COMPQ and RUT and Sell Off as INDU Stays Even...

The SPX formed a hammer and closed -4.60 at 1,356.62.  The SPX, INDU and TRAN and all remained above old resistance.  The COMPQ close dright at old resistance, now support.  The RUT and NDX closed below old resistance.  Financial stocks rallied, HLF gapped up following earnings, AAPL rose as BIDU and PCLN sold off.

SPX hammer -0.34%
INDU doji +0.00%
COMPQ black candle -0.78%
RUT black candle -1.29%

Breadth weakened on Tuesday as decliners led advancers 1.86 to 1 on the NYSE and 2.30 to 1 on the NASDAQ …

Exchange      NYSE      NASDAQ
Advancers     1,055            796
Decliners        1,965         1,836

Index      Chg.      Close      Direction    Confirmation
VIX         +0.71       16.70         Up              Yes – SPX
SOX        -5.63     439.43         Up              Yes – COMPQ

Leading stocks > +2% on Tuesday included HLF, MCP, BAC

Losing stocks < -2.0% included SINA, SOHU, NTES, NETL, ARUN, IL, NVDA, WLT, CF, TSL, IAG, IPI, LDK, CDE, RVBD, ACN, UCO, GMCR, LVS, CAM, FWLT, MOS, POT, AGU, ATW, VLO, JDSU, SNDK, PCX, AMD, CMG, SWKS, DE, CSTR, SLW, WDC, SLB, VMW, DOW


Positives INDU, XLF, AAPL

Negatives –RUT, COMPQ, NDX, SPX, VIX, TNX, BIDU, NFLX, PCLN, QCOM, Breadth and sectors weakened

Interest rates TNX -0.31 moved down and bond ETF TLT moved up 53 cents. Financial stocks XLF moved up 7 cents. The Euro moved up 2 pips to 1.4829 at 5 pm on Tuesday.

Four of nine sectors moved higher on Tuesday. Utilities XLU +0.63% and Financials XLF +0.43% were the strongest sectors.

Key Earnings this week:
Tuesday – CEPH, CMCSA, FSLR, MYL, HSIC, VRTX
Wednesday – ERTS, EXPD, GRMN, NWSA, BMC, WFMI
Thursday – DTV, PCLN, MCHP
Friday – WCRX

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

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 +1.92 – doji
AMZN -2.74 – bearish harami
BIDU -7.63 – large black candle
GOOG -4.67 – spinning top
NFLX -5.95 – black candle
PCLN -15.54 – bearish engulfing confirms shooting star
QCOM -0.75 – black candle

NDX 100 stocks stronger than the NDX include GILD, DELL, NIHD, INTC, DLTR, URBN, ILMN, QGEN, NTAP, FISV, CHKP, AMAT, MSFT, CELG and AAPL.

Stocks weaker than the NDX include SHLD, CTSH, BIDU, NVDA, CTRP, JOYG, MU, PCLN, SNDK, NFLX, MYL, LRCX, AKAM, FSLR and STX.

Stocks to Watch on Wednesday
Holding Above 30 DMA
HUM, HLF, SINA, UCO, CSTR, WDC, DHR, MCP, A, ACN, SOHU, ANF, DLR, CRM, LVS, TIF, V, NYX, SNDK, CIEN, IL, VMW, URE, ATI, TLT, DOW, MHS, UNG, ZION, AMD, CAT, F, GES, NVDA, SMH, ESI, JDSU, UNP, FAS, GLW, SWN, VECO, HAS, SWKS, UAL
Moving Above 30 DMA = 0

Moving Below 30 DMA = 8
ARUN, CF, DE, GMCR, NDAQ, NETL, PCX, WLT
Staying Below 30 DMA
AGU, AKS, ATW, FCX, IPI, LDK, RVBD, SLB, TSL, CLF, DECK, CHL, NTES, POT, SWK, CMG, FAZ, FWLT, JEC, VLO, JNPR, SLW, IAG, GS, CDE, STI, TBT, HAS, MOS, X, ICE, CAM, BAC, CRUS

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