SP500 1,159.73 +48.85 +4.40%
COMPQ 2,374.67 +109.03 +4.81%
Russell 2000 689.61 +36.61 +53.61
Exchange NYSE NASD
Advancing 3,003 2,463
Declining 160 336
Oil $76.80 +1.69
Gold $1,200.40 -9.60
SOX 367.48 +20.73
VIX 28.84 -12.11
Index Direction Confirmation
VIX Down Yes – SPX
SOX Up Yes – COMPQ
Strongest Sectors: XLI +5.73%…XLF +5.57%...XLY +5.22%
Weakest Sectors: XLV +2.69%...XLP +2.92%...XLU +3.09%
All nine sectors moved higher on Monday. Industrials, Financials, Consumer Discretionary, Materials and Technology were stronger than the SPX +4.40%.
Sector Watch
Up Trending: XLY, XLI, XLP, XLF
Horizontal Breakout:
Sideways: XLK, XLE, XLB, XLV, XLU
Down Trending:
Key Resistance Levels
1,155 = 1,119 BO chart target – Dec 23
1,178 = Fib extension
1,200 = Jul 2008 support
Key Support Levels
1,145 = 1,133 BO chart target – Dec 31 Low
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,105 - 1,113 = November High
Market symmetry can be amazing. Just last Thursday the SPX closed down -37 points and the INDU was off -347 points while declining issues 3,016 led advancers 173. On Monday the SPX rose 48 points and the INDU was up 404 points and advancing issues 3,003 led declining issues 160.
Excluding the five minute drop (29 points) at 2:42 pm and subsequent rally on Thursday, last week’s range was between 1,094 and 1,205, a 111 point range. As of Monday’s close the SPX has recovered 65 points or 58% of last weeks drop.
Many stocks bounced above the high of the low day and crossed their 30 DMA for new entry signals into the long term trend which is still up. The intermediate 6 month trend is sideways and the 3 day short term trend is also neutral.
At Monday’s close the SPX is 28 points above the middle of its 6 month 175 point price range between 1,044 and 1,219.
Look at this Chart
(click image to enlarge)
Look at these Charts
(click image to enlarge)
Traders still need to focus on trend and buy where they are supposed to buy and sell where they are supposed to sell according to their rules. Don't let the dramatic nature of the correction distract you from the action you should take.
Dave's Insight: Follow Your Rules...still the right action to take.
Guidance:
The SPX gapped and rose to an 1,159 close, regaining most of Thursday’s loss.
Many stocks broke above their 30 DMA on Monday providing numerous break outs. Momentum clearly moved to the upside on Monday as traders began to focus on support bounce opportunities.
Look for entry signals into support bounce continuation on Tuesday.
The VIX fell -12.11 and did confirm the lower close on Friday,.
The short term trend is neutral.
The six-month trend is neutral.
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 +18.13
QCOM +0.87Dave's Insight: Follow Your Rules...still the right action to take.
Guidance:
The SPX gapped and rose to an 1,159 close, regaining most of Thursday’s loss.
Many stocks broke above their 30 DMA on Monday providing numerous break outs. Momentum clearly moved to the upside on Monday as traders began to focus on support bounce opportunities.
Look for entry signals into support bounce continuation on Tuesday.
The VIX fell -12.11 and did confirm the lower close on Friday,.
The short term trend is neutral.
The six-month trend is neutral.
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 +18.13
GOOG +28.51
BIDU +55.29
NDX 100 stocks stronger than the NDX include: URBN, CTSH, FWLT, BIDU, MICC, WYNN, NTAP, ADSK, AAPL, PCAR, CTXS, JOYG, EXPE, AKAM, BBBY, ESRX, NWSA, NIHD, YHOO, EXPD, FAST, SBUX, INFY, FSLR, RYAAY, ISRG, VRSN, BRCM, INTC, GOOG, CSCO, ADBE, STLD, LRCX, XRAY, AMAT, MRVL, FIR, CTAS, SIAL and AMZN.
Weaker than NDX: CMCSA, GILD, GENZ, COST, LINTA, BIIB, APOL, CHKP, AMGN, ADP, CELG, QCOM CEPH, DELL and HOLX.
Stocks to Watch on Tuesday
Holding Above 30 DMA
NFLX, WHR, AIV, OSTK, ICE, EXBD, FAZ, NTRI
Moving Above 30 DMA = 18
ATI, BYI, CAT, CHL, CRM, DHR, GR, HLF, MCD, PNC, SNDK, SPG, STI, SWK, URE, WFC, WFMI, ZION
Moving Below 30 DMA = 0
Staying Below 30 DMA
GME, SYNA, HANS, LXK, WMT, ACN, BA, LVS, MYGN, AMX, BKC, DE, DECK, DOW, FAS, FLS, JEC, PCLN, PCP, TSL, UAUA, UNP, USD, USO, UYG, ATW, AMD, BAC, CREE, GES, MA, V, CAM, SWN, UNG, BUCY, WLT, CLF, MHS, WCG, ESI, GMCR, GS, FCX, X, PWRD, AGU, IPI, POT, MOS
Intermediate Term Market Trend: Neutral
Short Term Market Trend: Neutral
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