I've Made Up My Mind...the Market is Going Down...Don't Confuse Me With the Facts...

DJIA                           10,249.54  +225.52 +2.25%
SP500                          1,098.38    +27.67 +2.58%
COMPQ                        2,281.07    +58.74 +2.64%
Russell 2000                    660.52    +19.56 +3.05%

Exchange                  NYSE              NASD
Advancing                  2,607               2,188
Declining                      458                  535

Oil            $72.86        +0.28
Gold      $1,22.60        -4.20
SOX         360.20       +12.59
VIX            30.17        -5.37

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

Strongest Sectors: XLE +4.33%…XLF +3.13%...XLB +3.09%
Weakest Sectors: XLP +1.71%...XLU +2.10%...XLV +2.17%

All nine sectors moved higher on Wednesday. Energy, Financials, Materials and Industrials were stronger than the SPX +2.58%.

Sector Watch
Up Trending:
Horizontal Breakout:
Sideways: XLY, XLI, XLP, XLF, XLK, XLE, XLB, XLV, XLU
Down Trending:

Key Resistance Levels
1,101 = October High
1,105 - 1,113 = November High
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,145 = 1,133 BO chart target – Dec 31 Low
Key Support Levels
1,087 = Nov 10 Channel low
1,071 = May 20 Low
1,044 - 1,050 = May 25 & Feb 8 low, Oct 08 High

The Facts on the SPX
A MACD bullish divergence has been forming for the past two weeks.
VIX formed a MACD bearish divergence over the past two weeks suggesting fear will fall.
Tuesday was a higher low making what I call a half signal. SPX needs a higher high to have a new short term up trend.
Wednesday forms a bullish engulfing pattern, just five points from making a higher high
Closes above 10 DMA.
Over the past 8 trading days the SPX is up 27 points.
Over the prior 8 trading days the SPX was down 88 points.
Over the past 8 trading days 4 have been up and 4 have been down.

Energy, Financial and Airline stocks rally

Look at the SPX five days after last week's low at 1,040 and five days after the Feb 8 low at 1,044
Did you know that today's close five days after is 23 points higher than the February 12 close five days after?

Also check out UAUA and LCC

Look at these Charts

(click image to enlarge)

Dave's Insight: Continue to Follow Your Rules.

Guidance:
The SPX opened higher and closed above Tuesday's high at 1,098. Watch for a breakout of
May 27 high of 1,103 on Thursday.

NFLX, DECK, AAPL, ORLY, BRCM and SNDK bounce after one to two day pull back as counter trend move fails to materialize.

PCLN, RIMM and NIHD reversed their bear flag signals.

Bear Flag Setups: RYAAY, ISRG, ADBE, URBN, CMCSA, GOOG, SBUX do not give entry signal as SPX rallies.

Trade strong stocks up.
Trade weak stocks down.

The VIX fell -5.37 and closed at 30.17.

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 of the chart and follow your rules.

AAPL +3.12
QCOM +0.95
GOOG +11.00
BIDU +2.42
NDX 100 stocks stronger than the NDX include: AMGN, JOYG, NIHD, STX, STLD, LRCX, MICC, FWLT, LOGI, RIMM, MRVL, LINTA, AKAM, NWSA, URBN, BRCM, CTSH, CEPH, FSLR, VRTX, NTAP, ILMN, SBUX, EXPD, LBTYA, ESRX, INTU, INFY, CELG, ALTR, BIDU, ROST, PDCO, GRMN, SYMC, XLNX, GENZ, KLAC, ISRG, XRAY and PCAR.

Stocks weaker than the NDX: PPDI, APOL, DELL, HOLX, IACI, YHOO, NVDA, TEVA, CHKP, AAPL, FISV, EBAY and CA.

Stocks to Watch on Thursday

Holding Above 30 DMA
EXBD, NTRI, FAZ, NFLX, SNDK, AZO, DECK, LXK
Moving Above 30 DMA = 11
CRM, DE, HAS, HLF, ICE, LVS, OSTK, SWN, UAUA, UNG, WFMI
Moving Below 30 DMA = 0

Staying Below 30 DMA
ATI, SYNA, WHR, ESI, BYI, DHR, GR, MCD, WMT, ZION, STI, PNC, AIV, AMD, CAT, CREE, SPG, SWK, UNP, URE, WFC, BA, JEC, CHL, GME, HANS, ACN, AMX, DOW, FAS, FLS, PCLN, PCP, TSL, USD, USO, UYG, ATW, BAC, GES, MA, V, CAM, BUCY, WLT, CLF, MHS, GMCR, GS, FCX, X, AGU, IPI, POT, MOS

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