SPX Closes Higher on Strength in Materials and Energy...

Momentum turned up on Wednesday as breadth strengthened following comments from Fed Chairman Ben Bernanke indicating the Fed would consider further stimulus to the U.S. economy. The SPX rallied to Monday’s R1 before sellers again took control and the SPX finished up +4.08 to close at 1,317.72.

Stocks including SINA, SOHU, CRUS, SLW, IAG, ENTR, NTES and X bounced at their 30 DMA and were among the stronger stocks on Wednesday.

SPX inverted hammer, above 30 DMA +0.31%
INDU inverted hammer, above 30 DMA +0.36%
COMPQ inverted hammer, above 30 DMA +0.54%
RUT inverted hammer, above 30 DMA +0.87%

Seven of nine sectors moved higher on Thursday. Materials XLB +0.87% and Energy XLE +0.75% were the strongest sectors.

Breadth strengthened as advancers led decliners 2.02 to 1 on the NYSE and 2.39 to 1 on the NASDAQ …

Exchange      NYSE      NASDAQ
Advancers      2,013        1,821
Decliners          995           761


Index      Chg.      Close      Direction      Confirmation
VIX         +0.04       19.91         Up                No – SPX
SOX        -1.09      393.87         Down           No – COMPQ

Leading stocks > +2% on Wednesday included SINA, SOHU, CRUS, SLW, CDE, TSL, ATI, LDK, ANR, IAG, ENTR, ESI, KKD, CSTR, NTES, MCP, CLF, AKS, LVS, X, CO, PCX, FFIV, ANF

Losing stocks < -2.0% included DLR

Interest rates TNX fell -0.17, bond ETF TLT gained 27 cents and Financials XLF was up 1 cent. The Euro moved up 229 pips to close at 1.4201 at 5 pm on Wednesday.

SPX
Resistance: 1,321, 1,330, 1,344
Support: 1,310, 1300, 1,288

The short term 3 day trend is down.
The six-month trend is neutral.
The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

AAPL +4.27 – doji, bull flag entry, above 30 DMA
AMZN +2.27 –spinning top, bull flag setup, above 30 DMA
BIDU +3.35 – doji, bull flag setup, above 30 DMA
GOOG +4.25 – spinning top, above 30 DMA
NFLX +7.46 – spinning top, bull flag entry, above 30 DMA
PCLN +3.70 – spinning top, bull flag setup, above 30 DMA
QCOM -0.43 –black candle, flag setup, above 30 DMA

NDX 100 stocks stronger than the NDX include NWSA, CTRP, NFLX, MU, BIDU, NIHD, FFIV, FLEX, SNDK and ALXN.

Stocks weaker than the NDX include ALTR, AMAT, MCHP, NTAP, WCRX, RIMM, XLNX, LLTC, ERTS and ADBE.

Stocks to Watch on Thursday
Holding Above 30 DMA
TIF, KKD, CROX, GMCR, INFA, TPX, AGU, CMG, CRM, HLF, NETL, VMW, ATW, NGLS, CHL, CLF, ENTR, ESI, ACN, CSTR, ARUN, FFIV, ICE, POT, RVBD, AKS, CAM, CAT, COH, CRUS, DECK, DLR, FCX, LVS, NKE, NTES, PCX, SLB, WDC, ZION, SWN, URE, V, DHR, SINA, SWK, SOHU, WTW, ANF, CDE, SLW, TLT, CF, HUM, IAG
Moving Above 30 DMA = 6
ATI, DE, MOS, UCO, UNP, X
Moving Below 30 DMA = 1
DLR
Staying Below 30 DMA
CY, SMH, SWKS, A, DOW, F, FAS, GES, HAS, JNPR, MCP, NDAQ, SNDK, TBT, WLT, ANR, GS, STI, LDK, BAC, TSL, FAZ, TLT, UAL, UNG, VECO, CREE, NVDA, FWLT, MHS, JDSU, GLW, CIEN, IL

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