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