9:00am (EST)

The market took a breather on Wednesday as the bears applied the pressure from the start of the opening bell on Wednesday.  The major indexes were looking at steep losses but bounced off support as the bulls walked away with one golden nugget of good news.

A lot of yesterday’s nervousness was about the Fed and how much quantitative easing they will be doing but the real story is that the bulls are determined to take this market past its April highs.  

The Dow finished yesterday’s session with a 43 point loss, and closed at 11,126.  The index was down nearly 150 points at one point but used a triple-digit gain to pare its losses from a low of 11,020.  The Dow found support near the 11,000 level and we are still waiting for a close above 11,200.

The S&P 500 fell 3 points and settled at 1,182 after touching a low of 1,171.  We have been mentioning 1,170-1,175 as solid support and it held.  The bulls have been building a nice base above this range for over a week as they continue to make a run at 1,200.

The Nasdaq was the “surprise” winner but looked strong on an overall blue day, adding 6 points to close at 2,503.  Finally!  We have been calling for a close above 2,500 and this was the first since late April.  This clears the way for a run at 2,600-2,650 while support comes in at 2,450.

There are quite a few earnings reports to cover today and we will cover a couple of companies in our 1pm update but we wanted to spread some grapevine gossip and talk about something fun.

Netflix (NFLX, $178.50, up $0.88) surged to an all-time high of $184.74 yesterday after rumors surfaced Apple (AAPL, $307.83, down $0.22) might be interested in acquiring the company.  

Of course, Netflix isn’t the only company on Apple’s wish list of companies they might be going after.  With over $50 billion in its war chest and a market cap approaching $300 billion, Apple could afford to buy any company it wants too.

If we had to pick a Top 3 List for Apple, we would list Akamai (AKAM, $50.39, up $1.74), Western Digital (WDC, $31.59, up $0.64) or Riverbed Technology (RVBD, $58.54, up $1.33) in no particular order.  A sleeper, at 50-to-1 odds, could be Adobe (ADBE, $28.17, up $0.03) although both sides would have to kiss and make-up after all of the verbal bashing the two have put each other through. 

(Special Note: Riverbed Technology has been on fire all year and its chart is a thing of beauty.  The company recently announced a 2-for-1 stock split which will take place on 11/8 to shareholders on record as of 11/1).  

Shares of Netflix have also been on a roll and we initiated coverage nearly a year ago when the stock was at double nickels ($55).  We are also surprised and have been waiting for both Apple and Netflix to announce stock splits but no word yet.

As we head to press, Dow futures are showing a 51 point pop and are at 11,123 while the S&P 500 futures are higher by 7 points to 1,186.  The Nasdaq 100 futures are up 9 to 2,132.  Subscribers, check the Members Area for the updates.