NDX Bounce Leads Market Higher...IBM & INDU a New High Close...

The SPX formed a large white candle to close up +7.49 at 1,290.84 on Monday.  IBM continued uptrend helped the INDU to a new high close at 11,980.

(click image to enlarge)

SPX large white candle bounce in bull flag

INDU large white candle, new high close

COMPQ bullish engulfing in bull flag

RUT bullish harami below 30 DMA

Breadth strengthened on Monday as advancers led decliners 2.37 to 1 on the NYSE and 1.83 to 1 on the NASDAQ…

Exchange       NYSE          NASDAQ

Advancers      2,123             1,730

Decliners           895                 943

(click image to enlarge) 

Index              Chg.    Close    Direction      Confirmation

VIX                 -0.82       17.65    Down             Yes – SPX

SOX            +10.77     442.42    Up                  Yes – COMPQ

Leading stocks > 1% on Monday included LDK, MCP, SINA, TSL, NTES, MOS, LXK, PCX, CRUS, WLT, AKS, MA, V, DHR, SWN, NETL, X, SMH, GMCR, CAM, CAT, AMD, GES, NYX, CLF, A, UAL, BA, DOW, SNDK, VECO, FWLT, AIV, JEC, DLR, FDX, ESI, LVS, NDAQ, PCP, ATI 

Losing stocks < -1% included RVBD, CRM, VMW, UCO, ARUN, UNG, BAC, ZION, HANS, STI, CMF, HSY, HLF, ATW, WHR

Positives – INDU, SPX, NDX, SOX, IBM, AAPL, BIDU, NFLX, Euro, strengthening breadth and sector strength, bull flag price pattern

Negatives – RUT, AMZN, GOOG, PCLN

Interest rates closed slightly lower on Monday and bond ETF TLT closed up 4 cents.  The Euro moved up 20 pips to 1.3638 at 5 pm ET. 

Seven of nine sectors rose on Monday with Technology XLK +1.40% and Materials XLB +1.07% leading all sectors.

IBM continued uptrend helped the INDU to a new high close at 11,980.

Earnings

Mon –

AXP miss

MCD beats by 1 cent

VMW miss

ZION beats by 12 cents

Tue – ALTR, DD, AKS, JNJ, TRV, VZ, X

Wed – AMZN, MSFT, SNDK, KLAC, MMM, PG, T, F, RVBD, CRUS, GMCR, BMC, PCP, UAL

Thu – BA, CAT, CTXS, LRCX, NFLX, QCOM, SWK, UTX

Moves on Monday

Continuation - IBM, HPQ, MS

Resistance Breakout – NVDA, LDK, MYL, NDAQ

Bull Flag Bounce – DISH, DTV, SMH, SINA, MCP, GM, A, DE, NYX, INTC, XLNX, LLTC, FAS,

MACD Divergence Bounce – GME, HNZ

Setup Charts to Watch on Tuesday

Bull Flag Setups – HANS, F, UNP, HUM, UNG, PNC, BK, SID, FWLT, PCX, TIE, WLT, CLF, HSY, MHS, JOYG, AMD

Breakout –ACN, ESI

MACD Divergence – GES, HAS, NKE

SPX

Resistance: 1,300

Support: 1,281, 1,256, 1,241

The short term 3 day trend is neutral.
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 +10.73 – bullish engulfing close above 30 DMA

AMZN -0.57 – hammer below 30 DMA

NFLX +1.87 – piercing line candle close above 30 DMA

QCOM +0.25 – white spinning top near 30 DMA

GOOG -0.75 – hammer at 30 DMA

BIDU +1.26 – long tailed hammer in bull flag

NDX 100 stocks stronger than the NDX include NVDA, FSLR, LRCX, FLEX, AAPL, MXIM, ALTR, NIHD, KLAC, NWSA, BRCM, GRMN, AMAT, DTV and ADBE.

Stocks weaker than the NDX: FFIV, URBN, APOL, ADSK, CTXS, CEPH, CTRP, MRVL, WYNN, ORLY, PCLN, NTAP, TEVA, ORCL and GENZ.

Stocks to Watch on Tuesday
Holding Above 30 DMA
SINA, NDAQ, SMH, FWLT, PCX, CLF, CRUS, HOLX, A, DE, FAS, JEC,  ACN, BAC, NYX, ATI, URE, AGU, POT, UNP, BA, SWN, UNG, TBT, TSL, DLR, GMCR, HANS, HUM, HSY, LDK, MHS, NTES, CAM,  SLB, TIE, ATW, SKX, MA, SPG, CHL, ESI, IPI, STI

Moving Above 30 DMA = 11

CAT, DHR, DOW, FDX, LXK, MCP, MOS, NETL, PCP, V, VECO

Moving Below 30 DMA = 4

CF, SWK, WHR, ZION         

Staying Below 30 DMA
PNC, SOHU, SWKS, WLT, ARUN, CMG, CRM, RVBD, SNDK, UCO, VMW, AIV, FCX, GS, LVS, UAL, DECK, AMD, HLF, CREE, X, AKS, GME, ICE, GES, TLT, HAS, CSTR, MCD, FAZ

Added: SWKS

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