Yellow Alert Turns Red as SPX Breaks 1,103 Support...Low of the High Day...

DJIA                          10,293.52  -148.89 -1.43%
SP500                         1,095.31    -17.89 -1.61%
COMPQ                       2,261.80   -27.29 -1.19%
Russell 2000                  645.91    -14.12 -2.14%

Exchange                  NYSE              NASD
Advancing                    625                  587
Declining                   2,458               2,081

Oil           $78.55       -0.06
Gold   $1,240.10       +0.20
SOX        361.39       -6.65
VIX            27.05       +2.17

Index  Direction      Confirmation
VIX      Up                Yes – SPX
SOX    Down            Yes – COMPQ

After a rising slightly higher, the SPX reached 1,118.50, right at the 1,119 resistance area that I alerted you to in this morning's post. The SPX traded between 1,110 and 1,116 until just after 2 pm ET, when selling accelerated and the SPX fell to its 1,095 close.

AAPL, BRCM and CRUS  moved higher on Tuesday. In Friday's Weekly Wrap I said how the market was likely to drift over the next three weeks prior to earnings. We saw some of that drift within its trading range today.

Up trending stocks NFLX, AKAM, SNDK, CMG, VMW, UAUA, CAL, ALK, DECK, SKX, HSY, FFIV, ILMN, LVS, AZO, AAP, TIE, DLR, UNG, UCO, ICE, NETL, BA, CAT, NYX, BIDU, NTAP, SWN and CRM are in bull flag pull backs for the second day today.


Guidance:
Monday's Yellow Alert turned red as a majority of stocks moved lower with the SPX and many stock breaking the low of the high day on Tuesday, giving a potential short term exit on many charts for short term traders. The SPX also closed below its 30 DMA.

I alerted you to also move bullish stops up and be prepared for a potential pull back in Monday's night post.

The Short term support at 1,103 was broken on Tuesday. 1,103 to 1,105 is now short term resistance.

Trade strong stocks up wheen they give entry signals according to your rules.

Trade weak stocks down.

The VIX rose +2.17 and closed at 27.05. Volatility rose above the critical 25 level on Tuesday in confirmation of the SPX move down.

The short term 3 day trend is down.
The six-month trend is neutral.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch, trade with the trend of the chart and follow your rules.

AAPL +3.68
QCOM -0.07
GOOG -2.31
BIDU -0.68
NDX 100 stocks stronger than the NDX include: AAPL, WCRX, BRCM, BIIB, GENZ, EXPE, PCLN, QCOM, AMZN, GRMN, RIMM, COST, LIFE, SIAL and HSIC.

Stocks weaker than the NDX: FWLT, JBHT, FLEX, VRTX, DISH, NVDA, FAST, EXPD, NIHD, SPLS, PCAR, LRCX, APOL, URBN and ATVI.

Stocks to Watch on Wednesday
Holding Above 30 DMA
TLT, NFLX, SNDK, CMG, VMW, TIE, DECK, HSY, DLR, SWN, UNG, UAUA, CRM, CHL, LVS, CRUS, AMX, CLF, HAS, HLF, ICE, MCD, UNP, FFIV, LXK, NTRI, GMCR, NYX, AMD, BA, CAT, DE, GR, NETL, TSL, USO, V, MA, HANS, VECO
Moving Above 30 DMA = 0


Moving Below 30 DMA = 15
A, ACN, AIV, ATI, CAM, DHR, DOW, FCX, MHS, PCP, SPG, USD, URE, WHR, WLT
Staying Below 30 DMA
CREE, PNC, POT, WFMI, WMT, BUCY, WLT, SWK, FAZ, CSTR, ESI, BYI, WMT, ZION, STI, PNC, JEC, GME, HANS, FAS, FLS, PCLN, PCP, ATW, BAC, GES, GS, FCX, X, AGU, IPI, MOS

Intermediate Term Market Trend: Neutral
Short Term Market Trend: Down