Bearish Candles Form as Decliners Lead Advancers...

DJIA - 82.38, -0.97% SP500 - 7.91, -0.85% NASDAQ Comp. - 9.02, -0.49% Russell 2000 - 2.33, -0.46% Exchange NYSE NASD Advancing 1,280 1,190 Declining 1,688 1,536 Oil $69.89 -$1.60 Gold $927.10 -$13.30 SOX 263.15 +0.23 VIX 26.35 +1.00 The VIX moved up and did confirm the move down in the SPX on Tuesday. Strongest Sectors: XLE -0.60%...XLY -0.73%...XLU -0.75% Weakest Sectors: XLI -1.04%...XLF -0.99%...XLB -0.96% All nine sectors moved lower on Tuesday. Energy, Consumer Discretionary, Utilities, Technology, Consumer Staples and Healthcare were stronger than the SPX -0.85%. Financial stocks stronger than XLF -0.99%: IVZ, AOC, BAC, TRV, SPG, MET, TROW, NTRS, CB, RF and ALL. Tech stocks stronger than XLK -0.76%: HPQ,INTC, ADP, AAPL, TXN, AMAT, ORCL, MSFT, MA, SYMC and GOOG. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY Sideways: XLE, XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 920 = horizontal end of May high 910 = Thursday’s S1 902 = 50 DMA 894 = 200 DMA 888 = weekly low 875 = horizontal Index Commentary – Yellow Alert The DJIA moved formed a dark cloud cover outside day…closed above Monday’s low…Tuesday is the high day…closed below 200 DMA…three month chart target 10,340…volume was an average 233 million shares…closed above its 50 DMA. The SPX formed a bearish engulfing outside day…closed above Monday’s low…broke below its 20 and 30 DMA…Tuesday is the high day…3 month chart target of 1,075…closed above its 50 and 200 DMA. The Nasdaq formed a bearish engulfing outside day….closed above Monday’s low…Tuesday is the high day…3 month chart target of 2,065…closed above its 20, 30, 50 and 200 DMA. The RUT formed a black spinning top…closed above Friday’s low which is the high day…closed at its 30DMA…3 month chart target 606…closed above its 30, 50 and 200 DMA. At the Open on Tuesday SPY – bearish engulfing QQQQ – bearish engulfing FUQI – white spinning top +4.65% GMCR hanging man SHLD bearish harami FAS – bearish engulfing TRLG – spinning top ICE – black candle ESRX – white spinning top MUR – white spinning top JOYG – black candle breaks low of high day STT – bearish engulfing AMX – bearish harami X – black candle breaks low of high day DECK – black spinning top AMZN – bearish harami outside day AAPL – doji PCLN – black candle breaks low of high day BIDU – bearish harami GES – black spinning top DLB – hanging man SYNA – hanging man NFLX – hanging man Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA BIDU, VPRT, K, DV, CPLA, SYNA, X, BDX, AAPL, GXDX, ORCL, DECK, CPLA, MYGN, DV, STRA, GILD, JW.A, ACN, APEI, PSYS, ESRX, NFLX, BYI, MHS, NTLS, BKC, CBST, HDB, ICE, PCLN, SLGN, USD, AMED, AMX, CHL, CTSH, GES, HLF, JCOM, PPD, WRC, PETS, GMCR, PWR, TRLG Moving Above 30 DMA = 2 ALGT, ESI Moving Below 30 DMA = 9 BAP, GPRO, JEC, WCG, GR, NIHD, SNHY, JOYG, UYG Staying Below 30 DMA BLUD, RBN, FAZ, AFAM, AMZN, ATW, BIIB, FLS, VAR, MCD, PCP, SWN, MUR, RIMM, SPWRA, CAM, CLB, MOS, EBAY, FAS, MON, RCI, SNA, TDG, URE, DLTR, EZPW, WAB, FSLR, WMT, DLB, JOSB, HANS, GME Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral