLD, ZION
Tuesday – ALGT, AAPL, BK, CREE, DAL, FCX, GILD, JNJ, MCD, MICC, MS, PCAR, UTS, WFC, YHOO
Wednesday – ABT, ALK, AMGN, T, BA, CTXS, DHR, EBAY, GENZ, GR, ESI, KEY, LRCX, NFLX, BTU, QCOM, SNDK, SBUX, TER, VZ, VRTX
Thursday – AMZN, AXP, BUCY, CAL, DECK, HON, MSFT, NUE, PEP, TRV, UNP
Friday – FLIR, SLB

AAPL +14.62
QCOM -0.66
GOOG -0.74
BIDU -5.87
NDX 100 stocks stronger than the NDX include: AAPL, EXPD, CHRW, GENZ, AMZN, NTAP, FWLT, LOGI, APOL, AKAM, SPLS, LBTYA, VRSN, FLIR, STX, RYAAY, PCAR, DELL, ADSK, NWSA, INTU, SIAL, CTXS, ROST, CA, ORLY and URBN.

Stocks to Watch on Thursday
Holding Above 30 DMA
DLB, NFLX, UAUA, CREE, WHR, BUCY, UNP, CAT, V, URE, DE, BAC, DHR, JEC, TDG, FAS, UYG, USD, SNDK, MELI, FLS, HDB, VAR, DOW, AMD, AMX, WFC, CEDC, MA, ZION, BKC, MCD, GME, TSL, BYI, CAM, SYNA, ATW, CHL, SWK, ACN, WAB, AMED, ESI, K, WCG, HLF, ICE, MHS, PCLN, PCP, VPRT, WLT, SPG
Moving Above 30 DMA = 5
DECK, GES, GR, BA, ATI
Moving Below 30 DMA = 3
BDX, USO, CLF
Staying Below 30 DMA
ALGT, CBST, STT, GMCR, SWN, GS, FCX, X, WMT, HANS, PWRD, AGU, MYGN, IPI, POT, MOS, HEAT, CGA, FUQI, FAZ, UNG, MON

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

Nasdaq Points to a Higher Open on Strength of AAPL...

BMO – ES -1.00 and NQ +10.50 futures are mixed in pre-market trading pointing to a higher Nasdaq open. AAPL +15.24, AMZN +1.45, GOOG +1.03 and BIDU +4.72 are higher in pre-market trading. INTC is up 5 cents, JPM up 19 cents, BAC up 8 cents, GE up 14 cents and GS is up 2.47.

Stocks are generally higher in pre-market trading lifted by technology stocks and positive earnings from AAPL. Look for a continuation of Tuesday's support bounce and bull flag bounce continuation.

The short term is did turn up on Tuesday and the intermediate term and long term trends are up.

Trade those charts that meet your rules in the direction of the trend.

Dave is teaching an AT Workshop to over 210 traders in Denver today.

Key Earnings to Watch:
Monday – AKS, BIIB, KO, FUQI, GS, IBM, RF, STT, STLD, ZION
Tuesday – ALGT, AAPL, BK, CREE, DAL, FCX, GILD, JNJ, MCD, MICC, MS, PCAR, UTS, WFC, YHOO
Wednesday – ABT, ALK, AMGN, T, BA, CTXS, DHR, EBAY, GENZ, GR, ESI, KEY, LRCX, NFLX, BTU, QCOM, SNDK, SBUX, TER, VZ, VRTX
Thursday – AMZN, AXP, BUCY, CAL, DECK, HON, MSFT, NUE, PEP, TRV, UNP
Friday – FLIR, SLB

XLE is up 3 cents in pre-market trading.

SPY is up 5 cents in pre-market trading. XLF is up 2 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

SPX
Support = 1,200, 1,178
Resistance = 1,216, 1,220

Trading Down: CREE, WFC, V, TSL, ZION

Trading Up: GS, NFLX, MELI, SNDK, USD, MCD, ATI, GMCR, BA, FAS, FCX, BUCY, AGU, ALGT, FCX, SWN, SPG, MHS, DE, POT, MOS, UYG, UAUA, CAT, X, URE
At the Open on Wednesday
SPY –
QQQQ –
FAS –
X –
ADBE –
BBY –
QCOM –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
NFLX –
RIMM –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CLF –

SPX Breaks 1,200 Resistance...

DJIA 11,117.06 +25.01 +0.23%
SP500 1,207.17 +9.65 +0.81%
COMPQ 2,500.31 +20.20 +0.81%
Russell 2000 721.55 +10.15 +1.43%

Exchange NYSE NASD
Advancing 2,509 2,064
Declining      565    655

Oil $83.85 +0.72
Gold $1,138.60 +2.80
SOX 395.71 +6.05
VIX 15.73 -1.61

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

All nine sectors moved higher on Tuesday. Energy, Financials, Utilities, Consumer Discretionary and Industrials were stronger than SPX +0.81%.

Key Resistance Levels
1,216 = Fib extension
1,220 = Sep 25, 2008 resistance
Key Support Levels
1,200 = Jul 2008 support
1,178 = Fib extension
1,155 = 1,119 BO chart target – Dec 23

ZION +7.83% reported a smaller than expected loss and led financial stocks on Tuesday.  Strong financials included: RF, KEY, FAS, ALL, MS, ICE, UYG, PRU, PNC, USB, SPG, MET IVZ, WFC, C, TROW and AFL.

After the close AAPL reported earnings of 3.33 vs. estimates of 2.45 with a strong outlook...stocks rises 6% in after-hours trading.

Dave is taught over 200 traders in an Advanced Technials workshop in Denver on today and will teach a second day on Wednesday.

Guidance:
The SPX formed a large white candle which confirmed Monday's hammer and bullish harami. The SPX broke through 1,200 resistance.

Continue to trade with the trend. Be mentally flexible and be willing to trade when your entry and exit signals appear.

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

The VIX fell -1.61 and did confirm the lower close on Monday.

The short term trend is up.
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.

Continue to adjust stops according to your rules.

NDX 100 stocks stronger than the NDX included: MICC, FWLT, WYNN, BIDU, CTXS, ADBE, PCLN, ADSK, ALTR, MCHP, JOYG, CA, AKAM, ESRX, CERN, CTSH, BRCM, LIFE, BBBY, XRAY, SYMC, ATVI, RIMM, DISH, LBTYA, SBUX, EXPE, LRCX, PDCO, XLNX, ERTS, ISRG, FLEX, QCOM, STX, AMZN, ORLY, VRTX, ROST, AMAT, MXIM, LOGI, MSFT, MRVL, FLIR and FSLR.

Stocks to Watch on Wednesday
Holding Above 30 DMA
DLB, NFLX, UAUA, CREE, WHR, BUCY, UNP, CAT, V, ESI, DE, UNP, V, BAC, DHR, URE, JEC, TDG, FAS, UYG, USD, SNDK, MELI, FLS, HDB, VAR, DOW, AMD, AMX, WFC, CEDC, MA, ZION, BKC, MCD, GME, TSL, BYI, CAM, SYNA, ATW, CHL, SWK, ACN, WAB, AMED, ESI, K, WCG
Moving Above 30 DMA = 9
BDX, HLF, MHS, PCLN, PCP, USO, SPG, CLF, WLT
Moving Below 30 DMA = 3
ALGT, CBST, STT
Staying Below 30 DMA
GES, GR, DECK, GMCR, ICE, SWN, GS, BA, FCX, ATI, X, WMT, HANS, PWRD, AGU, MYGN, IPI, POT, MOS, HEAT, VPRT, CGA, FUQI, FAZ, UNG, MON

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