SPX Bounces Up From Friday's S2 Level...Closes at Resistance...

INDU        10,858.14   +46.10 +0.43%
SPX           1,147.70     +5.54 +0.49%
COMPQ     2,379.59     +9.82 +0.41%
RUT              675.43     +7.14 +1.07%

Exchange      NYSE     NASDAQ
Advancers     2,124        1,774
Decliners          883           551

Oil               $76.47    +0.31
Gold       $1,310.30   +14.00
SOX            343.80     +5.66
VIX               22.60     +0.06

Index      Direction    Confirmation
VIX             Up            No – SPX
SOX            Up            Yes – COMPQ

Leading stocks on Tuesday included RVBD, VECO, USD, NTRI, BYI, WFMI, CREE, DECK, CAM, GR, SWK, X, ESI, MHS, PNC, TSL, IPI, HLF, DHR, UNG, WHR, AKS, GES, LVS, PCLN, LXK, NETL, AMX, AGU, A, DLR, RMBS, BA, SKX, SWN, FFIV, UNP, UAUA, FDX, NDAQ, URE, ICE

Losing stocks included MOS, CRM, NFLX, TIE, GMCR, TBT, AMD, SINA, FAZ, GS, ATI, NTES, ATW, CHL, POT, BUCY, DE, VOD, UCO

The SPX, INDU and COMPQ reversed Monday’s pull back and rallied to close near Monday’s close. The RUT however made a new high close at 675, four points higher than Monday’s close. The SPX fell to Monday’s S2 level before reversing and rallying 15 points.


NFLX fell -3.13 and closed at 161.86.

Friday’s Bull Flag Entries on Tuesday
Rising – SPY, DIA, IWM, CMG, NTAP, RVBD, GES, PCLN, FFIV, AGU, TSL, PCP, HLF, LXK, DHR, VMW, SPG
Falling – QQQQ, CRM, VOD, JOYG, BUCY, SINA, GMCR, AKAM, DE

CRM closed below Friday’s low.

The next entry point on many of these charts will be the horizontal resistance breakout. Watch for the breakout entry beginning on Monday.

The SPX returned to its 1,148 resistance. Watch for a potential breakout of this resistance area reached on both Monday and Friday. If the SPX does breakout look at the 1,170 resistance area as the next high probability target.

SPX
Resistance: 1,148, 1,170
Support: 1,130, 1,115, 1,100

Enter bullish trades with a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Monday’s potentially bearish candles were for the most part were not confirmed as advancers led decliners 2.4 to 1.

Exit short term trades according to your rules with a close below the low of the high day. Wait on bearish entry signals for a bounce down from resistance or a close below of the low of the high day.

The VIX rose +0.06 to 22.60, and is still below the 25 benchmark level. The VIX did not confirm the rise in the SPX.

The short term 3 day trend is up.
The three-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   -4.30 – black candle following bearish engulfing
QCOM  -0.52 – bearish engulfing of spinning top
GOOG  -3.24 – hanging man confirming shooting star
BIDU    -1.78 – dark cloud cover

NDX 100 stocks stronger than the NDX include: FWLT, ALTR, LINTA, NTAP, KLAC, ATVI, LRCX, LOGI, MXIM, XLNX, BRCM, CTXS, CTSH, COST and CHKP.

Stocks weaker than the NDX: FLIR, RIMM, ADBE, BIDU, AAPL, PPDI, QCOM, HOLX, CSCO, EXPE, STLD, GOOG, MICC, FLEX and VRTX.

Stocks to Watch on Wednesday
Holding Above 30 DMA
HLF, PCLN, RVBD, AGU, MCD, POT, FFIV, LVS, NFLX, VMW, CMG, CRM, TSL, FCX, SINA, SPG, VOD, AIV, BUCY, CAM, DE, DHR, DOW, PCP, SWK, UNP, UPS, URE, WLT, WMT, A, GMCR, HAS, IPI, JEC, LXK, CAT, ICE, FLS, MHS, ATW, STI, ACN, ATI, AMX, GES, PNC, RMBS, ZION, NDAQ, UAUA, USD, VECO, MA, NETL, ESI, GME, HSY, WFMI, CHL, FDX, NTRI, AMD, TIE, V, ATI, BA, BAC, CRUS, DECK, DLR, GR, HANS, UCO, USO, WHR, AKS, NTES, TLT
Moving Above 30 DMA = 2
BYI, CLF
Moving Below 30 DMA = 0

Staying Below 30 DMA
GS, NYX, POT, TBT, PNC, X, FAZ, CSTR, SNDK, CREE, SWN, UNG, SKX

Intermediate Term Market Trend: Neutral
Short Term Market Trend: Up