Action Points

The Index Watch , Weekend Review and the Trading Spreadsheet are complete and posted. As far as the market is concerned, the charts suggest a short term top is near (1120 - 1125 area). Once we get there, I think we'll back and fill for a month or so (downside risk in the 1075 to 1050 area) before exploding to the upside with a target in the 1300 - 1350 area.

Breakout Setups (Click on Symbol for Annotated Chart) AHD Atlas Pipeline Holdings NYX NYSE Euronext JEC Jacobs Engineering SUNV Sunovia Energy APL Atlas Pipeline Partners VM Virgin Mobile XTXI Crosstex Energy CEP Constellation Energy DRYS Dry Ships SGMS Scientific Games SIMO Silcon Motion IO ION Geophysical HERO Hercules Offshore ERES eResearch Technology LOPE Grand Canyon Education SB Safe Bulkers SKIL SkillSoft PNSN Penson Worldwide CENX Century Aluminum PCX Patriot Coal TESO Tesco TWI Titan Intl EXM Excel Maritime Carriers FLOW Flow Intl PRGN Paragon Shipping CFX Colfax QRCP Quest Resource SD Sandridge Energy TBSI TBSI Intl QMM Quaterra Resources ACAS American Capital KHD KHD Humboldt Wedag AKRX Akorn PRXI Premier Exhibitions OME Omega Protein GMXR GMX Resources DMAN DemandTec CDII China Direct Industries LYG Lloyds Group HALO Halozyme Therapeutics IMN Imation KDE 4Kids Entertainment ULTR Ultrapetrol URRE Uranium Resources PEIX Pacific Et

S&P 500 Index ($SPX) -- On the Daily Chart , the next area of resistance will be in the 1120 - 1125 area. The first area of support to be aware of is 1060, the lower trendline in the wedge. I think we're going to test the lower part of the wedge (at a minimum) or the 50 MA until we make a run for the 1120 - 1125 area. Even though I think we're going to be much higher in 10 months, I think that will mark an intermediate term top and the correction everyone has expected will occur. This Daily Chart of the index should be kept overhead for those who like to short the market. Until the 8 MA goes under the 50 MA, it's going to be difficult to stay the course with anything more than a day or three. Once they do cross, I'll be more aggressive going short on rallies to resistance. As my Bull / Bear chart illustrates, we are clearly in a Bull Market. Dow Industrials ($INDU) -- The intermediate term target on the Daily Chart is at the upper trendline in the Rising Wedge

Breakout Setups (Click on Symbol for Annotated Chart) LOPE Grand Canyon Education NYX NYSE Euronext ACAS American Capital APL Atlas Pipeline Partners DPDW Deep Down OME Omega Protein XTXI Crosstex Energy VM Virgin Mobile USA PCX Patriot Coal CEP Constellation Energy Partners AHD Atlas Pipeline Holdings SD Sandridge Energy SIMO Silicon Motion Technology GMXR GMX Resources AKRX Akorn QMM Quaterra Resources IO ION Geophysical DAKT Daktonics KRG Kite Realty AVID Avid Technology DRYS Dry Ships HALO Halozyme Therapeutics IMN Imation TIVO TiVo ERES eResearch Technology QRCP Quest Resource MMPIQ Meruelo Maddux Properties FLOW Flow Intl AEHR Aehr Test Systems WRES Warren Resources KHD KHD Humboldt Wedag AMCN AirMedia AERG Applied Energetics SKIL SkillSoft PEIX Pacific Ethanol PINN Pinnacle Gas Resources PRXI Premier Exhibitions CPE Callon Petroleum CXZ Crosshair Exploration & Mining ABK Ambak Financial AHR Anthracite Capt AI Arlington Asset Investme