Nightly Update - SPX, COMPQ, HGX, AAPL, MTH, & SNDK

S&P 500 chart (SPX) - Daily chart
There is no single sector that doesn't look good. Homebuilders are now breaking out and chips are also participating. Those are the two sectors that we were waiting on. However, that doesn't mean that some sectors aren't toppy. For example, the HUI and XAU are toppy here. Some sectors will pull back because they have traded sideways and need to back test. There are no front runners that aren't acting well. The SPX made a new 52 week highs today at 1312.81 and on strong volume as well. As you can see from the chart, the SPX has been trading sideways and consolidating above the ascending triangle for last 3 weeks. If the SPX can take out 1315, then that is confirmation that 1334 is the next price target. The SPX remains in a bullish trend reversal. Today the SPX is up 0.43% at 1311.56. Indicators are moving up along with price.

The Nasdaq Composite (COMPQ)- Daily Chart
The daily chart of the COMPQ illustrates that it has broken out of an ascending triangle pattern. The COMPQ has pulled back on low volume to form a bull flag and backtested support at 2332.90. Indicators and oscillators are bullish and trending and the move up is supported by increasing volume. Today's volume is much better than yesterday. Indices will move first, and stocks will lag and then follow. We just need more time for our stocks. The COMPQ is up 0.61% at 2359.75. Longer term price target is in the 2400's. The COMPQ is stair stepping it's way up. However, this does not mean a license to become over leveraged. Keep your positions balanced within your portfolio.

The Housing Index - Philadelphia (HGX) - weekly chart
One of the strongest sectors this week has been the housing index. Technicals look good. The weekly chart of the HGX shows that it is in a neutral symmetrical triangle pattern. It has completed a wave (3) to (4 ) pullback and also completed an ABC. Furthermore, the weekly HGX chart shows that it is in a failed topping pattern because it made an irregular flat. An irregular flat occurs when wave C at 248.43 is higher than wave A at 231.61. Today the HGX has taken out 275.00, which is a full blown breakout. Once again, all indicators and oscillators are starting to turn up. This week the HGX is up 3.39% at 275.090. The HGX is bullish on all time frames. MTH and RYL are the front runners in this index. MTH for example is up 8% this week.

Apple Computer, Inc. (AAPL) - Daily Chart
The daily chart of AAPL shows that it has completed a wave (3) to (4)pullback. It is in a falling wedge pattern. It never overlapped wave 1 to 2, and that is bullish. Furthermore, AAPL has also completed a back test to the uptrend line of the wedge, and put in it's lows at $57.67. Today AAPL, broke out of wedge and rose 6.04 points to close the day up at $67.21 for a 9.87% gain. All the indicators and oscillators, except for the AROON, are bullish. I believe AAPL will rally to the $80.00 area.

Meritage Homes Corp. (MTH)- Daily Chart
The daily chart of MTH illustrates that it is in a falling wedge reversal pattern. MTH has completed a wave (3) to wave (4) correction. Today, MTH broke up and out of the falling wedge. Falling wedge reversal break outs are fast and furious. I have a conservative short term price target $65.00. The Breakout point was $58.50. Medium term price target is at the 50% Fibonacci retracement level at $74.00. The Aroon just had a bullish cross, and the indicators and oscillators are showing bullish divergence. MTH is up 5.50% at $59.42.

SanDisk Corp. (SNDK)- Daily Chart
The daily chart shows that SNDK has been in a wave 3 to 4 correction since the beginning of this year. Now, however, the correction lows have been put in. So far SNDK has held it's 200 day moving average nicely @ $52.15. SNDK has now broken out of the falling wedge and is up 9.68% at $62.42. Indicators and oscillators are bullish, and showing bullish divergence.

Wednesday April 5th 2006 (6:00pm ET)