SPX New High Close on Late Rally...

DJIA 10,997.35 +70.28 +0.64%
SP500 1,194.37 +7.93 +0.67%
COMPQ 2,454.05 +17.24 +0.71%
Russell 2000 702.95 +3.31 +0.47%


Exchange NYSE NASD
Advancing 2,068 1,465
Declining 967 1,202


Oil $84.90 -0.49
Gold $1,161.10 +8.90
SOX 375.76 +4.29
VIX 16.14 -0.34

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

This is a new Low Close for the VIX.

Strongest Sectors: XLE +1.06%…XLK +0.77%...XLY +0.74%
Weakest Sectors: XLB +0.17%...XLF +0.37%...XLV +0.44%

All nine sectors moved higher on Friday. Energy, Technology, Consumer Discretionary and Utilities were stronger than the SPX +0.67%.

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 SPX traded in a narrow range near resistance most of Friday before breaking out to a new high close during the last hour of trading. Transportation, Semiconductors, Energy and Technology stocks were strong as all nine sectors closed higher on the day.


Sellers which might have made a move this week after last week’s three day weekend sold aggressively on Wednesday but had no follow through as the market bounced on Thursday and moved higher on Friday. Sellers had no conviction this week which bodes well for the existing up trend.

Look at these Charts

(click image to enlarge)

The focus will be on earnings season which starts on Monday. Watch the reaction to key stocks. If earnings reports next week are strong and the price reaction is positive expect the current up trend to continue.

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

Guidance:
The SPX closed at 1,194 forming a higher low and higher high on Friday.

Staying with the up trend was rewarded again on Friday 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 -0.34 and did 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.

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

AAPL +1.84
QCOM -0.23
GOOG -1.27
BIDU +5.62
NDX 100 stocks stronger than the NDX include: DISH, NWSA, ISRG, LOGI, ATVI, PPDI,
CTXS, FWLT, STX, CERN, SYMC, JOYG, CEPH, PCAR, NTAP, MXIM, LLTC, AKAM, LIFE, BRCM, LBTYA, MRVL, CTSH, CHRW, ADBE, DTV, MSFT, KLAC, EXPD, CSCO, ORCL, SIAL, MICC, HANS, WYNN, HOLX, INFY, INTC, LRCX, PAYX, YHOO, FISV, SHLD, AMAT, BIDU, XRAY, VRSN, ERTS, ADP and GENZ.

Stocks to Watch on Monday
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, MHS, ACN, WAB
Moving Above 30 DMA = 2
BDX, HANS
Moving Below 30 DMA = 3
ALGT, WCG, PWRD
Staying Below 30 DMA
ESI, AGU, K, SWN, ICE, MYGN, IPI, POT, MOS, HEAT, VPRT, AMED, CGA, FUQI, FAZ, UNG, MON
Intermediate Term Market Trend: Up
Short Term Market Trend: Up