Markets in Moderate Pullback on Tuesday

1:23 ET DJIA -83...SPX -6.5....Nasdaq -28...RUT -5.6....Sox -5.5....Oil -$3.58 VIX -0.05 After an 1,150 point rally in the DJIA on Friday and Monday stock indices are taking a breather. From a traders perspective this is healthy. The key becomes where does the pullback stop? If support on this pullback becomes a higher low that is positive and becomes a potential entry point for short term bullish trades. Keey your eye on key support levels. For the indices that is the S1 and S2 levels of Monday's large white candle. If those levels hold and buyers step into the market at higher lows that will be a buying opportunity for traders. For the DJIA S1 is the 8,250 area and S2 is the 8,050 area. Since the DJIA has risen above its Oct. 1o low, that 7,882 level is significant relative to the direction of its 6-week intermediate term trend; neutral or down. At this moment the SPX is barely above its Oct. 10 low of 839, which is a key level for the index. Monday's S1 level is 826 and the S2 is 801. So watch the pullback in context of these key support levels. As of this moment only the DJIA has an Intermediate Term Trend reading of Neutral. The Nasdaq and RUT can not change today as they are still trading below their October lows. Airline, Financial, Utility, Basic Material and Healthcare stocks are showing some strength this morning. Tuesday's Early Action Moving Up: BIDU, STRA, UAUA, HANS, PNRA, MA, MON, FWLT, CNX, CF Moving Down: ESRX, ZION, PCLN, POT, AEM, X, BTU, GDX, FSLR, INFY, AMZN, DECK, NIHD, CLF, SOHU