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