Spinning Top Tuesday...

DJIA - 29.23, -0.34% SP500 - 1.58, -0.17% NASDAQ Comp. + 2.18, +0.13% Russell 2000 - 1.53, -0.31% Exchange NYSE NASD Advancing 2,310 1,372 Declining 1,417 1,343 Oil $59.65 +$0.62 Gold $926.30 +$5.00 SOX 256.33 +5.05 VIX 28.80 -1.44 The VIX moved down and did NOT confirm the move down in the SPX on Tuesday. Today is the lowest close since September 12, 2009. Strongest Sectors: XLU +1.81%...XLB +1.17%...XLK +0.58% Weakest Sectors: XLF -2.03%...XLI -0.75%...XLV -0.74% Five of nine Sectors moved higher on Tuesday. Utilities, Materials, Technology, Consumer Staples and Energy were stronger than the SPX -0.17%. Financial stocks stronger than XLF: C, STT, ALL, MS, PRU, MET, ICE, SCHW, GS and SPG. Leading tech stocks stronger than XLK include: SYMC, HPQ, DELL, EMC, TXN, EBAY, IBM, CSCO, INTC, QCOM, and AAPL. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK Sideways: XLY, XLE, XLV, XLF, XLP, XLI Down Trending: XLU SPX Key resistance levels: 902 = Weekly R1 930 = horizontal 945 = 200 DMA Key support levels: 879 = weekly S2 869 = 30 DMA 866 = 61.8% Fib level The market trended higher on Tuesday until the last hour when profit takers sent stock prices lower. Only the Nasdaq Composite stayed positive for the day. Sixty seven of the NDX 100 moved higher led by AMZN, DELL, COST, FSLR, AMGN and semiconductor stocks MXIM, LLTC, KLAC and XLNX. Weakness in the indices is being attributed to weaker than expected April Housing Starts were reported a 458K against forecast of 494K. News that the Senate had passed restrictions on the credit card industry appeared to create selling pressure in financial stocks. Weak financial stocks ZION, IVZ, KEY, WFC, AXP, NTRS, CB, BAC and AFL led the market lower. Steel stocks SCHN, NUE, X, ATI, AKS and STLD moved higher. Solar stocks FSLR, SPWRA, TSL, LDK and TAN benefited from expectations for industry growth through government spending on energy programs. Look at how these stocks moved... (click image to enlarge) Technically, the VIX did NOT confirm the move down in the SPX. Generally this is bullish. Also the SOX +2.01% was stronger than the Nasdaq which is also generally bullish. Index Commentary The DJIA formed a black spinning top that traded above Monday’s S1 level…closed above horizontal resistance at 8,405…three month chart target 10,340…volume slightly below average at 277 million shares…closed above its 20, 30 and 50 DMA. The SPX formed a shooting star that traded above Monday’s S1 level…3 month chart target of 1,075…closed above its 20, 30 and 50 DMA. The Nasdaq formed a large white candle that confirmed Thursday and Friday’s bullish harami and bounced off its 30 DMA…3 month chart target of 2,065…closed above its 20, 30, 50 and 200 DMA. The RUT formed a black spinning top that traded above Monday’s S1 level….3 month chart target 606…closed above its 20, 30 and 50 DMA At the Open on Tuesday SPY – black shooting star KOL – white shooting star at horizontal resistance FAS – dark cloud cover URE – black spinning top USD – white candle break high of low day STT – white spinning top at horizontal resistance ZION – large black candle pullback to support EBAY – white hanging man above horizontal resistance ADBE – white spinning top WYNN – black candle SCHN – large white candle JNPR – white candle continues support bounce CTV – large white candle continues support bounce BBT – black spinning top OSG – black spinning top above Monday’s S1 level EL – black spinning top above Monday’s S1 level WHR – black spinning top RIMM – white spinning top Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, DLB, VPRT, CTSH, BAP, CAM, GMCR, ATW, GR, SYNA, EBAY, TRLG, FSLR, HDB, PCP, RIMM, WCG, UYG, HLF, AMX, MHS, FAS, AFAM, K, RBN, ESRX, PCLN, VAR, PCR, PPD, HANS, SWN, FLS, TDG, NIHD, RCI, STRA, ACN, JOYG, MON, MUR, PSYS, NTLS, CHL, DECK, MOS, DV, AXYS, BIIB, BYI, CPLA, AAPL, JOSB, SPWRA, SYNA, URE, WAB, X Moving Above 30 DMA = 2 ESI, USD Moving Below 30 DMA = 1 BDX Staying Below 30 DMA AMED, PETS, CBST, GES, WRC, SNA, SNHY, WMT, AMZN, EZPW, GXDX, JW.A, JEC, MCD, PWR, DLTR, DECK, ORCL, ALGT, JCOM, NFLX, GME, GILD, GPRO, MYGN, SLGN, BKC, APEI, BLUD Intermediate Term Market Trend: Neutral Short Term Market Trend: Up