Markets Give Back Friday's Gains

DJIA - 65.15, -0.75% SP500 - 11.16, -1.27% NASDAQ Comp. - 32.38, -2.10% Russell 2000 - 15.86, -3.39% Exchange NYSE NASD Advancing 1,098 724 Declining 2,722 2,134 Oil $44.51 -$1.77 Gold $835.40 +$16.50 SOX 209.22 -3.72 VIX 56.76 +2.48 Strongest Sectors: XLI -0.04%...XLP -0.09%...XLV -0.20% Weakest Sectors: XLF -4.12%...XLU -1.56%...XLK -1.11% Sector Watch Up Trending: Sideways: XLE, XLP, XLU Down Trending: XLF, XLY, XLV, XLI, XLB, XLK Stock indices pulled back on Monday and held above support. As we stated Friday, watch for confirmation of Friday's support bounce...well, confirmation did not occur. So continue to watch on Tuesday. Watch for any breaks of support that would indicate equities are headed back to the lower end of the trading range of the past 9 weeks before they are headed higher.

As long as charts stay above their recent break outs of inverse head and shoulders, double bottoms and other reversal patterns, look for short-term entry to the upside.

Watch the stocks we mentioned in Friday's post for support bounce follow through and our Stocks to Watch for Tuesday list.

Index Commentary

The DJIA did not confirm Friday's hammer and bullish harami...formed an inside day while clsoing just below its 30 DMA.

The SPX did not confirm Friday's hammer as formed a black spinning top with a higher low while closing just below its 30 DMA.

The Nasdaq did not confirm Friday's piercing line pattern while making a higher low and closing below its 30 DMA.

The RUT did not confirm Friday's piercing line pattern while making a higher low and closing below its 30 DMA.

ProphetCharts

Stocks to Watch on Tuesday Leading Stocks: Holding Above 30 DMA AYE…EZPW…PCLN…BAP…DLTR…FLR…FSTR…JCOM…JEC…PCR…ATK…B…IRIS…RTN…SNA…WMS…HAS…JOSB…AMZN…BIIB…BYI…HDB…LFC…PSSI…AMX…CERN…FWLT…GME…MTW…NEU…QSII…VMI…WAB…OI…PPD…CHU…FLS…MBT…RIO…AAPL…BCO…MOS…NDAQ…ROST…SHW…VIVO Moving Above 30 DMA = 5 AET…ESRX…NGS…POT…UTX Moving Below 30 DMA = 12 ANSS...CCC…CTSH…DECK…DV…EPR…GILD…JW.A…LNN...MCRS…NIHD…NILE Staying Below 30 DMA DGIT…LAYN…NOV…OSIP…SINA…SOHU…SWN…MMM…FLIR…PETS…SPTN…STRA…BCR…CL…ACL…AIRM…AME…CBST…CHTT…GIS…MYGN…PRGO…PTNR…TECH…AXYS…PRXL…RCI…AFAM…AGN…CAM…ESI…HLF…MON…MTD…PCP…POT…TEVA…URBN… ICLR…MBT Monday’s Action Moving Up: AEM, POT GDX, ESRX, PNRA, ANR Moving Down: STRA, FSLR, PCLN, AFAM, SOHU, CLF, ZION, CF, NIHD, LAMR, X, SCHN, NDAQ, GS, MEE, KBE, NUE, KRE, Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Down