9:00am (EST)

The bulls managed to pull off a huge upset yesterday as the rattled the bears despite being heavy underdogs before the bell.  There were a number of Debbie Downers on Apple (AAPL, $340.65, down $7.83) but shares finished the day down just 2% after falling to a low of $326 shortly after the open. 

A lot will be made of the company’s CEO taking a medical leave of absence and the subject will get old quickly, but no matter what happens over the near-term, Apple is not going to miss a beat.  Too bad it’s a $300+ stock because it makes playing options on the stock expensive.

With Apple recovering, Tech rebounded and the bulls were able to enjoy a cigar.

The Dow gained 50 points to close at 11,837 on Tuesday and made its first close above the 11,800 level since June, 2008.  The index hit a high of 11,858 and our 12,000 target we have had in place since October is just over 1% away.  We have mentioned we are expecting a slight pullback afterwards but we are going on record by saying the index could reach 13,000 by yearend.  Of course, a lot has to go right but the chart is pointing towards 12,500 and then 13,000 for the Dow, longer-term.  

The S&P 500 added 2 free throws and ended at 1,295.  The index is within spitting distance of our 1,300 target and we mentioned a run to 1,325 could be possible on some fluff.  Our weekend work revealed some nice targets for the S&P as well.  If things go right in 2011, the index could see 1,450-1,500 by Christmas.   

Tech struggled for much of the morning but battled back and stayed positive shortly after lunch.  The index managed a 10 point pop when the dust settled and was last seen standing at 2,765.  We mentioned our 3,000 target could be a stretch over the near-term but further signs are pointing towards a possible run to 3,400 over the next 12 months.

Shares of Cree (CREE, $62.71, down $1.06) are getting taking to the woodshed this morning after the company missed Wall Street’s estimates.  The company reported a profit of $49.8 million, or $0.45 a share, up from $33.8 million, or $0.32 a share, in the year earlier period.  Revenue jumped nearly 30% to $257 million from $200 million.  Excluding charges, the company would have earned $0.55 a share which was still well short of the $0.59 a share expected while there revenue number missed by $20 million. 

Cree tried to do damage control as they said earnings were lower than expected due to lower LED component sales but shares are getting spanked in pre-market action.  Cree is down nearly $10  and is under $53.  It’s 52-week low is $47-and change.

As we head to press, futures are mixed; Dow (-6); S&P 500 (-3); Nasdaq 100 (+2).  Subscribers, check the Members Area for the updates.