SPX...The Pause that Refreshes?

DJIA                           10,748.26 -36.88 -0.34%
SP500                           1,159.73  -3.94 -0.34%
COMPQ                        2,374.67  +0.64 +0.03%
Russell 2000                    695.48  +5.87 +0.85%

Exchange                  NYSE              NASD
Advancing                  1,718               1,619
Declining                    1,363               1,075

Oil            $76.37       -0.43
Gold    $1,219.90      +19.50
SOX         367.48       -2.75
VIX            28.84       -0.60

Index  Direction       Confirmation
VIX      Down           Yes – SPX
SOX    Down            No – COMPQ

Strongest Sectors: XLU +0.20%…XLY -0.03%...XLP -0.04%
Weakest Sectors: XLB -1.26%...XLE -0.66%...XLK -0.66%

Eight of nine sectors moved lower on Tuesday. Utilities, Consumer Discretionary, Consumer Staples, Healthcare and Industrials were stronger than the SPX -0.34%.

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

Key Resistance Levels
1,155 = 1,119 BO chart target – Dec 23
1,178 = Fib extension
1,200 = Jul 2008 support
Key Support Levels
1,145 = 1,133 BO chart target – Dec 31 Low
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,105 - 1,113 = November High

After the 49 point SPX rally on Monday, a pause that allows short term profit takers to sell is typical. The questions on this type of pause are:


How big (collectively) are the sellers?

Are there still buyers that are willing to pay a significantly higher price than the were just two days before?

There are some technical techniques that allow us to evaluate these questions. One is the Fibonacci technique that I shared in Monday's post.

A second technique is using the mid section of a large white candle as short term support, for example on Monday's large white SPX candle. The technique doesn't work on a smaller candle like the SPY on Monday. The SPY reflected the full gap on the open and therefore did not draw a large white candle.

If selling is heavy then the 50% Fibonacci level is often broken as is the mid section of a large white candle. However, if buying is stronger, even when selling is heavy, price will stay above the 50% Fibonacci retracement and the mid section of the large candle. When this occurs as it did on Tuesday, it is what I refer to as the “Pause that Refreshes.”

When a support bounce is followed by a “Pause that Refreshes” and the bounce resumes after the pause it will provide even more entry opportunities.

Only three of the eighteen stocks in our watch list which broke out of their 30 DMA on Monday fell below their 30 DMA on Tuesday. See full list below. This is a good indication of short term strength and that we should look for support bounce continuation.

Look at these Charts

(click image to enlarge)

Traders still need to focus on trend and buy where they are supposed to buy and sell where they are supposed to sell according to their rules. Many new traders may be tempted to ignore their rules after pull backs, practice doing the right thing...

Dave's Insight: Follow Your Rules...still the right action to take.

Guidance:
The SPX rose to 1,170 before pulling back and closing at the 1,155 resistance level. On Wednesday watch to see if the SPX stays above the 1,140 support level which is both the mid section of Monday's large white candle and the 50% Fibonacci level from Friday's close to Tuesday's high.

Trade strong stocks up. Look for entry signals into support bounce continuation on Wednesday.

Trade weak stocks down.

The VIX fell a modest -0.52 and is still above last Wednesday's 25 level.

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 and follow your rules.

Adjust your stops according to your rules for up and down trending trades.

AAPL +2.53
QCOM +0.11
GOOG -12.60
BIDU +19.39
NDX 100 stocks stronger than the NDX include: HANS, ERTS, JBHT, BIDU, SHLD, GILD, WYNN, FWLT, MICC, CA, VRTX, WCRX, FAST, RIMM, MXIM, AMAT, IACI, CEPH, AAPL, DTV, COST, INTU, DELL, ILMN, AMGN, URBN, XRAY, SYMC, YHOO, BIIB, ROST, LBTYA, AKAM, CELG, LIFE, EXPD, BBBY, GENZ, QCOM CMCSA, VRSN and EBAY.

Weaker than NDX: PCLN, STLD, GRMN, LINTA, GOOG, ADSK, FSLR, RYAAY, EXPE, APOL, MRVL, INFY, ADBE, BRCM,NTAP, SIAL SBUX, NWSA, INTC, ESRX, NVDA and ALTR.

Stocks to Watch on Wednesday
Holding Above 30 DMA
NFLX, WHR, AIV, OSTK, ICE, EXBD, FAZ, NTRI, BYI, CRM, DHR, GR, HAS, HLF, MCD, PNC, SNDK, SPG, STI, SWK, URE, UNG, WFC, WFMI, ZION
Moving Above 30 DMA = 0


Moving Below 30 DMA = 3
ATI, CAT, CHL
Staying Below 30 DMA
GME, SYNA, HANS, LXK, WMT, ACN, BA, LVS, MYGN, AMX, BKC, DE, DECK, DOW, FAS, FLS, JEC, PCLN, PCP, TSL, UAUA, UNP, USD, USO, UYG, ATW, AMD, BAC, CREE, GES, MA, V, CAM, SWN, BUCY, WLT, CLF, MHS, WCG, ESI, GMCR, GS, FCX, X, PWRD, AGU, IPI, POT, MOS

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

Futures Point to a Lower Open...Use Fibonacci...

BMO – ES -13.75 and NQ -19.75 futures are lower in pre-market trading pointing to a lower open. In pre-market trading AAPL is -3.55, AMZN -1.94, GOOG -5.91, BIDU -10.28, INTC is down 29 cents, BAC is down 33 cents and GS -1.53.

Pre-market trading is being led lower by PCLN, BIDU, GOOG, AAPL, FSLR, AMZN, ISRG, WYNN and JOYG after PCLN released earnings Monday afternoon with revenues and Q2 guidance lower than expected. PCLN is another example of “priced for perfection” followed by less than perfect guidance.

XLF Financials, XLI Industrials and XLV are also leading lower this morning.

Volatility remained above 25 on Monday, so as we guided you Monday morning last week's pull back is not necessarily over.  Higher volatility means you should continue to expect bigger and quicker moves both up and down.

After an abnormally strong move up on Monday a correction is not surprising. Use your Fibonacci tool from Friday's close to Monday's high to give you a sense the magnitude of Tuesday's correction. If the correction is less than 50% use the pull back to identify support bounce entry signals.

The best guidance today is to continue to Follow Your Rules.

Look at these Charts

(click image to enlarge)

Bonds are higher and TLT is 52 cents higher in pre-market.

Lower after Earnings
PCLN -35.68, -14.29%, $1.70 cents EPS vs. estimates $1.66 cents
This morning's PCLN pull back is not with standing one analyst raising their price target from 260 to 315.

Trading Down: PCLN, BIDU, GOOG, AAPL, FSLR, AMZN, SHLD, ISRG, JOYG, WYNN, ICE, UYG, MA, WLT, FCX, GS, CLF, CREE, NFLX, WHR, FAS, X, CAT, AGU, BUCY, ATI, ESI, V, SNDK, URE, DE, BA, PNC, POT, UNP, TSL, UAUA, CRM, WFC, LVS, MOS, WFMI, CAM

Trading Up: FAZ, SYNA, GILD, ADSK

The short term and intermediate term trend are neutral and the long term trend is up.

Trade those charts that meet your rules in the direction of the trend.

The Euro is down 65 pips in overnight trading.
 
SPY is down $1.15 cents and XLF is down 23 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.


Follow your rules in any trading actions today.  Be logical.

SPX
Support = 1,145, 1,125, 1,119, 1,105
Resistance = 1,155, 1,178

At the Open on Tuesday
SPY –
QQQQ –
FAS –
TLT -
FLS –
NTRI -
OSTK -
EXBD -
MA -
ILMN –
AKAM –
SNDK –
NFLX –
AAPL –
SHLD –
WHR –
ZION –
DHR –
DECK –
X –
CLF –
BA –
DOW –
BBY –
MA -
V –
PCLN –
CAT –
PCP –
CREE –

AMD –

UAUA – merger announced

UNP –

DE –

FCX –

GMCR –

Thursday Belonged to Sellers...Monday Belongs to Buyers as SPX Jumps Big...

DJIA 10,785.14 +404.71 +3.90%
SP500 1,159.73 +48.85 +4.40%
COMPQ 2,374.67 +109.03 +4.81%
Russell 2000 689.61 +36.61 +53.61

Exchange NYSE NASD
Advancing 3,003 2,463
Declining 160 336

Oil $76.80 +1.69
Gold $1,200.40 -9.60
SOX 367.48 +20.73
VIX 28.84 -12.11

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

Strongest Sectors: XLI +5.73%…XLF +5.57%...XLY +5.22%
Weakest Sectors: XLV +2.69%...XLP +2.92%...XLU +3.09%

All nine sectors moved higher on Monday. Industrials, Financials, Consumer Discretionary, Materials and Technology were stronger than the SPX +4.40%.

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

Key Resistance Levels
1,155 = 1,119 BO chart target – Dec 23
1,178 = Fib extension
1,200 = Jul 2008 support
Key Support Levels
1,145 = 1,133 BO chart target – Dec 31 Low
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,105 - 1,113 = November High

Market symmetry can be amazing. Just last Thursday the SPX closed down -37 points and the INDU was off -347 points while declining issues 3,016 led advancers 173. On Monday the SPX rose 48 points and the INDU was up 404 points and advancing issues 3,003 led declining issues 160.


Excluding the five minute drop (29 points) at 2:42 pm and subsequent rally on Thursday, last week’s range was between 1,094 and 1,205, a 111 point range. As of Monday’s close the SPX has recovered 65 points or 58% of last weeks drop.

Many stocks bounced above the high of the low day and crossed their 30 DMA for new entry signals into the long term trend which is still up. The intermediate 6 month trend is sideways and the 3 day short term trend is also neutral.

At Monday’s close the SPX is 28 points above the middle of its 6 month 175 point price range between 1,044 and 1,219.

Look at this Chart

(click image to enlarge)

Eighteen stocks in our watch list broke out of their 30 DMA on Monday. See full list below.

Look at these Charts

(click image to enlarge)

Traders still need to focus on trend and buy where they are supposed to buy and sell where they are supposed to sell according to their rules. Don't let the dramatic nature of the correction distract you from the action you should take.

Dave's Insight: Follow Your Rules...still the right action to take.

Guidance:
The SPX gapped and rose to an 1,159 close,  regaining most of Thursday’s loss.

Many stocks broke above their 30 DMA on Monday providing numerous break outs. Momentum clearly moved to the upside on Monday as traders began to focus on support bounce opportunities.

Look for entry signals into support bounce continuation on Tuesday.

The VIX fell -12.11 and did confirm the lower close on Friday,.

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 and follow your rules.

Adjust your stops according to your rules for up and down trending trades.

AAPL +18.13

QCOM +0.87
GOOG +28.51
BIDU +55.29
NDX 100 stocks stronger than the NDX include: URBN, CTSH, FWLT, BIDU, MICC, WYNN, NTAP, ADSK, AAPL, PCAR, CTXS, JOYG, EXPE, AKAM, BBBY, ESRX, NWSA, NIHD, YHOO, EXPD, FAST, SBUX, INFY, FSLR, RYAAY, ISRG, VRSN, BRCM, INTC, GOOG, CSCO, ADBE, STLD, LRCX, XRAY, AMAT, MRVL, FIR, CTAS, SIAL and AMZN.

Weaker than NDX: CMCSA, GILD, GENZ, COST, LINTA, BIIB, APOL, CHKP, AMGN, ADP, CELG, QCOM CEPH, DELL and HOLX.

Stocks to Watch on Tuesday
Holding Above 30 DMA
NFLX, WHR, AIV, OSTK, ICE, EXBD, FAZ, NTRI
Moving Above 30 DMA = 18
ATI, BYI, CAT, CHL, CRM, DHR, GR, HLF, MCD, PNC, SNDK, SPG, STI, SWK, URE, WFC, WFMI, ZION
Moving Below 30 DMA = 0

Staying Below 30 DMA
GME, SYNA, HANS, LXK, WMT, ACN, BA, LVS, MYGN, AMX, BKC, DE, DECK, DOW, FAS, FLS, JEC, PCLN, PCP, TSL, UAUA, UNP, USD, USO, UYG, ATW, AMD, BAC, CREE, GES, MA, V, CAM, SWN, UNG, BUCY, WLT, CLF, MHS, WCG, ESI, GMCR, GS, FCX, X, PWRD, AGU, IPI, POT, MOS

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

The Market is Crashing Up...Futures Point to a Significantly Higher Open after EU Bailout...

9:53 am EDT - there is a small pull back from the market high in the first 20 minutes...watch to see if price holds above the open...if it does watch for the next support bounce and the possiblility for the market to make a higher high and VIX to fall below 25...


BMO – ES +45.25 and NQ +75.00 futures are higher in pre-market trading pointing to a significantly higher open. The EU came with a huge bailout ...in reality no surprise here, It was a matter of time...Remember Dubai or the U.S. banking system or GM?

Someone once said “markets don't crash up.” When that has been said, I have retorted, “oh they do when they gap up.” This morning the market is crashing up. And that is fitting after Thursday's unexplainable 5 minute meltdown and subsequent intraday rally.

In pre-market trading AAPL is +11.61, AMZN +4.02, GOOG +18.72, BIDU+24.55, INTC is up 87 cents, BAC is up 98 cents and GS +5.57.

The key to watch for today regarding the stickability of this pre-market rally is the VIX falling below 25, which is last Wednesday's high.  If it does, this is the momentum shift I wrote about last week that we would be looking for to shift focus back on the short term up trend.

Pre-market trading is being led by XLI Industrials, XLB Materials, XLF Financials, XLK Technology as all sectors are higher. XLU and XLV are lagging.

Trading Down: FAZ
Trading Up: PCLN, MA, DECK, GS, UYG, POT, NFLX, FLS, CLF, WLT, CRM, GES, X, CREE, V, URE, FAS, V, URE, CAT, FCX, WHR, GMCR, ICE, BUCY, AGU, BA, USD, SPG, DE, PNC, ZION, DE, PNC, AMX CHL, SNDK, UNP, HLF, MCD, CAM, MOS, LVS, TSL, SWN, WFMI, BKC, GR, DOW, WFC, STI, ACN, WMT, BAC, UAUA, USO, IPI, MHS, AMD, OSTK, MYGN

At the Open on Monday

SPY –
QQQQ –
FAS –
TLT -
FLS –
NTRI -
OSTK -
EXBD -
MA -
ILMN –
AKAM –
SNDK –
NFLX –
AAPL –
SHLD –
WHR –
ZION –
DHR –
DECK –
X –
CLF –
BA –
DOW –
BBY –
MA -
V –
PCLN –
CAT –
PCP –
CREE –
AMD –
UAUA – merger announced
UNP –
DE –
FCX –
GMCR –

SPX Moves Lower to 1,110 Support...

DJIA                            10,380.43 -139.89 -1.33%
SP500                           1,110.88   -17.27 -1.53%
COMPQ                        2,265.64   -54.00 -2.33%
Russell 2000                    653.00   -19.23 -2.86%

Exchange                   NYSE              NASD
Advancing                     889                 613
Declining                    2,242              2,129

Oil        $75.11           -2.00
Gold    $1,210.00      +13.10
SOX      346.75           -5.79
VIX         40.95          +8.15

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

Key Resistance Levels
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,145 = 1,133 BO chart target – Dec 31 Low
1,155 = 1,119 BO chart target – Dec 23
1,178 = Fib extension
Key Support Levels
1,105 - 1,113 = November High
1,101 = October High
1,087 = Nov 10 Channel low
1,075 = 875 Breakout Chart Target
1,044 - 1,050 = Oct 08 High

This week's correction saw the SPX move from a high of 1,205 to a low of 1.065 with a close at 1,110.

The correction was similar in structure to several previous high volatility sell offs since 1987. This sell off had a unique drop from 2:42 pm to 2:47 pm when the Dow INDU dropped from 10,448 to a low of  9,875. A 573 point drop in just five minutes. This swift drop was followed by a bounce at 2:48 pm that gapped 236 points from 9,928 to 10,164. The Dow INDU then rose to 10, 548 in the next 8 minutes. Between 2:42 pm and 2:57 pm or just 15 minutes the Dow INDU made a round trip move of 1,156 points.

Look at these Charts

(click image to enlarge)

While it is unclear exactly what happened in this 15 minutes, what any experienced professional should realize is that this move was caused by a liquidity squeeze induced by heavy selling order flow and little buying until 2:28 pm.

While this move was dramatic in both its speed and total point move, it is essentially a correction in a long term up trend in the early stages of an economic recovery.

I suggested, in Friday's Weekly Wrap, for traders to study the corrections in May/June 2006 and February 2007 to develop a sense of prior dramatic and intense corrections and how they rebuild in the days and weeks following.

One important realization should be that dramatic sell offs won't necessarily lead to a trend change and that usually capitulation sell offs with dramatic bounces usually mark the bottom of the correction.

Traders still need to focus on trend and buy where they are supposed to buy and sell where they are supposed to sell according to their rules. Don't let the dramatic nature of the correction distract you from the action you should take.

Dave's Insight: Follow Your Rules...still the right action to take.

Guidance:

The SPX fell to its 1,110 support level in a short term trend continuation down trend.

More stocks broke their 30 DMA on Friday while just a few stocks are still above support and in their current up trend. There are more stocks below their 30 DMA than above in our watch list.

We will continue to focus on the short term down trend until momentum clearly moves to the upside.

Your mentally flexibility helped you take advantage of the break of support this week.

The VIX rose +8.15 and did confirm the lower close on Friday,.

The short term trend is down.
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 and follow your rules.

Adjust your stops according to your rules for up and down trending trades.

AAPL -10.39
QCOM -0.17
GOOG -5.53
BIDU -28.53
NDX 100 stocks stronger than the NDX include: MXIM, DTV, GRMN, ATVI, DISH, ADP, FSLR, MRVL, CERN, PDCO, ADBE, MCHP, GENZ, QCOM AMGN, STX, BIIB, INFY, SBUX, STLD, BBBY, CMCSA, SRCL, INTC, LLTC, SPLS, EXPD, PAYX, CELG, APOL and GOOG.

Weaker than NDX: HANS, WCRX, LINTA, SYMC, VRSN, LBTYA, FWLT, NTAP, NIHD, EXPE, AKAM, WYNN, BIDU, AAPL, YHOO, ISRG, JOYG, EBAY, INTU, PCLN and SHLD.

Stocks to Watch on Monday
Holding Above 30 DMA
NFLX, WHR, AIV, OSTK, ICE, EXBD, FAZ, NTRI
Moving Above 30 DMA = 0

Moving Below 30 DMA = 5
BYI, MCD, SNDK, ZION, PNC
Staying Below 30 DMA
URE, DHR, CRM, GME, SYNA, HLF, SPG, GR, HANS, LXK, STI, WFC, WFMI, WMT, ACN, BA, CAT, LVS, MYGN, SWK, 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: Neutral
Short Term Market Trend: Down

Futures Flat...290,000 New Jobs in April...9.9% Unemployment

BMO – ES +1.25 and NQ -2.50 futures are higherer in pre-market trading pointing to a higher open. In pre-market trading AAPL is -0.80, AMZN -0.66, GOOG -0.17, BIDU -0.81, INTC is down 11 cents, BAC is up 18 cents and GS +2.48.

Pre-market trading is being led by XLF Financials, XLK Technology and XLI Industrials.

More stocks are quoting up than down on light pre-market volume. With volatility at higher levels than we have seen in 9 months prices move faster in both directions. Remember the fourth quarter of 2008?

The best guidance today is Follow Your Rules.  Cash is a position.

We will continue to focus on the short term down trend until momentum clearly moves to the upside. Look to tighten stops on any bearish positions that look poised to bounce. Watch those up trending flag stocks from Wednesday night's post for up trending entries.

Bonds are lower and TLT is -$1.34 lower in pre-market.

Lower after Earnings
HANS -6.77, -15.91%, 35 cents EPS vs. estimates 45 cents

Trading Down: HANS, LXK, MA, CREE, WLT, MCD, FAZ, WFMI, USO
Trading Up: GS, PCLN, URE, CRM FLS, NFLX, JEC, UYG, FCX, IPI, AGU, URE, CHL, LVS, TSL, PNC, BUCY, X, UAUA, FAS, ATW, UNP, WHR, BAC

The short term is down and the intermediate term and long term trends are up.

Trade those charts that meet your rules in the direction of the trend.

The Euro is up 63 pips in overnight trading.  Oil is down 45 cents in electronic trading. 

SPY is down 10 cents and XLF is up 6 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today.  Be logical.

SPX
Support = 1,125, 1,119, 1,105
Resistance = 1,145, 1,155, 1,178

At the Open on Friday
SPY –
QQQQ –
FAS –
TLT -
FLS – earnings gap
NTRI -
OSTK -
EXBD -
MA -
ILMN – flag
AKAM – flag
SNDK – flag
NFLX – flag
AAPL –
SHLD – flag
WHR – flag
ZION – flag
DHR – flag
DECK – flag
X –
CLF –
BA –
DOW –
BBY –
MA -
V –
PCLN –
CAT –
PCP –
CREE –
AMD –
UAUA – merger announced
UNP –
DE –
FCX –
GMCR –

Rumors...Questions...Not a Lot of Answers...

DJIA                            10,520.32 -347.80 -3.20%
SP500                           1,128.15   -37.72 -3.24%
COMPQ                        2,319.64   -82.65 -3.44%
Russell 2000                    672.23   -26.35 -3.77%

Exchange                   NYSE              NASD
Advancing                     173                  355
Declining                    3,016               2,444

Oil        $77.11          -2.86
Gold    $1,196.90      +22.30
SOX      352.54          -12.00
VIX          32.80          +7.89

Index  Direction    Confirmation
VIX      Up             Yes
SOX    Down         Yes – COMPQ

Key Resistance Levels
1,145 = 1,133 BO chart target – Dec 31 Low
1,155 = 1,119 BO chart target – Dec 23
1,178 = Fib extension
Key Support Levels
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,119 = December High
1,105 - 1,113 = November High
1,101 = October High
1,087 = Nov 10 Channel low
1,082 = Nov 9 S1 level
1,075 = 875 Breakout Chart Target

Thursday the DJIA had its largest intraday point drop ever. The broad indexes and most stocks had an unprecedented 12 minute drop and pop in which the DJIA moved down over 500 points and then rallied over 500 points. Rumors circulated this afternoon that erroneous PG trades set it off or that a trader at C inadvertently placed an ES e-mini order for 16 billion instead of 16 million sent the market lower and that selling pressure triggered computer sell programs. However, no one seems to know for sure.

Look at these Charts

(click image to enlarge)

Today's V pattern reminded me of what I stated back in November 2005.  Some of you remember an interview that I did in November 2005.  Here is the last question and my answer from that interview:

At this point in your trading career, what is the most important rule you follow to help you be successful?
Every investor should have a trading plan, a well-defined set of rules and use a trading journal. An investor should always identify trend, support and resistance, and momentum. An investor should buy near support and sell near resistance. An investor should buy when a buy signal occurs, and sell when a sell signal occurs - not after the fact. An investor should think in terms of probabilities and always maintain mental flexibility. An investor should have a target and a stop on every trade - no exceptions. Investors should manage their money, realizing that the crash of 1987, or a 9/11 event, is not a matter of if it will happen, but when. An investor is prepared for the worst every single day and is able to survive the worst at all times. Investors should define successful trades as those in which they followed their rules, regardless of whether the trades were profitable or not. Investors should be focused on following their rules all the time.

I've adapted an old Buffet quote to trading. I say, "Rule # 1: Follow your rules. Rule # 2: Don't forget rule #1." To put it another way, an investor should always exercise discipline; discipline in following a well-defined approach. Focus and discipline are the keys to consistent trading success.

Thursday was one of those be prepared for the worst, kind of days.  It's on days like this that being prepared really pays off.  While stocks moved broadly lower bonds TLT and gold GLD moved higher.

Stocks moving higher today on positive earnings MED amd MGA

Look at these Charts

(click image to enlarge)

Look at bearish opportunities in inverse ETF's like SH and SDS and stocks below their 30 DMA and stocks near their 30 DMA if they break through to the downside. Check our watch list below.

Guidance: 
The SPX fell through 9 support levels before hitting bottom at 1,065 and then rallied 60 points to close at 1,128.  The majority of the move lower and rally occurred in about 12 minutes.

More stocks broke their 30 DMA on Thursday while a few stocks managed to stay above support and in their current up trend. There are still more stocks below their 30 DMA than above in our watch list.

Continue to trade with the trend.  Your mentally flexibility helped you take advantage of the break of support.

 The VIX rose +7.89 and did confirm the lower close on Thursday,.

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 -9.73
QCOM -0.96
GOOG -11.09
BIDU -21.51
NDX 100 stocks stronger than the NDX include: SYMC, FISV, DTV, LOGI, ADBE, HOLX, AMZN, EBAY GENZ, LLTC, HANS, VRSN, VRTX, AKAM and GRMN.
Stocks to Watch on Friday
Holding Above 30 DMA
NFLX, WHR, SNDK, ZION, MCD, BYI, ICE, FAZ, NTRI, OSTK, AIV, EXBD, PNC,
Moving Above 30 DMA = 0

Moving Below 30 DMA = 14
URE, DHR, CRM, GME, SYNA, HLF, SPG, GR, HANS, LXK, STI, WFC, WFMI, WMT
Staying Below 30 DMA
ACN, BA, CAT, LVS, MYGN, SWK, 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

Futures Point to a Flat Open...

BMO – ES -1.00 and NQ -3.75 futures are slightly lower in pre-market trading pointing to a lower open. In pre-market trading AAPL is -0.98, AMZN +0.07, GOOG +0.53, BIDU +1.24, INTC is up 1 cents, BAC up 2cents and GS +0.06.

Ag stocks POT and MOS and credit card processors MA and V are stronger in pre-market trading.

Most stocks are near even in light pre-market trading with more than an hour before cash markets open. If cash trading is similar it appears that the short term downward momentum of the last week may have run its course for now and we may see that short term technical bounce.

The key question is will we see a bounce above 1178? If, not then expect a second pull back of some magnitude. We will watch any bounce if it does occur and keep you posted on our view.

We will continue to focus on the short term down trend until a bounce begins to materialize, look to tighten stops on any bearish positions that look poised to bounce. Watch those up trending flag stocks from Wednesday night's post for up trending entries.

Look at these Charts

(click image to enlarge)

Bonds are lower and TLT is 59 cents lower in pre-market trading near Wednesday's low.

Higher on Positive Earnings
FLS +4.30, +4.01%, $1.42 EPS vs. estimates $1.29

Trading Down: PCLN, WFMI, WMT, FAZ
Trading Up: FLS, MA, GMCR, V, POT, MOS, GS, BA, BYI, FCX, CAT, LVS, CLF, FAS, SNDK, X, WFC

The short term is down and the intermediate term and long term trends are up.

Trade those charts that meet your rules in the direction of the trend.

The Euro is down 83 pips and is making a new one year low in overnight trading.  Oil is down another 52 cents in electronic trading. 

SPY is down 2 cents and XLF is up 2 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today.  Be logical.

SPX
Support = 1,155, 1,145
Resistance = 1,178, 1,200

At the Open on Thursday
SPY –
QQQQ –
FAS –
TLT -
FLS – earnings gap
NTRI -
OSTK -
EXBD -
MA -
ILMN – flag
AKAM – flag
SNDK – flag
NFLX – flag
AAPL – flag
SHLD – flag
WHR – flag
ZION – flag
DHR – flag
DECK – flag
X – bullish engulfing
CLF – bullish engulfing
BA –
DOW –
BBY –
MA -
V –
PCLN –
CAT –
PCP – EPS this week
CREE –
AMD –
UAUA – merger announced
UNP –
DE –
FCX –
GMCR –

SPX Moves Lower...Forms Spinning Top...

DJIA                            10,868.12 -58.65 -0.54%
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)

Our bull flag stocks pulled back on Tuesday and continue to be in strong up trends: SNDK, NFLX, AKAM, ILMN, PNC, WHR, DHR, GR, SBUX, SHLD, CRM, FAST, FSLR, ZION, and CMG.

 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)

Stocks moving higher today on positive earnings ICE, DGIT, AMMD and TX.

Look at these Charts

(click image to enlarge)

Look at bearish opportunities in inverse ETF's like SH and SDS and stocks below their 30 DMA and stocks near their 30 DMA if they break through to the downside. Check our watch list below.

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

Futures Point to a Lower Open...

BMO – ES -7.50 and NQ -10.75 futures are lower in pre-market trading pointing to a lower open. In pre-market trading AAPL is -1.29, AMZN -0.73, BIDU +0.50, INTC is down 17 cents, BAC down 13 cents and GS -0.28.

On Tuesday the consolidation pattern on the SPX broke through its 1,178 support area. It would be typical to see a technical bounce. If a bounce does occur the strength of that bounce is important.

Does it break above 1,178? If not, be prepared for more downside. If it does break 1,178, does it make it back to 1,200 the next resistance level? If, not then expect a second pull back of some magnitude. We will watch any bounce if it does occur and keep you posted on our view.

Continue to focus on the short term down trend until a bounce begins to materialize.

Bonds are higher and TLT is 32 cents higher in pre-market moving above Tuesday's high.

Most stocks are quoting lower so look for the open to test Tuesday's lows.
ICE +6.24, +5.51% reports $1.36 EPS vs $1.31 estimate.
IPI reports 16 cents vs. 15 cents estimate

Trading Down: MYGN, BUCY, CREE, FCX, GEX, ,AGU, MHS, X, USO, POT, CLF, NFLX, SNDK, UYG, GS, URE, CAT, UAUA, SWN
Trading Up: ICE, IPI, HLF, PCP, CHL, OSTK, FAZ

Look at these Charts

(click image to enlarge)

The short term is down and the intermediate term and long term trends are up.

Trade those charts that meet your rules in the direction of the trend.

The Euro is down 40 pips and is making a new one year low in overnight trading.  Oil is down another $1.45 in electronic trading. 

SPY is down 62 cents and XLF is down 15 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today.  Be logical.

SPX
Support = 1,155, 1,145
Resistance = 1,178, 1,200

At the Open on Wednesday
SPY –
QQQQ –
FAS –
TLT -
MA -
NTRI -
OSTK -
EXBD -
ILMN – flag
AKAM – flag
DOW –
BBY –
SNDK – flag
AAPL – flag
SHLD – flag
NFLX – flag
BA – flag
WHR – flag
ZION – flag
DHR – flag
V –
PCLN – flag
DECK – flag
CAT –
PCP – EPS this week
X –
CREE –
AMD –
UAUA – merger announced
UNP –
CLF –
DE –
FCX –
GMCR –

SPX Breaks Support...Falls to 50 DMA...

DJIA                            10,926.77 -225.06 -2.02%
SP500                           1,173.60   -28.66 -2.38%
COMPQ                        2,424.25   -74.49 -2.98%
Russell 2000                    709.70   -23.12 -3.15%

Exchange                   NYSE              NASD
Advancing                     441                  408
Declining                    2,666               2,352

Oil        $82.75           -3.44
Gold    $1,168.60      -14.10
SOX      368.48         -17.49
VIX          23.84         +3.65

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

Strongest Sectors: XLV -0.58%…XLP -1.01%...XLU -1.72%
Weakest Sectors: XLB -3.47%...XLI -3.16%...XLY -2.92%

All nine sectors moved lower on Tuesday.  Healthcare, Consumer Staples and Utilities were stronger than the SPX -2.38%.

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
1,216 = Fib extension
1,220 = Sep 25, 2008 resistance
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 broke support as decliners led advancers 6 to 1. Most of our bull flag bounces and setups from Monday pulled back but did hold above support. The broad indexes fell to their 50 DMA where buyers stepped in all afternoon.

Look at these Charts

(click image to enlarge)

Our Tuesday morning highlight stocks TLT, MA, CRM and SH performed relatively well during the trading day.

Look at these Charts

(click image to enlarge)

Our bull flag stocks pulled back on Tuesday and continue to be in strong up trends: SNDK, URE, WHR, DHR, GR, AKAM, SBUX, AAPL, SHLD, CRM, FAST, WFC, PNC, ADSK, KLAC, NKE, FSLR, ZION, NFLX, ILMN and CMG.

Bull flag setups pulling back near their 30 DMA: BA, CAT, SYNA, LRCX, ACN, and SWK.

Up trending stocks falling below their 30 DMA: ATI, DECK, DOW and PCLN.

Stocks moving higher today on positive earnings NTRI, OSTK, EXBD, HLF and MA.

Look at these Charts

(click image to enlarge)

Look at bearish opportunities in inverse ETF's like SH and SDS and stocks below their 30 DMA and stocks near their 30 DMA if they break through to the downside. Check our watch list below.

Guidance:
The SPX broke short term support forming a large black candle and falling 28 points to 1,173. The short term trend is down the next support area is at 1,150. Traders should have shifted their focus to the short term down trend as the SPX broke support.

There are still stocks that are in strong up trends but a large number broke support with the broad averages today. More stocks below their 30 DMA than above in our watch list.

Continue to trade with the trend.  Your mentally flexibility helped you take advantage of the break of support.

The VIX rose +3.65 and did confirm the lower close on Tuesday.

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.

Your stops should have taken you out of up trends breaking support on Tuesday. Adjust your stops according to your rules for up and down trending trades.

AAPL -7.67

QCOM -1.04

GOOG -24.23

BIDU -15.99

NDX 100 stocks stronger than the NDX include: COST, STX, CTSH, ESRX, ILMN, PPDI, HANS, HSIC, VRTX, AMGN, ADBE, PAYX, TEVA, CHRW, ATVI, ADP, GENZ, SPLS and SRCL.

Stocks to Watch on Wednesday

Holding Above 30 DMA

NFLX, WHR, CAT, URE, DHR, CRM, SNDK, ZION, MCD, GME, TSL, BYI, SYNA, SWK, ACN, HLF, ICE, PCLN, SPG, GR, HANS, WFC, MYGN, BA

Moving Above 30 DMA = 1

FAZ

Moving Below 30 DMA = 15

AMX, BKC, DE, DECK, DOW, FAS, FLS, JEC, PCP, TSL, UAUA, UNP, USD, USO, UYG

Staying Below 30 DMA

ATW, AMD, BAC, CREE, GES, MA, V, CAM, CHL, SWN, UNG, ATI, BUCY, WLT, CLF, MHS, WCG, ESI, GMCR, GS, FCX, X, WMT, PWRD, AGU, IPI, POT, MOS

Intermediate Term Market Trend: Up

Short Term Market Trend: Down

Futures Point to a Lower Open...Euro Making One Year Low...

BMO – ES -12.75 and NQ -23.75 futures are lower in pre-market trading pointing to a lower open. In pre-market trading AAPL is -2.55, AMZN -1.27, BIDU -5.99, INTC is down 14 cents, BAC down 13 cents and GS -0.66.

With the Euro making new one year lows amid continuing European debt concerns, futures are lower and financial and energy stocks are lower in pre-market trading with energy stocks giving back all of Monday's gains. The consolidation pattern on the SPX is continuing. Be on alert for a potential break of support in the 1,178 area.

Bonds are higher and TLT is breaking above its horizontal resistance in the 91.50 area.

Most stocks are quoting lower so if cash trading doesn't reverse the overnight direction look for many stocks to move back towards support.

MA +7.15, +2.85% reported 3.46 EPS vs. estimates of 3.14.

Trading Down: FAS, NFLX, CREE, CHL, URE, FCX, DE, UYG, X, GS, CLF, BUCY, CAT. SPG, AMX, SNDK, SNDK, USO, TSL, BA, DOW, ACN, CAM, WFC, ZION
Trading Up: MA, CRM, V, FAZ, HANS

Look at these Charts

(click image to enlarge)

The short term is neutral and the intermediate term and long term trends are up.

Trade those charts that meet your rules in the direction of the trend.

The Euro is down 96 pips and is making a new one year low in overnight trading.  Oil is down $1.42 in electronic trading. 

SPY is down $1.30 and XLF is down 20 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today.  Be logical.

SPX
Support = 1,178, 1,155
Resistance = 1,200, 1,216, 1,220

At the Open on Tuesday
SPY –
QQQQ –
FAS –
TLT -
MA -
ILMN – flag
AKAM – flag
DOW – flag
BBY –
SNDK – flag
AAPL – flag
SHLD – flag
NFLX – flag
BA – flag
WHR – flag
ZION – flag
DHR – flag
V –
PCLN – flag
DECK – flag
CAT –
PCP – EPS this week
X –
CREE –
AMD –
UAUA – merger announced
UNP –
CLF –
DE –
FCX –
GMCR –

SPX Support Bounce to Middle of Trading Range...

DJIA 11,151.83 +143.22 +1.30%
SP500 1,202.26 +15.57 +1.31%
COMPQ 2,498.74 +37.55 +1.53%
Russell 2000 732.82 +16.22 +2.26%

Exchange NYSE NASD
Advancing 2,373 1,986
Declining 702 761

Oil $86.70 +0.55
Gold $1,182.70 +2.60
SOX 385.97 +9.90
VIX 20.19 -1.86

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

Strongest Sectors: XLY+2.01%…XLI +2.00%...XLF +1.92%
Weakest Sectors: XLB -0.08%...XLV +0.49%...XLP +0.58%

Eight of nine sectors moved higher on Monday. Consumer Discretionary, Industrials, Financials and Technology and were stronger than the SPX +1.31%.

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

Key Resistance Levels
1,200 = Jul 2008 support
1,216 = Fib extension
Key Support Levels
1,178 = Fib extension
1,155 = 1,119 BO chart target – Dec 23

The SPX is currently in a consolidation trading range between 1,180 and 1,220 closing on Monday in the middle of the range at 1,202. In a consolidation individual stocks will be stronger, consolidating or weaker. One strategy is to be selective and only trade stronger stocks up and weaker stocks down.


Bull flags with bounces today include: SNDK, URE, WHR, BA, DHR, GR, AKAM, SBUX, AAPL, DOW, SHLD, CRM, FAST, WFC, PNC, ADSK, KLAC, NKE, FSLR and PCLN.

Bull flag setups that could bounce on Tuesday include CAT, ZION, SYNA, ACN, ATI, NFLX, SWK, ILMN, CMG, LRCX and DECK.

Stocks in range include FAS, UYG and DE.

Look at these Charts

(click image to enlarge)

Guidance:

The SPX closed at 1,202 forming a large white candle closing in the middle of its trading range.

Dave’s Insight: A trader must determine the difference between price fluctuation and trend change and trade trend change.

Continue to trade with the trend. Be mentally flexible.

The intermediate term chart target is still 1,255 in approximately nine weeks after the 1,150 breakout on March 16.

The VIX fell -1.86 and did confirm the higher close on Wednesday.

The short term trend is neutral.
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 +5.26
QCOM -0.04
GOOG +4.90
BIDU +20.03
NDX 100 stocks stronger than the NDX include: SBUX, GRMN, WYNN, NWSA, KLAC, EXPD, DISH, PCAR, FAST, STX, LINTA, ISRG, INTU, CMCSA, BIDU, PCLN, LRCX, ADSK, BRCM, YHOO, URBN, JBHT, CHRW, AKAM, EXPE, FLIR, CERN, CSCO, ALTR, TEVA, XLNX, BBBY, FSLR, AAPL, FLEX, FISV, MICC, CTXS, INTC, ROST, LBTYA, ERTS, IACI, CTSH, ORLY, LLTC, SIAL, MXIM, AMAT, APOL, VRSN and MCHP.

Stocks to Watch on Tuesday
Holding Above 30 DMA
NFLX, WHR, UNP, CAT, URE, DHR, JEC, CRM, SNDK, FLS, ZION, MCD, GME, TSL, BYI, SYNA, SWK, ACN, HLF, ICE, PCLN, PCP, SPG, DECK, GR, HANS, DOW, UAUA, WFC, AMX, MYGN, USO
Moving Above 30 DMA = 6
BA, BKC, FAS, USD, UYG, DE
Moving Below 30 DMA = 1
ATW
Staying Below 30 DMA
AMD, BAC, CREE, GES, MA, V, CAM, CHL, SWN, UNG, ATI, FAZ, BUCY, WLT, CLF, MHS, WCG, ESI, GMCR, GS, FCX, X, WMT, PWRD, AGU, IPI, POT, MOS

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

Futures Pointing to a Higher Open...

9:43 am EDT -

Look at these Charts

(click image to enlarge)

BMO – ES +4.75 and NQ +7.75 futures are higher in pre-market trading pointing to a higher open. In pre-market trading AAPL is +2.99, AMZN +1.20, BIDU +7.99, INTC is UP 18 cents, BAC UP 13 cents and GS +2.35.

UAUA and CAL announced their expected merger at a rate of 1.05 UAUA shares for each CAL share. UAUA is up 70 cents and CAL is up 56 cents in pre-market trading.

With the SPX above its 1,178 support watch for a potential support bounce off of Friday's higher low...if the SPX does break 1,178 be prepared for it to drop to the next support level.

Financials XLF, Energy XLE, Home builders XHB and Retail XRT are leading the market higher in pre-market trading.

Look for potential continuation bounces in these bull flag setups on Monday: WHR, CAT, BA, URE, DHR, SNDK, ZION, SYNA, ACN, GR, ATI, PCLN, NFLX, SWK

Trading Down: DHR, CAM, CRM, FAZ, FCX
Trading Up: FAS, GS, ESI, WHR, UYG, NFLX, POT, URE, CAT, UAUA, MHS, V, SNDK, GMCR, CLF, CREE, MOS, X, BUCY, MCD, TSL, BAC, WFC

The short term is neutral and the intermediate term and long term trends are up.

Trade those charts that meet your rules in the direction of the trend.

The Euro is down 89 pips in overnight trading.  Oil is down 15 cents in electronic trading. 

SPY is up 54 cents and XLF is up 14 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today.  Be logical.

SPX
Support = 1,178, 1,155
Resistance = 1,200, 1,216, 1,220

At the Open on Monday
SPY –
QQQQ –
FAS –
ILMN – flag
AKAM – flag
DOW – flag
BBY –
SNDK – flag
AAPL – flag
SHLD – flag
NFLX – flag
BA – flag
WHR – flag
ZION – flag
DHR – flag
V –
PCLN – flag
DECK – flag
CAT –
PCP – EPS this week
X –
CREE –
AMD –
UAUA – merger announced
UNP –
CLF –
DE –
FCX –
GMCR –