Hanging Man Rules the Indices...

DJIA - 25.57, -0.32% SP500 + 2.15, +0.25% NASDAQ Comp. + 0.77, +0.05% Russell 2000 - 0.15, -0.03% Exchange NYSE NASD Advancing 2,250 1,394 Declining 1,469 1,386 Oil $50.05 -$2.19 Gold $895.80 +$12.50 SOX 250.60 -3.81 VIX 37.81 +1.28 The VIX moved up and did NOT confirm the move up in the SPX on Monday. Strongest Sectors: XLF +4.23%...XLB +1.30%...XLV +0.79% Weakest Sectors: XLU -1.30%...XLE -1.10%...XLP -0.28% Sectors were mixed on Monday with XLK closing with 0.00% change, while five sectors showed positive gains and three sectors moved lower. Once again the Financial Sector was the top sector with a +4.23% gain. Financial stocks stronger than +4.23% include: C, RF, BAC, KEY, BK, ZION, AZP, STT, MET, MS, PRU, ALL, PNC, GS and ETF’S UYG and FAS. Leading tech stocks stronger than XLK: YHOO, MA, GOOG, AAPL, AMAT CSCO and HPQ. INTC finished like XLK with no change. Sector Watch Up Trending: Sideways: XLE, XLY, XLV, XLK, XLB Down Trending: XLF, XLP, XLI, XLU The broad indices like the sectors were mixed on Monday with the SPX, DJIA and RUT forming a Hanging Man candle pattern. Even though Monday was essentially a flat day, the SPX opened lower and moved lower for about 25 minutes were it found its low of the day at 845.35. The other indices found their low during the first two hours of trading. From their lows it was rally time with the indices moving to their high of the day and with each index making a slightly higher high than on Friday. With the formation of a Hanging Man and spinning top pattern the indices are again at a potential short term top . Short term traders be ready, which we call a Yellow Alert, for a break of the low of the high day. With the VIX not confirming the SPX move up, a hanging man and the push pause pattern since March 10, short term traders are wise to be alert for a potential pull back on Tuesday. A pull back could be one to two days as that has been the pattern since the March 6 bottom. A pull back could also set up a support bounce entry. (click image to enlarge) Volume on the DJIA was 424 million shares significantly above last weeks Monday through Wednesday volume and down slightly from Friday’s 462 million shares. Last week’s light volume reflects a holiday shortened week with Monday's volume returning to average levels. Earnings are ramping up this week with GS today, CSX, JNJ, FAST and INTC on Tuesday, GE and GOOG later in the week. Index Commentary – Yellow Alert The DJIA formed a hanging man pattern…closed above its 20, 30 and 50 DMA…volume was 424 million. The SPX formed a hanging man pattern…closed above its 20, 30 and 50 DMA. The Nasdaq formed a spinning top …closed above its 20, 30 and 50 DMA. The RUT formed a hanging man pattern… …closed above its 20, 30 and 50 DMA At the Open on Tuesday SPY – spinning top DECK – doji CTSH – doji EBAY – doji SCHN – horizontal breakout GME – doji SHLD – approaching 55 resistance GS – new high…earnings Monday eve XRT – doji USD – doji URE – close above horizontal resistance UYG – approaching horizontal resistance at 4 WYNN – spinning top at horizontal resistance CELG – spinning top after bear flag break LEAP – breaks 30 DMA support Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA BIDU, CLB, BKC, NFLX, DLTR, HANS, ICE, ALGT, DLB, JEC, PWR, VPRT, AMZN, USD, AAPL, CTSH, FLS, JOYG, AXYS, BAP, CAM, GMCR, GPRO, JCOM, JOSB, MUR, WMT, ATW, GR, BIIB, SLGN, SWN, SYNA, SNHY, EBAY, GES, SNA, ORCL, WRC, DECK, HDB, PCP, UYG, FSLR, GME, WCG, RIMM, X, BDX, BYI, CBST, EZPW, HLF, MYGN, MCD, AMX, MHS, WAB, FAS, AFAM, CHL, JW.A, K, MOS, NTLS, RBN, ESRX, PCLN, URE, GILD, AMED, VAR, PCR, PPD, MON, NIHD, SPWRA Moving Above 30 DMA = 0 Moving Below 30 DMA = 3 APEI, PETS, TDG Staying Below 30 DMA RCI, BLUD, DV, ESI, GXDX, STRA, CPLA, ACN, PSYS Intermediate Term Market Trend: Neutral Short Term Market Trend: Up