Morning Update - Determining Pattern Price targets

The S&P 500 Large Cap Index (SPX) - Daily chart
Price target remains 1304 to 1334. Yesterday, the SPX finally took out 1304. I believe this is the start of the breakout out of this ascending triangle. To figure out the SPX price target you take the bottom price at 1254 of the ascending triangle and the top price at 1296. You then subtract 1254 from 1296 and you get the total of 42 points. You then add 42 to 1296 you get a total of 1138. I will raise the SPX price target above 1304, once the pattern confirms that it is working. Furthermore, you can see that the SPX is rising on expanding volume. Indicators and oscillators are up. Finally, the 60 minute futures chart is also supporting a move higher in the SPX.

The S&P 100 index (OEX)- Daily Chart
The OEX on the daily chart has broken out of its wave 3 to 4 correction diamond continuation pattern and has been consolidating sideways for the past month. To determine price target for a diamond continuation pattern you look at the price at the top to the diamond at 588.70, and the bottom price of the diamond at 568.40. You then take the bottom price at 568.00 and then subtract it from the top price at 588.00 and you get roughly 20 points. You then add the 20 to 588 and you get a price target of approximately 608.00. That price is still a long way off. The OEX has also been rising on expanding volume. Indicators and oscillators are up. The 60 minute chart shows that the OEX bottomed on bullish divergence and it is now making new MACD highs along with price.

The Semiconductor Index (SOX)- Weekly Chart
The weekly chart of the SOX shows that it is currently in a wave 3 to 4 pull back. The moving averages are holding up nicely and fanning out. This fanning of the moving averages changes the SOX from bearish to bullish. Therefore, we re just waiting on a reversal to the upside. It is highly unlikely that we will cross the 200 week moving average.

The Nasdaq Composite (COMPQ)- Daily chart
On the daily chart, the COMPQ looks poised to break the downtrend line of its larger ascending triangle pattern any day now. The indicators are already hinting at this. The RSI is neutral but pointing upwards and the Williams % and PPO and stochastics are now bullish. It has no bearish divergence whatsoever. As you can see the COMPQ has been rising on expanding volume which supports its move higher. This means that the Nasdaq is healthier and that more stocks are going on to hit buy signals and continue on to make new highs.

SanDisk Corp. (SNDK)
As you can see on the daily chart, SNDK remains in it's ABC corrective channel. It is holding support above the 200 day moving average which is @ $50.44 The PPO is beginning to look bullish and stochastics are turning upwards. Today looks like a turn around for SNDK. Today SNDK is up 5.82% at 56.53.

Bottom line: this is a broad based rally. The market has sectors and sub sectors participating. The Russell 2000, TRAN, SPX, INDU, hardware sector, networking sector etc. This is not one or two stocks moving up but a lot of stocks moving up.