SPX Breaks Low of the High Day...

Tuesday was the twenty third aniversary of the 1987 crash.  The SPX fell -18.81 or -1.59% on Tuesday closing below the low of the high day pattern from Monday’s new high close of 1,184,71and beginning a bull flag pattern.  The SPX closed below its 1,170 support level.  Decliners led advancers 4.77 to 1 on the NYSE... 

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Exchange     NYSE    NASDAQ
Advancers      524           451
Decliners     2,501        2,234

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Index     Direction     Confirmation
VIX          Up              Yes – SPX
SOX         Down         Yes – COMPQ
 
Leading stocks on Tuesday included FAZ, SKX, ZION, GS, GME, MA, UNG, TLT, GMCR, STI, POT, PNC, ACN
 
Losing stocks included UCO, VMW, TSL, CLF, BUCY, TIE, GES, SINA, VECO, CREE, USO, LVS, BAC, X, FCX, AKS, MOS, HLF, RVBD, DECK, FAS, AGU, NETL, IPI, ATW, FLS, JEC, FDX, VOD, WLT, URE, SWN, ESI, AMX, MHS, NFLX, UAL, FFIV, PCLN, CAM, ATI, SPG, CRUS, CAT, WFMI, NTRI, SNDK, CRM, SWK, A, DHR, GR, USD, PCP, DOW, BA, DE, NDAQ
 
Interest rates closed slightly lower, bonds rose, the EURO fell, the SOX closed lower and the VIX closed higher +1.54 at 20.63.
 
Eight of nine sectors moved lower on Tuesday with XLU +0.19% as the only positive sector.
 
SPY pulled back -1.53% in a bull flag pattern and traded 280.4 million shares.

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Bull Flag Patterns to Watch on Wednesday – HLF, AGU, LVS, SINA, VOD, AIV, DOW, WLT, HAS, IPI, FLS, PCLN, DE, JEC, GES, AMX, USD, HSY, FDX, ATI, DECK, UCO, SPG, HANS, MOS, VECO, TBT, WFMI

Bull Flag Patterns with Pending Earnings –
Oct 20 – BA, SWK
Oct 21 – CMG, DHR, FCX, GR, HSY, MCD, SNDK, UAL, UNP, UPS

SPX
Resistance: 1,170, 1,182, 1,190
Support: 1,148, 1,130

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.

Enter bearish entry signals on a close below of the low of the high day or a bounce down from resistance on stocks that are closing below support.

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 -8.51 – gap down white spinning top confirms hanging man
QCOM -0.27 – doji at 30 DMA
GOOG -9.88 – doji potential bearish harami
BIDU -2.58 – bearish harami

NDX 100 stocks stronger than the NDX include: NTAP, ILMN, LBTYA, CMCSA, VRTX, DISHK APOL, IACI and INTC.

Stocks weaker than the NDX: URBN, JOYG, STX, WYNN, STLD, PDCO, CTXS, AMZN, SPLS, MSFT, FLIR, YHOO, MICC, LIFE and AAPL.

Stocks to Watch on Wednesday
Holding Above 30 DMA
HLF, PCLN, AGU, MCD, LVS, CMG, FCX, SINA, VOD, AIV, DE, DHR, DOW, SWK, UNP, URE, WLT, A, HAS, IPI, JEC, LXK, CAT, ICE, FLS, MHS, ATW, ACN, AMX, GES, NDAQ, UAL, USD, MA, HSY, CHL, FDX, NTRI, AMD, V, ATI, BA, DECK, GR, UCO, USO, WHR, BYI, GS, SPG, HANS, MOS, SNDK, SWN, UPS, VECO, SKX, CSTR, CREE, RVBD, TBT, WFMI, NYX, ZION
Moving Above 30 DMA = 0

Moving Below 30 DMA = 10
AKS, BUCY, CLF, FAS, NETL, NFLX, NTES, PCP, TIE, WMT
Staying Below 30 DMA
FAZ, POT, RMBS, TSL, ESI, STI, BAC, GME, CRUS, X, FFIV, TLT, PNC, DLR, VMW, CRM, GMCR, UNG

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