SPX Reverses a Lower Open and Moves to a New High Close...

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After a slightly lower open buyers bought stocks pushing the SPX up +6.36 or +0.50% at 1,276.56.  The SPX is just 5 points below its 1,281 December breakout price target.

(click image to enlarge)

SPX large white candle new high close

INDU spinning top new high close

COMPQ large white candle reversal of Tuesday’s piercing line

RUT large white candle deep into Tuesday’s bearish engulfing

Breadth strengthened on Wednesday as advancers led decliners 1.52 to 1 on the NYSE and 2.41 to 1 on the NASDAQ…

Exchange       NYSE          NASDAQ

Advancers      1,822              1,888

Decliners        1,192                 783

(click image to enlarge)

Index Direction     Confirmation

VIX      Down            Yes – SPX

SOX    Up                  Yes – COMPQ

Leading stocks > 1% on Wednesday included PCX, CRM, TBT, CRUS, ESI, POT, FAS, MA, F, MOS, SNDK, NETL, NETL, DECK, DISH, ARUN, CSTR, UCO, TIE, V, PNC, BAC, PCP, SKX, IPI, GMCR, AMD, CF, DE, AKS, SOHU, NTES, VMW, ATW, SLB, WLT, GR, AGU

Losing stocks < -1% included FAZ, GME, UNG, TLT, MCP, JEC, LDK, NDAQ

Six of the big seven NDX stocks, AAPL, AMZN, BIDU, GOOG, PCLN and QCOM were on the run either closing at new close or making a horizontal breakout of short term resistance.  Only NFLX moved lower.

   

Interest rates jumped near recent highs on Wednesday and bonds opened lower and fell near recent lows.  The Euro fell 154 pips to 1.3152 at 5 pm ET. 

The SOX rose +1.51, closing at 417.09 on Wednesday and the VIX moved down -0.36 and closed at 17.02.

Eight of nine sectors moved higher on Wednesday with Financials XLF +1.20% and Consumer Discretionary XLY +0.82% leading all sectors. 

Moves on Wednesday

Continuation – XLF, NYX, C, CLF, WYNN, SWK, VMW, AMD, X, DOW, GS, WFC, BAC, GR, WLT, BYI, CF, FAS, NUE, STLD, A, DHR

Resistance Breakout – AMZN, CRUS, F, GOOG,

Bull Flag Bounce – MOS, ATI, STI, USD, UNP, CAT, DE

MACD Divergence Bounce –

Support Bounce – FFIV, TSL, JASO,

Bear Flag Break – SPG, TLT

Break of Support – ATW, WFMI

Setup Charts to Watch

Bull Flag Setups – RMBS, JEC ZION, NDAQ, AGU, URE, GME, FLS, FCX, AIV, SLB, AZO, IPI, GES, ICE, DECK, HSY

Horizontal Breakout – V, NETL, SNDK, ILMN, LVS, SINA, NTAP, AKS, UNG, X, PNC, WHR

MACD Divergence – CMG, CREE, CAKE, NFLX, CSTR, AKAM, BIDU, LDK

Bear Flag Setups –ACN, SKX

Horizontal Support Breakout – TBT

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

SPX

Resistance: 1,281

Support: 1,256, 1, 241, 1,220

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.  Wednesday was an entry signal for bounce and horizontal breakout stocks.

Enter bearish trades on a break of short term support or a bounce down from the 30 DMA.  No bearish follow through as buyers move stocks higher on Wednesday.

The short term 3 day trend is up.
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 +2.71 – white candle breakout, new high close

AMZN +2.41 – white candle breakout, new high close

NFLX -1.64 – spinning top inside day and MACD bullish divergence

QCOM +1.06 – white candle new high close

GOOG +6.95 – large white candle breakout

BIDU +3.66 – large white candle breakout and MACD bullish divergence

NDX 100 stocks stronger than the NDX include NVDA, ADSK, PCLN, RIMM, EXPE, FFIV, VRTX, AKAM, BIDU, SPLS, CHKP, SNDK, ILMN, CTSH and SYMC.

Stocks weaker than the NDX: DLTR, LRCX, ATVI, COST, KLAC, AMAT, ORCL, INTU, JOYG, INTC, CEPH, NWSA, SIAL, NFLX and TEVA.

Stocks to Watch on Thursday
Holding Above 30 DMA
SINA, WLT, SLB, NDAQ, USD, GR, RVBD, BYI, CAT, X, FWLT, PCX, CLF, INFA, VMW, SNDK, CRUS, HOLX, FCX, FDX, AKS, A, AMD, DHR, DOW, FLS, GME, ICE, PNC, UCO, DE, FAS, JEC, STI, SWK, WHR, ZION, ACN, BAC, NYX, ESI, IPI, MCP, ATI, CF, AIV, GS, URE, AGU, MOS, POT, UNP, BA, RMBS, SWN, UNG, ARUN, CHL, CREE, NETL, LVS, VECO
Moving Above 30 DMA = 5

CRM, DECK, PCP, TBT, TSL

Moving Below 30 DMA = 0

Staying Below 30 DMA
CAM, DLR, GMCR, HANS, LDK, SPG, ATW, GES, HSY, TLT, HAS, HLF, MHS, CAKE, TIE, MA, SKX, V, CSTR, CMG, SOHU, MCD, UAL, FAZ, NTES, LXK

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