SP500 1,210.65 +13.35 +1.12%
COMPQ 2,504.86 +38.87 +1.58%
Russell 2000 722.40 +15.37 +2.17%
Exchange NYSE NASD
Advancing 2,379 2,166
Declining 695 567
Oil $85.84 +1.85
Gold $1,159.00 +6.20
SOX 397.73 +16.40
VIX 15.59 -0.61
Index Direction Confirmation
VIX Down Yes – SPX
SOX Up Yes – COMPQ
Strongest Sectors: XLF +2.59%…XLY +1.55%...XLI +1.29%
Weakest Sectors: XLV -0.34%...XLU +0.10%...XLP +0.14%
Eight of nine sectors moved higher on Wednesday. Financials, Consumer Discretionary, Technology and Industrials were stronger than the SPX +1.12%.
Sector Watch
Up Trending: XLY, XLI, XLP, XLF, XLK
Horizontal Breakout:
Sideways: XLB, XLE, XLV, XLU
Down Trending:
XLB and XLE are at horizontal resistance and have NOT yet broken through.
Key Resistance Levels
1,216 = Fib extension
1,220 = Sep 25, 2008 resistance
1,255 = Mar 16 BO chart target
Key Support Levels
1,200 = Jul 2008 support
1,178 = Fib extension
Wednesday was revelation day. We now know why a selloff didn’t gain any momentum over the last three weeks…big money was willing to accumulate stock due to their professional expectation of strong earning reports from an improving business climate. Not what the news told us…but what buying action and lack of selling action over the past three weeks shows us.
The SPX broke through 1,200 resistance early and never looked back. Led by strong earnings from bellwethers INTC and JPM, semiconductors and financials had large gains. Better than expected earnings during the first three days of earnings season led by INTC, JPM, FAST, INFY, CSX, LLTC and then UPS after the close on Wednesday has big money buying key stocks on bigger volume.
ZION, C, RF, KEY, JPM, BAC, ALL, WFC, AXP and GS led financial stocks higher. MRVL, TER, NSM, TS, LLTC, MU, NVLS, SNDK and AMAT led the SOX higher.
After the close UPS rose $3.05, 4.66% after reporting adjusted 71 cents earnings vs. estimates of 58 cents.
Wednesday’s strong positive reaction to INTC and JPM earnings as well as the after hours positive reactions to good earnings from UPS is a great third day in the earnings season.
Many individual stocks and ETFs like USD, FAS, ZION, WAB, UYG, SNDK, ATW, UAUA, CREE, BAC, AMED, WFC, AMD, HLF, GS and PCLN had strong gains on Wednesday.
Look at these Charts
(click image to enlarge)
Key Earnings to Watch:
Thursday – AMD, CBST, GE, GOOG, ISRG
Friday – BAC
Guidance:
The SPX closed at 1,210 forming a large white candle reversing the potential hanging man on Tuesday the potential shooting star on Tuesday. Indicating why I teach you not to act on potentially bearish candles without confirmation in a strong up trend.
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 -0.61 and did confirm the higher close on Wednesday.
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 +3.26
QCOM +0.30
GOOG +16.27
BIDU +11.00
NDX 100 stocks stronger than the NDX include: MRVL, DELL, LLTC, STX, MXIM, FSLR, ISRG, WCRX, MCHP, AMAT KLAC, JOYG, BRCM, NTAP, SHLD, LRCX, INTC, ORLY, STLD, HOLX, EXPD, XLNX, PCLN, LOGI, AMZN FLEX, DTV, PPDI, NWSA, SPLS, SYMC, LIFE, JBHT, URBN, FLIR, ERTS, AKAM, CHRW, LINTA, GRMN, HSIC, PDCO, RIMM, BIDU, EXPE, CSCO, ALTR, ALTR, EBAY, PCAR and CERN.
Stocks to Watch on Thursday
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, 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, ALGT, AMED, SWN, ESI
Moving Above 30 DMA = 2
ICE, K
Moving Below 30 DMA = 0
Staying Below 30 DMA
BDX, WMT, HANS, MHS, WCG, PWRD, AGU, MYGN, IPI, POT, MOS, HEAT, VPRT, CGA, FUQI, FAZ, UNG, MON
Intermediate Term Market Trend: Up
Short Term Market Trend: Up
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