SPX Falls as Euro Makes 15-month Low...

All nine sectors moved lower on Wednesday.  XLU, XLP and XLK were the strongest sectors. 

Money Flow

Euro      -129 pips    1.2939

TNX       -1.01            19.08

TLT       +2.19          120.64

XLF        -0.21           12.86

SPX      -15.79       1,249.64

VIX        +1.61           23.52

NDX -1.14%

INDU -1.14%

SPX -1.25%

COMPQ -1.34%

RUT -2.14%

The Euro was down 1 pip shortly before the open this morning.  Following a release from the European Central Bank that lending to banks had increased more than 600 billion Euros in one week, the Euro began to fall and broke recent support reaching a 15-month low.  Light volume accompanied the selloff.   

Money Flow followed the Euro lower taking TNX, XLF and SPX lower.  Correspondingly bonds and VIX rose.

Last night we alerted you to “prepare for a pullback and test of the SPX diagonal breakout at 1,255.”  The SPX moved back to that level and closed at 1,249. 

  

(click image to enlarge)

SPY moved down -$1.66 on rising but still light volume of 119 million shares on Wednesday, its fifth lightest volume day of the year.

The VIX moved higher on Wednesday for the second straight day confirming the move down in the SPX.

Breadth weakened as decliners led advancers 3.99 to 1 on the NYSE and 3.96 to 1 on the NASDAQ.

Exchange        NYSE        NASDAQ

Advancers          602             528

Decliners         2,405          2,095

AAPL, AMZN, GOOG, PCLN and QCOM moved lower.  BIDU moved higher 

Bear Flag Entries – FOSL, MAT, DTV, TEVA, MOS, POT

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Setups

Horizontal/Diagonal Breakout – CERN, KLAC, WDC, CSTR, IL, URE, DE, DOW, NKE, UCO, ATI, ZION

Reversal – SWKS, JDSU, CIEN, JNPR

Flag – SWK, SNDK, V, AKS, HUM, F, ATVI, GES, ENTR, FFIV, DTV, VRTX, TEVA

Recent High –

Pause at High – ORLY, GRMN, ROST, VRSN, APOL, MYL, ADP AMGN, SBUX, FAST, ISRG, AKAM, V, UNP

At Support – HANS, MAT,  

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Leading stocks > +2% on Wednesday FAZ

Losing stocks < -2.0% included ZAGG, MCP, CROX, CDE, LDK, TSL, PCX, ENTR, CLF, WLT, FAS, SLW, FCX, MOS, TBT, RCL, GES, KKD, UCO, LVS, BAC, ANR, X, INFA, A, SOHU, DECK, AKS, POT, SINA, C, ARUN, F, ATI, HAL, NVDA, SWK, CF, URE, ANF, CAT, CRUS, RVBD, VMW, SLB, TPX, VECO, CREE, HUM, GLW, STI

NDX 100 stocks stronger than the NDX included WFM, BBBY, BIDU, ALTR, GILD, MYL, GOOG and CTRP.

Stocks weaker than the NDX include FOSL, FLEX, RIMM, WCRX, WYNN, HANS, PCAR, NUAN, LIFE and ADSK.

Twelve NDX stocks BIIB, CSCO, ESRX, EXPD, FLEX, FOSL, HANS, PCLN, SIAL, WCRX, WYNN and XRAY closed below their 30 DMA leaving 53 NDX stocks above their 30 DMA. 

Stocks to Watch on Thursday

Holding Above 30 DMA = 33

V, WDC, LDK, UAL, DLR, CSTR, IL, URE, GES, GRPN, CMG, DE, DOW, ENTR, FAS, HUM, SWK, UNP, F, NKE, UCO, ATI, CIEN, CRUS, SMH, SNDK, SWKS, ZION, COH, ESI, ICE, JDSU, NGLS

Moving Above 30 DMA = 1

TLT

Moving Below 30 DMA = 11

AKS, ANF, C, CF, CROX, DHR, FCX, MOS, POT, STI, X

Staying Below 30 DMA

BAC, TBT, TSL, FFIV, IBM, NTES, FAZ, CAT, CDE, CLF, GS, NDAQ, NVDA, SLB, ANR, RCL, TSLA, A, INFA, CHL, CRM, DECK, HAL, HLF, JNPR, RVBD, VECO, KKD, LVS, SLW, GLW, TIF, VMW, ARUN, CREE, SWN, WLT, PCX, TPX, SOHU, MCP, SINA, ZAGG, LNKD

Thirteen Week Intermediate Term Market Trend: Up

Short Term Market Trend: Down