The COMPQ and SOX Rise as the SPX Forms a Doji...

Semiconductor stocks rise for the second day in a row as the COMPQ leads the broad indexes and the SPX and INDU pause at horizontal resistance as the SPX forms a doji...

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Exchange     NYSE     NASDAQ
Advancers    1,376        1,114
Decliners      1,592        1,499

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

Leading stocks on Monday included VECO, CREE, MA, CRUS, USD, VMW, RMBS, V, STI, UAUA, FAZ, SNDK, IPI, ATW, NETL, AMD, PCLN, DECK, GES, WHR, TLT, WMT, VOD, WFMI, LXK, UNP, FDX, WLT, TSL, NTRIL, HANS, CHL, DE, POT, NDAQ, CAN, SKX, UNG, NTES, SWK

Losing stocks included CLF, TIE, X, BA, ZION, RVBD, TBT, BAC, FAS, PNC, GMCR, ATI, JEC, ESI, CAM, MOS, AGU, GS, AKS, LVS, FLS, HLF, BUCY, NFLX, MCD, CSTR, DLR, ICE, CRM, SPG, UCO, AIV, CAT, HSY, URE, SWN

The SPX formed a higher high and higher low doji on Tuesday. The SPY traded 209 million shares rising from Monday’s 178 million shares. The SPX reached 1,127.36 in the area of the 1,130 horizontal resistance before pulling back to close at 1,121.

Sectors were mixed with four rising and five sectors falling. Technology was strongest on the strength of semiconductors and financials were weakest. Decliners led advancers 1.1 to 1 on the NYSE.

Stay focused on and trade according to the chart on Wednesday.

Look at these Charts

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VECO higher low support bounce after double bottom reversal
VMW support bounce after return move following an ascending triangle breakout
HOLX horizontal resistance breakout setup
URBN double bottom resistance breakout

Guidance:
SPX
Resistance: 1,130, 1,148
Support: 1,115, 1,100, 1,086

Look to enter bullish trades with a breakout of horizontal resistance or a bounce off support and a break above the high of the low day. There are numerous stocks in our list that have already broken resistance and have paused or pulled back over the past one to three trading days.

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

The VIX rose +0.35 to 21.56, well below the 25 benchmark level.

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   +1.02 - white candle
QCOM  +0.11 – spinning top
GOOG   -1.84 – potential shooting star
BIDU    +0.07 – potential shooting star

NDX 100 stocks stronger than the NDX include: HOLX, ALTR, XLNX, ILMN, URBN, AMAT, CTXS, LRCX, MXIM, ISRG, RIMM, LINTA, LLTC, SHLE and VRTX.

Stocks weaker than the NDX: CMCSA, JOYG, STX, CA, NVDA, VRSN, FLEX, WYNN, YHOO, CERN, CELG, EXPD, PAYX, NIHD and INTU.

Stocks to Watch on Tuesday
Holding Above 30 DMA
HANS, HLF, PCLN, RVBD, AGU, MCD, POT, FFIV, LVS, NFLX, VMW, CMG, CRM, TSL, CLF, FCX, SINA, SPG, VOD, AIV, BUCY, CAM, DE, DHR, DLR, DOW, NYX, PCP, SWK, UNP, UPS, URE, WLT, WMT, A, BYI, GMCR, HAS, IPI, JEC, LXK, AKS, CAT, ICE, X, BAC, FAS, FDX, FLS, GS, MHS, ATW, STI, ACN, ATI, AMX, GES, NTES, PNC, RMBS, UCO, USO, ZION
Moving Above 30 DMA = 5
NDAQ, TLT, UAUA, USD, VECO
Moving Below 30 DMA = 0

Staying Below 30 DMA
TBT, DECK, CHL, GR, HSY, V, FAZ, CSTR, GME, MA, SNDK, BA, CRUS, CREE, TIE, SWN, UNG, WFMI, NETL, SKX, AMD, NTRI, ESI, WHR

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