Stocks Stabalize at Horizontal Support Levels

DJIA - 25.41, -1.46% SP500 + 1.53, +0.18% NASDAQ Comp. + 7.67, +0.50% Russell 2000 + 4.99, +1.06% Exchange NYSE NASD Advancing 1,947 1,538 Declining 1,829 1,242 Oil $37.78 +$0.19 Gold $820.10 -$0.20 SOX 210.79 +1.70 VIX 43.27 -2.57 The VIX moved down confirming the move up in the SPX on Tuesday. Strongest Sectors: XLE +2.50%...XLF+1.37%...XLV +0.85% Weakest Sectors: XLU -1.89%...XLI -1.72%...XLY -1.29% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK, XLF Down Trending: The broad indices traded in a relatively narrow range on Tuesday suggesting the recent drop in stock prices was slowing as price levels reached the Dec 29 horizontal support area. Advancers led decliners on both the NYSE and Nasdaq. Five of the nine sector ETFs close higher on Tuesday. Today is the low day in the current pull back, indices are at horizontal support and downward momentum abated today. A break above the high of the low day is an entry signal for some short-term traders. Watch for a potential support bounce on Wednesday. Earnings Earnings season started on Monday with AA -0.28 and LPHI +0.51 reporting lower than expected earnings. On Tuesday BMO (Before Market Open) INFY +0.56 and IIIN -0.08 reported better than expected earnings. After the close, LLTC +0.38 also reported better than expected earnings. Wednesday earnings: SCHW, XLNX Thursday earnings: JPM, DNA, INTC Friday earnings: JCI Earnings reports increase significantly next week. Index Commentary The DJIA formed a spinning top as buyers appeared near the Dec 29 low…Tuesday is the low of its recent pullback…closed below its 20, 30 and 50 DMA. The SPX formed a white spinning top…Tuesday is the low day of the recent pullback… closed below its 20, 30 and 50 DMA. The Nasdaq formed a white spinning top with the low a fraction of a point lower than Monday’s low…moved and closed above its 30 DMA…closed below its 20 and 50 DMA. The RUT fell below Thursday’s low…closed just above its 20 and 50 DMA and just below its 30 DMA. Stocks to Watch on Wednesday Have you been watching the number of stocks moving above and below the 30 DMA each day? If you have you might notice how this number in each direction expands and contracts near resistance and support levels. On Monday there was only one moving above and 17 moving below. Notice today’s numbers. Just a clue on why we have been including that number each day. Enjoy! Leading Stocks: Holding Above 30 DMA AYE…PCLN…BAP…PCR…JOSB…AMZN…BIIB…BYI…QSII…OI…FLS…BCO…MOS…ROST…AET…POT…UTX…CAM…CCC…CIR…CL…ESI…GES…JW.A…MYGN…ACL…DNA…HLF…OSIP…AGN…KEX…LAYN…RIO…SHW…AMED…BCR…CAM…FLIR…NGS…NOV…SPN…CTSH…K…NIHD…HP…ATW…GME…MON…RIMM…ICLR…SYNA…BLUD…CERN Moving Above 30 DMA = 10 FWLT…GILD…HDB…IIVI…JEC…LNN…MTD…RIG…SWN…VAR. Moving Below 30 DMA = 8 ADBE…APH…ATK…PCP…PETS…RTN…STRA…TEVA Staying Below 30 DMA GIS…PTNR…AXYS…URBN…SINA…PRGO…PPD…ESRX…CHTT…IRIS…ISRG…SPTN…CELG…ENDP…TECH…ANSS…CHU…EZPW…NILE…PSSI…PSYS…VIVO…WAB…JCOM…MCRS…NDAQ…AAPL…AFAM…AME…DLTR…EPR…FSTR…HAS…LFC…MMM…MTW…NE…NEU…RCI…SOHU…VIP…AMX…CBST…DECK…DV…FLR…MBT…SNA…VMI…WMS Tuesday’s Action Moving Up: MA, POT, SCHN, INFY, NUE, CNX, AEM, BTU, FWLT, NDAQ, ZION, AGU, X, ANR, ADM, CLF, CF Moving Down: FSLR, STRA, PNRA, PCLN Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Down