SPX Rises in Strong Move Towards Resistance...

DJIA                           10,172.53 +273.28 +2.76%
SP500                          1,086.84   +31.15 +2.95%
COMPQ                        2,218.71   +59.86 +2.77%
Russell 2000                    639.79   +21.50 +3.48%

Exchange                  NYSE              NASD
Advancing                 2,709               2,273
Declining                     384                  422

The SPX broke through Friday's R1 level at 1,081 and closed up 31 points at 1,086. Another wide range day in this high volatility market with the SPX moving from support to near resistance. Friday's R2 level is 1,098.


Hammer stocks BIDU, SNDK, UAUA and CMG were up strong, as were flag stocks VMW, AKAM, DTV and CRM.

I hope you followed our guidance Wednesday morning and did virtual trade both the flags and and hammer patterns. If you did you likely had a very nice gain on Thursday.

Dave's Insight: Continue to Follow Your Rules.


Guidance:
The SPX bounced off support today in a strong move towards resistance. Advancers led decliners 7 to 1 on the NYSE. As long as the SPX stays above support look for stronger stocks like NFLX, AKAM, DTV, VMW, ALK, CAL, AAP, ORLY, ILMN, SRCL, HSY and TIE to trade up.

Short term resistance is at 1,098 the R2 level of Friday's large black candle.

Trade strong stocks up.
Trade weak stocks down.

The VIX fell -3.16 and closed at 30.57.

The short term 3 day trend is up.
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 of the chart and follow your rules.

AAPL +7.31
QCOM +0.31
GOOG +12.99
BIDU +5.23
NDX 100 stocks stronger than the NDX include: BIDU, WCRX, PCAR, JOYG, LRCX, FSLR, WYNN, MICC, LOGI, LINTA, FAST, NWSA, ERTS, VRTX and JBHT.

Stocks weaker than the NDX: CSCO, CEPH, SHLD, COST, APOL, MSFT, CHKP, QCOM, HANS, ORLY, HSIC, HOLX, XRAY, AMGN and CELG.

Stocks to Watch on Friday
Holding Above 30 DMA
TLT, FAZ, NFLX, SNDK, CMG, VMW, AZO, DECK, CRM, SWN, UAUA, UNG, MHS, CHL, LVS
Moving Above 30 DMA = 11
AIV, AMX, ATI, CAM, CLF, CSTR, HAS, HLF, MCD, SPG, UNP
Moving Below 30 DMA = 0

Staying Below 30 DMA
DE, LXK, NTRI, WFMI, WHR, ESI, BYI, DHR, GR, WMT, ZION, STI, PNC, AMD, CAT, CREE, SWK, URE, WFC, BA, JEC, GME, HANS, ACN, DOW, FAS, FLS, PCLN, PCP, TSL, USD, USO, ATW, BAC, GES, MA, V, BUCY, WLT, CLF, GMCR, GS, FCX, X, AGU, IPI, POT, MOS

Intermediate Term Market Trend: Neutral
Short Term Market Trend: Up