Yellow Alert Turns Red on SPX...

DJIA - 96.50, -1.03% SP500 - 12.75, -1.27% NASDAQ Comp. - 22.51, -1.13% Russell 2000 - 9.75, -1.70% Exchange NYSE NASD Advancing 796 746 Declining 2,240 1,966 Oil $69.45 -$1.15 Gold $945.80 +$0.80 SOX 290.74 -4.21 VIX 25.99 +1.00 The VIX moved up and did confirm the move down in the SPX on Tuesday. Strongest Sectors: XLU +0.07%...XLP +0.00%...XLV -0.14% Weakest Sectors: XLF -3.71%...XLE -1.45%...XLK -1.42% Seven of nine sectors moved lower on Tuesday. Utilities, Consumer Staples, Healthcare, Materials and Consumer Discretionary were stronger than the SPX -1.27%. Financial stocks stronger than XLF -3.71%: AOC, GS, IVZ, NTRS, MMC, CB, AFL, TROW, ALL, CME, AXP, SCHW, MS, SPG, TRV, JPM, PRU, ICE and STT. Tech stocks stronger than XLK -1.42: MA, ORCL, TXN, AMT, ADP, GOOG, INTC, HPQ, QCOM, IBM, T, EMC, VZ, AAPL, YHOO and MSFT. Sector Watch Up Trending: XLK, XLB, XLY Horizontal Breakout: XLV Sideways: XLE, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 1,007 = Nov horizontal resistance 1,025 = 950 Chart target 1,044 = October horizontal Key support levels: 996 = Thursday’s high 980 = last broken resistance now support 962 = 161.8% Fib extension 944 – 956 = old January/June/July resistance The SPX finally broke the low of the high day turning our Yellow Alert for short term traders to red on Tuesday. The SPX moved from the 1,007 resistance area to the 996 support area which is the S1 level of the August 3 large white candle. The SPX fell to a low of 992.40 today which was at last Thursday’s low 992.49. Watch this key support area of 992 to 996. If broken look for the SPX to fall to the next support at 980. (click image to enlarge)

The VIX and SOX confirmed Tuesday’s pullback. Key stocks DD, MMM and WMT. The Financial sector was the weakest sector today on what appears to be profit taking after the strong gains of the past two weeks. The balance of the sectors including Consumer Discretionary, Materials, Industrials and Technology had modest market equivalent pull backs. PWRD, PCLN and GME experienced nice gains on this down day. AAPL -1.89 QCOM -34 cents GOOG -2.67 BIDU -6.05 Strong Nasdaq 100 stocks included LINTA, AMGN, URBN and VRSN. Most NDX 100 stocks are in up or sideways trends. The technically weakest stocks include: PPDI, YHOO, SYMC, GENZ, FSLR, RYAAY, RIMM and AKAM. Our real time virtual trades since July 23 in GOOG, SPY, ZION, BAC and XLF pulled back with the market today. MA, GRMN and BDK held up relatively well with a gain in MA and minor fluctuations in GRMN and BDK. Flag Setups in Progress: CELG, TEVA, LLTC, MRVL, ALTR, INFY, HANS, DLB, JOYG, GILD, USD, UYG, FAS and URE. Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA PWRD, CPLA, ACN, PSYS, MHS, SLGN, AMED, AMX, NFLX, BYI, CTSH, AAPL, DLTR, PETS, USD, BIDU, FUQI, GMCR, JOSB, ATW, BAP, CAM, DLB, EBAY, FAS, GES, JCOM, NIHD, PCLN, SNHY, TDG, TRLG, UYG, WRC, ESI, MOS, MUR, WCG, SNA, X, CBST, WAB, BLUD, CLB, JOYG, PCP, URE, WMT, EZPW, MON, RBN, STRA, AFAM, CHL, FLS, PWR, VAR, SPWRA, BKC, DV, GR, CLB, HANS, GXDX, JEC, GME, HLF, BIIB, VPRT Moving Above 30 DMA = 0 Moving Below 30 DMA = 4 AMZN, DECK, ESRX, RIMM Staying Below 30 DMA ALGT, HDB, PPD, RCI, SWN, APEI, GILD, ORCL, K, FSLR, GPRO, SYNA, BDX, JW.A, MCD, FAZ, NTLS, ICE, MYGN Intermediate Term Market Trend: SPX, DJIA, RUT = Neutral, Nasdaq = Up Short Term Market Trend: Down