Stocks Drift Lower to Start Holiday Shortened Week

DJIA - 59.42, -0.69% SP500 - 16.25, -1.83% NASDAQ Comp. - 31.97, -2.04% Russell 2000 - 11.19, -2.30% Exchange NYSE NASD Advancing 1,176 981 Declining 2,676 1,908 Oil $39.91 -$2.45 Gold $847.20 +$9.80 SOX 206.66 -5.18 VIX 44.56 -0.82 Strongest Sectors: XLP -0.95%...XLV -2.07%...XLU -2.20% Weakest Sectors: XLB -4.96%...XLF -4.58%...XLE -4.24% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK Down Trending: XLF February oil prices fell as oil trading rotated to the February contracts today after expiration of the January contract on Friday. The VIX again did not confirm the move down in the SPX. Look for lighter volume this holiday shotened week with a partial trading day on Wednesday, Christmas Eve and no trading on Thursday, December 25 Christmas day. Expect sellers and buyers to each take their turn moving stock prices this week and next. At this point a continuation of the current trading range betwee support and resistance are expected to continue. (click images to enlarge) ProphetCharts Index Commentary The DJIA formed a hammer at the 30 DMA after Friday’s inverted hammer. The SPX fell below its 30 DMA and then bounced 14 points to close down but above it s30 DMA. Friday’s inverted hammer did not confirm. The Nasdaq fewll to its 30 DMA and bounced 29 points to close above its 30 DMA and below its 50 DMA. The RUT formed a bearish engulfing pattern with a lower shadow as the RUT bounced off its 30 DMA and rose 15 points in the last half hour of trading to closed 5 points below its 50 DMA. Many of our Holding Above 30 DMA stocks are in bull flag pullbacks! Stocks to Watch on Tuesday Leading Stocks: Holding Above 30 DMA AYE…PCLN…BAP…DLTR…FLR…JCOM…JEC…PCR…ATK…B…IRIS…SNA…WMS…HAS…JOSB…AMZN…BIIB…BYI…HDB…LFC…PSSI…AMX…CERN…FWLT…GME…MTW…QSII…VMI…WAB…OI…CHU…FLS…MBT…BCO…NDAQ…ROST…VIVO…AET…ESRX…UTX…ANSS…APH…CAM…CCC…CIR…CL…DECK…DV…EPR…ESI…GES…GILD…JW.A…MYGN…NILE…NOV…PCP…SPTN…ACL…BLUD…DNA…HLF…OSIP…PSYS… AGN…CHTT…RIMM Moving Above 30 DMA = 3 KEX…LAYN…RCI Moving Below 30 DMA = 20 CBST…CELG…CTSH…EZPW…FSTR…MCRS…MOS…NEU…NGS…NIHD..POT…PPD…PRGO…RIO…RTN…SINA..SOHU..SPN…TEVA…WCG Staying Below 30 DMA SWN…MMM…FLIR…PETS…STRA…BCR…AME…GIS…PTNR…TECH…AXYS…AFAM…MON…MTD…URBN…ICLR…LNN...AAPL…MBT…TECH…SHW Monday’s Action Moving Up: STRA Moving Down: MA, FSLR, POT, MON, SINA, CNX, GS, X, MOS, PCLN, CLF, PNRA, CF, ZION, SOHU, ANR, AGU, BTU, FWLT, MEE, NUE, V, ESRX, IPI, KMT, AEM, GDX, HANS, AFAM ADM, KRE, NIHD, MS, COH, LAMR, SCHN, NDAQ, KBE Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Down