SPX Support Bounce Fades...Holds Above the 1,040 Support

DJIA                9,985.81  -74.25      -0.74%
SPX                1,047.22     -8.11     -0.77%
COMPQ          2,118.69   -22.85     -1.07%
Russell 2000      599.76     -5.11     -0.84%

Exchange     NYSE     NASD
Advancing    1,069         876
Declining      1,937      1,773

Oil             $73.36   +0.84
Gold     $1,234.20     -4.90
SOX          315.23     -6.27
VIX             27.37    +0.67

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

Leading stocks on Thursday included DOW, FAZ, TSL, ESI, UCO, GR, UAUA, NFLX, BA, FFIV, NTRI, USO, FCX, CMG, VMW, AGU, CHL, UNP, HSY, UPS, PCP, HANS, ICE, FDX

The SPX's support bounce that started on Wednesday ran into resistance at 1,061 after the first hour of trading and the index trended down for the rest of the day reaching a low of 1.045.40 before a small rally during the last hour of trading.

INDU = black candle above support

SPX = black candle above support
COMPQ = black candle above support
RUT = black candle above S1

Support Bounce Setups for Friday - GMCR, HANS, HLF, PCLN, RVBD, AGU, MCD, POT, CLF, FFIV, LVS, NFLX, VMW, CMG, NTES, CRM, AKAM, NTAP, BIDU, QCOM, MRVL, INTU, CSTR, LXK, CAM, MOS

Guidance:
SPX
Resistance: 1,056, 1,071, 1,086
Support: 1,041, 1030, 1,010

Look to enter bullish trades when a new bounce off support and a break above the high of the low day occurs.

Adjust stops on bearish trades for a potential exit if they bounce above the high of the low day. Enter bearish setups with a new bounce down from resistance or break of support

The VIX rose +0.67 to 27.37 holding above the benchmark 25 level.

The short term 3 day trend is neutral.
The two-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     -2.61 – black candle higher high, higher low
QCOM   -0.18 – spinning top
GOOG   -3.64 – black candle, inside day
BIDU     -1.70 – black candle higher high, higher low
NDX 100 stocks stronger than the NDX include: FSLR, NTAP, NIHD, VRSN, CTXS, IACI, LINTA, DTV, EXPE, HANS, PAYX, RYAAY and FLIR.

Stocks weaker than the NDX: PDCO, STX, FLEX, HSIC, MRVL, VRTX, STLD, PCLN, ISRG, WYNN, ALTR, BIIB, SHLD, URBN and CSCO.

Stocks to Watch on Friday
Holding Above 30 DMA
TLT, HANS, HLF, PCLN, RVBD, AGU, MCD, POT, FFIV, LVS, NFLX, FAZ, VMW, CMG, NTES, CRM, WMT, TSL
Moving Above 30 DMA = 0

Moving Below 30 DMA = 4
CLF, GES, GMCR, SPG
Staying Below 30 DMA
BYI, CHL, CSTR, FCX, FDX, HAS, HSY, LXK, NDAQ, SINA, UPS, VOD, WLT, A, BUCY, CAT, DE, GR, IPI, PCP, RMBS, UNP, X, AKS, AMX, CAM, FLS, GME, GS, MA, NYX, SNDK, SWK, URE, BA, CRUS, ACN, AIV, ATI, CREE, DECK, DHR, DOW, FAS, STI, TIE, UAUA, UCO, USO, V, DLR, ICE, USD, PNC, SWN, ZION, UNG, VECO, WFMI, NETL, SKX, AMD, JEC, NTRI, ESI, BAC, MHS, WHR

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