After the Close AAPL and IBM Beat and Rise...CREE Misses and Falls...

The SPX opened slightly lower on weakness in the financial sector on missed earnings from C and closed up +1.78 at 1,295.02 on Tuesday.  The SPX reached its short term breakout price target of 1,294.  The SPX traded in a narrow range of 5.90 points awaiting earnings from AAPL and IBM.

SPX white spinning top, new high close

INDU large white candle, new high close

COMPQ large white candle, new high close

RUT potential hanging man, inside day

Breadth weakened on Monday as advancers led decliners 1.18 to 1 on the NYSE and decliners led advancers 1.05 to 1 on the NASDAQ…

Exchange    NYSE  NASDAQ

Advancers   1,635    1,305

Decliners     1,383    1,374

Index    Chg.   Close   Direction   Confirmation
VIX      +0.41   15.87      Up              No – SPX
SOX     -1.66  449.93     Down          No – COMPQ

Leading stocks > 1% on Tuesday included LDK, TSL, ATI, TIE, FWLT, BA, CAT, MCP, VECO, MOS, CSTR, A, CLF, PCX, CF, PCP, IPI, HOLX, URE, AIV, X, AGU, SOHU, DE, ATW, STI, ARUN, POT, ESI, NTES

Losing stocks < -1% included HLF, UAL, DECK, LVS, GES, CREE, BAC, UNG, PNC, CRM, SINA, CRUS, AMD, WHR, UCO, SWN

Positives – NDX, INDU, TNX, GOOG, AMZN, NFLX, PCLN, weaker bonds, sector breadth

Negatives – SOX, VIX, EURO, Weaker advancers/decliners

Interest rates moved higher on Tuesday and bonds moved lower. The Euro declined 3 pips to 1.3385 at 5 pm ET.

Eight of nine sectors moved higher on Tuesday with Industrials XLI +0.72% and Energy XLE +0.62% leading all sectors.

Earnings
Tue:
AAPL – Q1 EPS 6.43 vs. 5.40 consensus, revenues beat, raise Q2 guidance
CREE – Q2 EPS miss .55 vs. .58, revenues miss, lower Q3 guidance
IBM – Q4 EPS 4.18 vs. 4.08 consensus, revenues beat, raise 2011 guidance
LLTC – Q2 .62 vs. .58 consensus, revenues beat, lower Q3 guidance
WDC – Q2 .96 vs. .58 consensus, revenues beat

Wed – EBAY, FFIV, GS, STT, STX, XLNX
Thu – GOOG, FCX, ISRG, MXIM, SBUX, UNP
Fri – BAC, GE

SPX
Resistance: 1,281, 1,300
Support: 1,256, 1, 241, 1,220

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

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

AAPL -7.83 – white candle after gap down open on Jobs medical leave news
AMZN +2.50 – large white candle, new high close
NFLX +2.20 – white spinning top, above breakout after MACD bullish divergence
QCOM +0.99 – white candle horizontal breakout, new high close
GOOG +15.45 – large white candle, horizontal breakout, new high close
BIDU +0.42 – white candle, horizontal breakout, recent new high close

NDX 100 stocks stronger than the NDX include FSLR, MYL, VOD, SYMC, GRMN, ISRG, ILMN, HSIC, GOOG, APOL, STX, CTRP, JOYG, ESRX and QCOM.

Stocks weaker than the NDX: NVDA, AAPL, EXPE, YHOO, FFIV, VMED, CELG, SPLS, URBN, NTAP, AMAT, ORLY, ATVI, LINTA and MU.

Stocks to Watch on Wednesday
Holding Above 30 DMA
SINA, WLT, NDAQ, SMH, RVBD, CAT, FWLT, PCX, CLF, VMW, SNDK, CRUS, HOLX, FCX, A, DHR, DOW, PNC, DE, FAS, JEC, STI, SWK, ZION, ACN, BAC, NYX, IPI, MCP, ATI, CF, GS, URE, AGU, MOS, POT, UNP, BA, SWN, UNG, ARUN, NETL, LVS, VECO, CRM, TBT, TSL, DLR, GMCR, HANS, HUM, HSY, UAL, LDK, MHS, NTES, UCO, CAM, SLB, SOHU, TIE, ATW, ESI, FDX, SKX, CMG, PCP, LXK, MA, SPG
Moving Above 30 DMA = 1
AIV
Moving Below 30 DMA = 3
CHL, DECK, WHR
Staying Below 30 DMA
AMD, HLF, CREE, X, AKS, GME, ICE, GES, TLT, HAS, V, CSTR, MCD, FAZ

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