SPX and INDU Make New High Close...

Stocks sold off early before the market found support at a higher low than Monday.  The SPX closed at 1,258.55, up +0.97 or +0.08%.  On Tuesday each of the broad indexes continued the trading pattern since last Thursday of a very narrow range on light volume.  SPY and QQQQ traded fewer shares than they did on Monday.  DIA and IWM had increased volume.  INDU made a 28 month closing high.

(click image to enlarge)

SPX doji at resistance

INDU white spinning top

COMPQ black spinning top at resistance

RUT black spinning top

Breadth weakened on Tuesday as decliners led advancers 1.07 to 1 on the NYSE and 1.42 to 1 on the NASDAQ…

Exchange       NYSE          NASDAQ

Advancers      1,450              1,091

Decliners        1,554              1,554

(click image to enlarge)

Index Direction     Confirmation

VIX      Down            Yes – SPX

SOX    Down            Yes – COMPQ

Leading stocks on Tuesday included TBT, UNG, TIE, ZION, STI, GME, DLR, SWN, UCO, AGU, VECO, AMX, PNC, FWLT, URE, AKS, POT, BAC, AMD, HOLX, NTES, MHS, X, DISH

Losing stocks included IPI, LXK, NTRI, LDK, RVBD, TLT, HAS, ARUN, LVS, DECK, TSL, CF, GES, SNDK, HANS, SINA, INFA, ATI, WLT, CMG, ATW, SOHU, A, VMW, CAKE, F, CRUS, NETL, BYI, SKX, FLS, HSY, CSTR, GMCR, UAL, CHL, CAN, CAM, NDAQ, SPG, CRM, USD, CAT, GS, HLF, FCX, RMBS, SLB 

Interest rates rose on Tuesday and bonds moved lower.  The Euro closed down 48 pips at 1.3115 at 5 pm ET. 

The SOX fell -1.61, closing at 410.66 on Tuesday.  The VIX fell -0.15 and closed at 17.52.

Six of nine sectors moved higher on Tuesday with Energy XLE +0.37% and Utilities XLU +0.35% leading all sectors. 

Moves on Tuesday

Continuation – URE, CF, GME, FAS, FLS, FCX, ZION, STI, WFC, BAC, XLF, SWK, NUE, STLD, A, DHR

Resistance Breakout –NYX

Bull Flag Bounce – AZO, PNC, TBT, SPG, BYI

MACD Divergence Bounce –

Support Bounce – V, MA, RMBS,

Bear Flag Break – TLT, TSL, JASO

Break of Support – CMG, HAS

Due to the small move in the SPX our Bull Flag Setups and Horizontal Breakout Setups are similar to Monday night...

Setup Charts to Watch

Bull Flag Setups – X, SNDK, LVS, NTRI, ATW, WLT IPI, NTAP, AMZN, DECK, UNP, AKS, CAT, DE, GOOG, JEC, GR, ILMN, FFIV, HSY, SINA, CLF, ATI, NDAQ, F, WFMI, GES, WYNN, AMD, ACN, CREE, NETL, USD, CRUS

Horizontal Breakout – UNG, VMW, MOS, WHR, GS, ICE, AIV, C, SLB, AGU, DOW

MACD Divergence – NFLX, CSTR, AKAM, BIDU, LDK,

Bear Flag Setups – SKX

Horizontal Support Breakout –CAKE, LDK

Continue to trade with the trend of the chart you are trading.

SPX

Resistance: 1,256, 1,281

Support: 1, 241, 1,220, 1,209

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.  Thursday was an entry signal for many stocks.

Enter bearish trades on a break of short term support or a bounce down from the 30 DMA.

The short term 3 day trend is neutral.
The six-month trend is up.
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 +0.79 –spinning top above recent resistance

AMZN -1.05 – spinning top in bull flag

NFLX +3.66 – bullish engulfing pattern and MACD bullish divergence

QCOM +0.25 – white spinning top above recent resistance

GOOG -3.46 – black candle in pullback forming bull flag

BIDU -1.42 – spinning top at support and MACD bullish divergence

NDX 100 stocks stronger than the NDX include SHLD, NFLX, STX, QGEN, JOYG, URBN, DTV, CSCO, COST, CTRP, QCOM, SRCL, VMED, PAYX and SIAL.

Stocks weaker than the NDX: LINTA, WFMI, FSLR, BIDU, SNDK, DLTR, FFIV, NIHD, BRCM, CA, WCRX, MRVL, AKAM, AMGN and PCLN.

Stocks to Watch on Wednesday
Holding Above 30 DMA
SINA, CAM, WLT, ATW, SLB, NDAQ, USD, DECK, GR, RVBD, BYI, CAT, X, CREE, GES, CLF, INFA, VMW, SNDK, CRUS, FCX, FDX, AKS, A, AMD, DHR, DOW, FLS, GME, ICE, PNC, TBT, UCO, DE, FAS, JEC, STI, SWK, WHR, ZION, ACN, BAC, NYX, ESI, IPI, HSY, NTRI, ATI, CF, PCP, HANS, AIV, GS, URE, AGU, MOS, POT, UNP, BA, SPG
Moving Above 30 DMA = 0

Moving Below 30 DMA = 3

HAS, HLF, TSL

Staying Below 30 DMA
CRM, MHS, NETL, CAKE, TIE, MA, SKX, V, CSTR, UNG, VECO, ARUN, CMG, RMBS, SOHU, GMCR, MCD, SWN, AMX, LVS, UAL, FAZ, TLT, NTES, LDK, CHL, LXK, DLR

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