INDU Closes Above 11,000...

DJIA 11,005.97 +8.62 +0.08%

SP500 1,196.48 +2.11 +0.18%

COMPQ 2,457.87 +3.82 +0.16%

Russell 2000 705.06 +2.11 +0.30%

Exchange NYSE NASD

Advancing 1,752 1,486

Declining 1,305 1,216


Oil $84.34 -0.56
Gold $1,161.60 +0.50
SOX 378.97 +3.21
VIX 15.58 -0.56

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

This is a new Low Close for the VIX.

Strongest Sectors: XLF +0.42%…XLP +0.32%...XLU +0.26%
Weakest Sectors: XLB -0.32%...XLV -0.28%...XLY +0.00%

Six of nine sectors moved higher on Monday. Financials, Consumer Staples, Utilities, Energy, Industrials and Technology were stronger than the SPX +0.18%.

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

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 INDU closed above 11,000 for the first time since the fall of 2008 and SPX traded just below its 1,200 resistance level at its intra-day high of 1,199.20 before closing at 1,196.48, a new high close. Trading was in a narrow range of just 4.49 points as VIX fell to its lowest level in over 2 years.


While the broad indices slightly higher on Monday many individual stocks like TSL, MELI, UAUA, ZION, ALGT, BKC, STT, CAT, AMED, CBST, USD, ICE, GR, AMD, FAS, WHR, FLS, SWN and CAM had relatively strong gains for the day.

Look at these Charts

(click image to enlarge)

After the close, AA came with earnings in line with estimates and which was better than the lower than expected results one quarter ago. AA traded near even in after hours trading. Watch for the reaction at the open on Tuesday. While it is only one company it will give us a sense of how big is going to respond to earning. Look for FAST and INFY results before the open.

Key Earnings to Watch:Monday – AA, FAST, INFY
Tuesday – CSX, INTC, LLTC
Wednesday – JPM, JBHT
Thursday – AMD, CBST, GE, GOOG, ISRG
Friday – BAC, PBR

Guidance:
The SPX closed at 1,196 forming a potential shooting star and forming a higher low and higher high on Monday.

Staying with the up trend was rewarded again on Monday by many stocks moving higher.

Continue to trade with the trend. Be mentally flexible.

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

The VIX fell another -0.56 and did confirm the higher 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.

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

AAPL +0.50
QCOM +0.06
GOOG +6.51
BIDU +0.69
NDX 100 stocks stronger than the NDX include: FSLR, EXPE, FLEX, ALTR, NVDA, RYAAY, SRCL, JOYG, FAST, LBTYA, AMAT, GOOG, CTXS, ISRG, ADSK, XLNX, AKAM, MRVL, RIMM, AMZN, LLTC, INFY, CMCSA, YHOO, DELL, BBBY, CA, SYMC, CTSH, ORCL, STLD, KLAC, LINTA, LOGI, LRCX, MCHP, EBAY, PCLN, MXIM, ROST, AAPL, ERTS, ATVI, GILD, QCOM DTV, ORLY and BIDU.

Stocks to Watch on Tuesday
Holding Above 30 DMA
CBST, DLB, NFLX, UAUA, BA, CREE, WHR, WLT, PCLN, PCP, GR, BUCY, UNP, CAT, SPG, V, CLF, ESI, DE, UNP, V, BAC, DE, DHR, URE, JEC, WMT, GES, GMCR, TDG, FAS, UYG, X, USD, SNDK, DECK, MELI, FLS, HDB, HLF, VAR, ATI, GS, DOW, AMD, AMX, WFC, CEDC, MA, ZION, BKC, MCD, GME, FCX, TSL, BYI, USO, CAM, SYNA, ATW, STT, CHL, SWK, ACN, WAB, BDX
Moving Above 30 DMA = 3
ALGT, AMED, SWN
Moving Below 30 DMA = 2
HANS, MHS
Staying Below 30 DMA
WCG, PWRD, ESI, AGU, K, ICE, MYGN, IPI, POT, MOS, HEAT, VPRT, CGA, FUQI, FAZ, UNG, MON

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