SPX Bounces at 1,295 Forms Hammer-like Candle...

The SPX formed a hammer that closed below it 30 DMA, -14.54 at 1,305.14.

SPX hammer, below 30 DMA -1.10%

INDU black candle, above 30 DMA, -1.14%

COMPQ hammer, just below 30 DMA, -1.06%

RUT black candle, just below 30 DMA, -1.61%

Breadth weakened on Monday as decliners led advancers 4.23 to 1 on the NYSE and 3.86 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers         581                 543

Decliners        2,462              2,101

Index              Chg.    Close    Direction      Confirmation

VIX                 +1.64      16.96     Up                 Yes – SPX

SOX                -7.79    423.44     Down            Yes – COMPQ

Leading stocks > +2% on Monday included SINA, FAZ, LVS, CF

Losing stocks < -2.0% included CRUS, TSL, PCX, FAS, UCO, NVDA, FWLT, LDK, BAC, CAT, ATW, RVBD, ATI, ARUN, ANF, JDSU, WLT, JEC, CIEN,SLW, DE, NDAQ, GMCR, IPI, SLB, DECK, CDE, URE, CLF, DOW

Positives – bullish candle on SPX, COMPQ, NDX, RUT, AAPL, AMZN, BIDU, GOOG, NFLX, PCLN, QCOM,

Negatives – breadth and sectors weakened, Euro, VIX, TNX

Interest rates TNX -0.39 moved down and bond ETF TLT moved up 24 cents.  Financial stocks XLF fell 22 cents. The Euro moved down 194 pips to 1.4233 at 5 pm on Monday.

All nine sectors moved lower on Monday.  Consumer Staples XLP -0.55% and Utilities XLU -0.87% were the strongest sectors. 

Key Earnings this week:

Monday –

C reports 10 cents vs. 9 cents estimate

STLD reports 46 cents vs. 41 cents estimate

ZION reports 8 cents vs. -18 cents estimate

TXN reports 52 cents vs. 63 cents estimate

Tuesday – INTC, ISRG, LLTC, MICC, ST, WYNN, YHOO, CREE, CSX, GS, HOG, JNJ, JNPR, RF, STT, SYK, VMW

Wednesday – AAPL, GILD, FFIV, VMED, LRCX, QCOM, AMGN, AXP, AMR, DAL, FCX, MAR, STI, CAKE, UNP, UTX, WFC, WDC

Thursday – MXIM, SNDK, VRTX, BIIB, AMD, ALD, ALXN, COF, DD, GR, LLL, NEM, NUE, NOK, PCX, PNC, RMBS, SLB, UAL, VZ

Look for selectivity and rotation to occur with positive earnings attracting big money buying and negative earnings attracting big money selling.

SPX

Resistance: 1,311, 1,321, 1,330

Support: 1,300, 1,288

The short term 3 day trend is down.
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.

All seven high profile NASDAQ stocks formed bullish candles:

AAPL +4.39 – piercing line

AMZN -1.67 – doji, bull flag

BIDU -0.92 – hammer

GOOG -3.86 – hammer

NFLX -2.16 – hammer

PCLN -3.29 – doji

QCOM +0.15 – bullish engulfing

NDX 100 stocks stronger than the NDX include AKAM, RIMM, WYNN, AAPL, STX, ORLY, SPLS, CELG, INFY, CTRP, QCOM and CEPH.

Stocks weaker than the NDX include MICC, MRVL, LRCX, JOYG, NVDA, GILD, BMC, ALXN, LINTA, XRAY, MU, KLAC, WCRX, VOD and XLNX.

Stocks to Watch on Tuesday

Holding Above 30 DMA
HUM, GMCR, HLF, SINA, UCO, CSTR, WDC, DHR, NTES, MCP, A, WLT, ACN, SOHU, CMG, ANF, DECK, DLR, CRM, LVS, TIF, V, NDAQ, NYX, SNDK, CIEN, IL, VMW, UNP, FAZ, SWK, URE, ATI, TLT

Moving Above 30 DMA = 1

CF

Moving Below 30 DMA = 12

ARUN, CAT, CHL, CLF, DE, DOW, JEC, NVDA, PCX, SMH, TSL, UNG

Staying Below 30 DMA

F, IAG, ZION, GS, CDE, FAS, FCX, STI, TBT ESI, FWLT, HAS, NETL, SLW, AGU, AKS, POT, SLB, SWN, VECO, VLO, ATW, MOS, IPI, X, AMD, ICE, CAM, RVBD, JNPR, BAC, GLW, JDSU, CRUS, SWKS, GES, MHS, LDK, UAL

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