Bearish Harami Tuesday as Uptrend Pauses...

DJIA - 16.09, -0.19% SP500 - 3.44, -0.38% NASDAQ Comp. - 9.44, -0.54% Russell 2000 - 4.27, -0.84% Exchange NYSE NASD Advancing 1,721 1,261 Declining 2,001 1,515 Oil $53.84 -$0.63 Gold $903.70 +$2.10 SOX 268.70 -3.61 VIX 34.53 -0.77 The VIX moved down and did NOT confirm the move down in the SPX on Tuesday. The VIX closed at its lowest level since September 25, 2008. A falling VIX is generally bullish. Strongest Sectors: XLV +1.14%...XLI +0.31%...XLY -0.04% Weakest Sectors: XLF -1.45%...XLE -1.34%...XLP -0.85% Seven of nine Sectors moved lower on Tuesday. Healthcare, Industrials, Consumer Discretionary and Utilities were stronger than the SPX -0.38%. Financial stocks stronger than XLF -1.45% include: ICE, CME, BAC, C, AFL, AOC, IVZ, GS, PRU, MS, CB, MMC, ALL ZION, RF, SCHW and USB. Leading tech stocks stronger than XLK, -0.62% include: AMT, YHOO, EBAY, GLW, MA, ADP, ADBE, CSCO, AAPL, QCOM, GOOG, ORCL, EMC, IBM and SYMC. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY Sideways: XLE, XLV, XLF, XLP, XLI Down Trending: XLU Dave will be doing an Extended Virtual Coaching Options Wednesday for four hours from 11 am ET to 3 pm ET... Financial stocks were the weakest sector on Tuesday down -1.45%, but this was after a 10% gain on Monday. A small pullback caused by profit taking after such a large gain. Airline stocks UAUA, AMR, LCC, DAL and CAL, gambling stocks WYNN, MGM and LVS, ICE after reporting earnings, retailer ARO and PCLN had strong moves on Tuesday. The DJIA actually made a higher high and the SPX, Nasdaq and RUT all formed inside days and bearish harami. This leads us to another Yellow Alert for short term traders on Wednesday looking for a move below Tuesday’s low. The intermediate term traders likely will see any pull back as price fluctuation. The indices had pause days on Thursday and Friday a thrust day on Monday and a pause day Tuesday continuing to follow the pattern of the past 8 weeks. If the indices have another pause/pull back day on Wednesday and it is modest look for another thrust day potentially as early as Thursday. Index Commentary – Yellow Alert The DJIA formed a doji that stayed above Monday’s S1 level and horizontal resistance at 8,405…three month chart target 10,340…volume was near average at 311 million shares…closed above its 20, 30 and 50 DMA. The SPX formed a hanging man/bearish harami above Monday’s S1 level and horizontal resistance of 875…3 month chart target of 1,075…closed above its 20, 30 and 50 DMA. The Nasdaq formed a hanging man/bearish harami candle that closed above Monday’s S1 level and its 200 DMA…closed within two points of short term chart price target of 1,765…3 month chart target of 2,65…closed above its 20, 30 and 50 DMA. The RUT formed a hanging man/bearish harami candle that closed above Monday’s S1 level …3 month chart target 606…closed above its 20, 30 and 50 DMA At the Open on Wednesday SPY – doji bearish harami SCHN –white spinning top KOL – hanging man/bearish harami MEE – hanging man SNDA – bearish engulfing ADBE – white hammer EBAY –large white candle horizontal flag breakout SHLD – black spinning top ISRG – white candle new high close DHR – white candle new high close, above 200 DMA DE – white spinning top new high close above 200 DMA RIMM – doji after short term up trend SPG – bearish harami in ascending triangle pattern QLD doji bearish harami FAS – white shooting star bearish harami Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, ALGT, DLB, PWR, VPRT, AMZN, USD, AAPL, CTSH, AXYS, BAP, CAM, GMCR, JCOM, JOSB, ATW, GR, SYNA, EBAY, GES, SNA, ORCL, WRC, HDB, PCP, UYG, FSLR, WCG, RIMM, X, BYI, CBST, HLF, AMX, MHS, WAB, FAS, AFAM, JW.A, K, RBN, ESRX, PCLN, URE, VAR, PCR, PPD, HANS, SWN, FLS, SNHY, GXDX, TDG, NIHD, RCI, STRA, ACN, AMED, EZPW, JOYG, MON, MUR, PSYS, SPWRA, NTLS, CHL, DECK, DLTR, MOS, NFLX Moving Above 30 DMA = 0 Moving Below 30 DMA = 1 PETS Staying Below 30 DMA GME, CPLA, GILD, GPRO, JEC, MCD, BDX, CBST, MYGN, DV, SLGN, BIIB, WMT, BKC, APEI, BLUD, ESI Intermediate Term Market Trend: Neutral Short Term Market Trend: Up