SP500 1,165.87 -7.73 -0.66%
COMPQ 2,402.29 -21.96 -0.91%
Russell 2000 698.58 -11.12 -1.57%
Exchange NYSE NASD
Advancing 626 702
Declining 2,471 2,056
Oil $79.97 -2.77
Gold $1,174.60 +6.00
SOX 364.54 -3.94
VIX 24.91 +1.07
Index Direction Confirmation
VIX Up Yes – SPX
SOX Down Yes – COMPQ
Strongest Sectors: XLP +0.36%…XLV +0.32%...XLK -0.43%
Weakest Sectors: XLE -1.58%...XLY -1.43%...XLI -1.27%
Seven of nine sectors moved lower on Wednesday. Consumer Staples, Healthcare, Technology and Financials were stronger than the SPX -0.66%.
Sector Watch
Up Trending: XLY, XLI, XLP, XLF, XLK
Horizontal Breakout: XLE
Sideways: XLB, XLV, XLU
Down Trending:
Key Resistance Levels
1,178 = Fib extension
1,200 = Jul 2008 support
Key Support Levels
1,155 = 1,119 BO chart target – Dec 23
1,145 = 1,133 BO chart target – Dec 31 Low
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
The SPX formed a spinning top after reaching 1,158 just 3 points above its 1,155 support level. Decliners led advancers 4 to 1 on the NYSE and 3 to 1 on the NASDAQ. The SPX and COMPQ closed just below their 50 DMA while the INDU and RUT close above their 50 DMA.
Look at these Charts
(click image to enlarge)
Bull flag setup pulling back near their 30 DMA: AAPL, ADSK, KLAC, SYNA, URE, WFC
Up trending stocks falling below their 30 DMA: ACN, ATI, BA, CAT, DECK, DOW, LRCX, MKE PCLN and SWK
Bullish engulfing and piercing line patterns from our watch list.
Look at these Charts
(click image to enlarge)
Look at these Charts
(click image to enlarge)
Guidance:
The SPX traded within 3 points of its 1,155 support area on Wednesday before rising to close at 1,165. The short term trend is down although downward momentum slowed and buyers controlled a part of Wednesday's trading as the SPX formed a spinning top, setting up a potential short term reversal.
More stocks broke their 30 DMA on Wednesday although some stronger stocks still trading near their 10 and 20 DMA actually closed higher. There are still more stocks below their 30 DMA than above in our watch list.
Continue to trade with the trend. Your mentally flexibility can help you take advantage of a support bounce when it occurs.
The VIX rose +1.07 and did confirm the lower close on Wednesday, although the VIX was down over two points from its intra-day high.
The short term trend is down.
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 -2.69
QCOM +0.03
GOOG +3.39
BIDU -3.47
NDX 100 stocks stronger than the NDX include: GILD, STLD, TEVA, ESRX, APOL, INTU, HOLX, WCRX, URBN, ERTS, ILMN, COST, YHOO, AMZN, BIIB, SBUX, CELG, DELL, GOOG, INFY, BRCM, MCHP, GENZ, EXPE, CEPH, SYMC, NTAP, QCOM, ALTR, CHRW, SRCL, CSCO, PDCO, FISV, PPDI, VRSN and ROST.
Stocks to Watch on Thursday
Holding Above 30 DMA
NFLX, WHR, URE, DHR, CRM, SNDK, ZION, MCD, GME, BYI, SYNA, HLF, ICE, SPG, GR, HANS, WFC, FAZ, AIV, NTRI, OSTK, PNC, STI, WFMI
Moving Above 30 DMA = 2
LXK, WMT
Moving Below 30 DMA = 6
ACN, BA, CAT, LVS, MYGN, SWK
Staying Below 30 DMA
AMX, BKC, DE, DECK, DOW, FAS, FLS, JEC, PCLN, PCP, TSL, UAUA, UNP, USD, USO, UYG, ATW, AMD, BAC, CREE, GES, MA, V, CAM, CHL, SWN, UNG, ATI, BUCY, WLT, CLF, MHS, WCG, ESI, GMCR, GS, FCX, X, PWRD, AGU, IPI, POT, MOS
Intermediate Term Market Trend: Up
Short Term Market Trend: Down
2 comments:
Dave,
I don't comment as often as I should to thank you for all your work on this blog. The extensive commentary and multiple charts in this post really help me stay focused on the trend and not the noise. Please note that your blog IS making a difference!
Dave,
John H said it so well. I too am very disciplined in reading your blogs and realize there is very valuable info there to keep things in perspective and tune out the noise. I have also come to realize the hard way that big moves to the downside in the short term trend should have had me out of all my front month bullish options, even if for small losses. I am readjusting my trading plan relative to short term option trades using tighter stops than what I originally had to prevent bigger losses. For me, it may work better to have my front month options with a stop based on the option price rather than the stock support level. I am hopeful that it will be easier to manage my positions that way. Thankfully, today is a new day and opportunities await me.
Post a Comment