SPX Close Higher Continuing Bull Flag Support Bounce...

Dave and Tom talked trading for two hours live with 300 plus traders at the Las Vegas Money Show at Caesar's Palace on Tuesday evening. Thank you for coming...

The SPX formed a white candle that confirmed the bullish harami and closed +10.87 at 1,357.16. The SPX, INDU, COMPQ and RUT support gained strength as the daily percentage gain increased again.

SPX white candle +0.81%
INDU white candle +0.60%
COMPQ white candle +1.01%
RUT large white candle +1.56%

Breadth strengthened on Tuesday as advancers led decliners 4.32 to 1 on the NYSE and 2.93 to 1 on the NASDAQ …

Exchange      NYSE      NASDAQ
Advancers     2,468        1,931
Decliners          571          658

Index     Chg.      Close      Direction     Confirmation
VIX        -1.25        15.91       Down            Yes – SPX
SOX      +2.23      444.59       Up                 Yes – COMPQ

Leading stocks > +2% on Tuesday included CIEN, ESI, VLO, URE, JDSU, FAS, RVBD, SWK, ATI, NYX, DOW, UNG, WDC, ACN, LDK, ANF, FWLT, CRM

Losing stocks < -2.0% included MCP, SINA, NTES, FAZ, CLF, WLT, IPI

Our bull flag entry for SPY was filled on Friday.

Positives – SPX, VIX, INDU, COMPQ, RUT, breadth and sectors strengthened, XLF, TNX AMZN, GOOG, Euro

Negatives – TLT

Interest rates TNX +0.53 moved up and bond ETF TLT moved down 68 cents. Financial stocks XLF rose 15 cents. The Euro rose 48 pips to 1.4410 at 5 pm on Tuesday.

All nine sectors moved higher on Tuesday. Utilities XLU +1.44% and Consumer Discretionary XLY +1.29% were the strongest sectors.

Friday/Monday Bull Flag Entry Signals
On Tuesday
Continued to Rise – CROX (Wed.), HUM, NVDA, CTRP, XRAY, EXPE, ILMN, MICC, CHKP, TUP, VECO, ACN, CY, GLW, NYX, V, ISRG, EXPD, FFIV, ILMN, AMZN, ESRX


Pulled Back – SINA, ARUN, GMCR, MCP, VMW, BIDU

Tuesday Bull Flag Entry Signals - A, AMD, ATI, CAT, CIEN, CSTR, DHR, DLR, DOW, GES, TIF, UNP, URE, WDC, WYNN, CTXS, BBBY, DTV

Bull Flag Setups – F, SMH, SNDK, SWKS, SWN, UNG, ALTR, LLTC, QCOM, PCLN, CELG

SPX
Resistance: 1,352, 1,367, 1,384
Support: 1,344, 1,330, 1321

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 +1.85 – hammer
AMZN +3.14 – white candle
BIDU -0.38 – spinning top
GOOG +4.98 – white spinning top
NFLX +1.22 – doji
PCLN -0.70 – spinning top
QCOM +0.25 – doji

NDX 100 stocks stronger than the NDX include URBN, WYNN, BMC, WCRX, ERTS, ILMN, CTXS, APOL, MICC, EBAY, SHLD, ADBE, CMCSA, FLIR and SIAL.

Stocks weaker than the NDX include FSLR, VRTX, VOD, BIIB, MSFT, GILD, QGEN, BIDU, EXPE, LIFE, LRCX and PCLN.

Stocks to Watch on Wednesday
Holding Above 30 DMA
HUM, HLF, CSTR, DHR, A, ANF, DLR, TIF, V, NYX, CIEN, VMW, URE, ATI, TLT, DOW, MHS, AMD, GES, NVDA, SMH, JDSU, UNP, SWN, VECO, HAS, SWKS, UAL, GMCR, CAT, CF, IL, ACN, GLW, NDAQ, RVBD
Moving Above 30 DMA = 9
CRM, ESI, FWLT, SNDK, STI, SWK, VLO, WDC, ZION
Moving Below 30 DMA = 5
ARUN, FAZ, MCP, SINA, WLT
Staying Below 30 DMA
F, FAS, LVS, SOHU, UNG, UCO, DE, NETL, PCX, AGU, AKS, ATW, FCX, IPI, LDK, SLB, TSL, CLF, DECK, CHL, NTES, POT, CMG, JEC, JNPR, SLW, IAG, GS, CDE, TBT, MOS, X, ICE, CAM, BAC, CRUS

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