SPX Falls to 1,278 Support...Five Week Down Trend Continues...

The SPX broke its 1,288 support and fell to the 1,278 support level closing down -5.38 at 1,279.56. Many stocks continued their five week down trend and moved to new five week lows. Buying pressure is short lived in most stocks. Even NFLX -.1.43, one of the strongest stocks over the past five weeks moved slightly lower in its bull flag pull back.

RVBD did give a support break entry signal on Wednesday.

AAPL has a horizontal support setup similar to the setup we did on May 23 that got filled on May 25 and closed on June 1.   


SPX spinning top, below 30 DMA -0.42%
INDU spinning top, below 30 DMA -0.18%
COMPQ black candle, below 30 DMA -0.97%
RUT black candle, below 30 DMA -1.19%

Breadth weakened as decliners led advancers 2.80 to 1 on the NYSE and 2.79 to 1 on the NASDAQ …

Exchange      NYSE      NASDAQ
Advancers        794            690
Decliners       2,228         1,930

Index     Chg.     Close     Direction     Confirmation
VIX       +0.72       18.79        Up               Yes – SPX
SOX      -8.70      408.94       Down           Yes – COMPQ

Leading stocks > +2% on Wednesday included UCO, FAZ

Losing stocks < -2.0% included CIEN, SINA, TSL, MCP, LDK, CRUS, JDSU, ANF, SOHU, TPX, ENTR, CREE, ARUN, CY, GES, SLW, DECK, V, ANR, KKD, RVBD, HLF, CDE, ATI, FAS, NVDA, SWKS, INFA, PCX, IL, COH, SMH, VECO

Positives – XLE, AAPL, AMZN, GOOG, TLT

Negatives – SPX, VIX, INDU, RUT, COMPQ, NDX, breadth and sectors weakened, BIDU

Four of nine sectors moved higher on Wednesday. Energy XLE +0.30% and Utilities XLU +0.24% were the strongest sectors.

Bond ETF TLT moved up 75 cents. Financials XLF -0.91% moved down 13 cents.

Bull Flag Entry on Wednesday: ALXN


Bull Flag Setups for Thursday: TIF, COH, CY, VECO, GMCR, KKD, CMG, CF, IFNA, CRM, MA GES, POT, AGU, CHL, HLF, HUM, CROX, WTW, NFLX, MRVL

SPX
Resistance: 1,288, 1,300, 1,310
Support: 1,278, 1,267, 1,257

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.

AAPL +0.20 – potential morning star, below 30 DMA
AMZN +0.50 – spinning top inside day confirms bullish harami, below 30 DMA
BIDU -4.15 – black candle, below 30 DMA
GOOG +0.14 – spinning top, below 30 DMA
NFLX -1.43 – spinning top, above 30 DMA
PCLN -5.44 – spinning top, below 30 DMA
QCOM -0.21 –hammer, below 30 DMA

NDX 100 stocks stronger than the NDX include EBAY, EXPE, ILMN, COST, SYMC, CERN, GRMN, CMCSA, GILD, AMZN, BBBY, AMGN, HSIC and AAPL.

Stocks weaker than the NDX include MU, WFM, ALTR, AKAM, BIDU, ADSK, FSLR, RIMM, NVDA, URBN, ERTS, SPLS, XLNX and ADBE.

Stocks to Watch on Thursday
Holding Above 30 DMA
HLF, DLR, TIF, TLT, FFIV, GMCR, KKD, FAZ, CMG, CF, CRM, IAG, UNG, ESI, SWN
Moving Above 30 DMA = 0

Moving Below 30 DMA = 5
CROX, CY, INFA, V, VECO
Staying Below 30 DMA
COH, AGU, ATW, CHL, CREE, HUM, POT, RVBD, SLB, VMW, ACN, ANF, GES, NGLS, NVDA, SINA, UNP, ANR, TPX, WTW, A, AKS, CLF, CRUS, CSTR, DECK, DHR, ENTR, FCX, FWLT, ICE, SMH, SNDK, STI, URE, ZION, UAL, MHS, HAS, JDSU, JNPR, SWK, ARUN, GLW, ATI, CIEN, DOW, F, CAT, IL, NDAQ, SWKS, WDC, MCP, WLT, FAS, LVS, SOHU, UCO, DE, NETL, PCX, LDK, TSL, NTES, SLW, GS, CDE, TBT, MOS, X, CAM, BAC

Intermediate Term Market Trend: Neutral
Short Term Market Trend: Down