SPY Bounces Off Support Price Target as AAPL, BIDU, SHLD Soar...

The SPY bounced on Monday as the Euro rose, TNX interest rates rose 0.33, financial stocks rose and bonds closed slightly lower.  The SPX closed at 1,315.99 above its 1,300 support area.

All nine sectors moved higher on Monday. XLB, XLK, and XLE were the strongest sectors.

Breadth strengthened as advancers led decliners 5.93 to 1 on the NYSE and 3.36 to 1 on the NASDAQ.

Exchange        NYSE       NASDAQ

Advancers       2,577          1,957

Decliners            434             582

SPY moved up +2.23 on 177.8 million shares…

AAPL soared 30.90 to 561.28 on 20.5 million shares...

FB -4.20, 34.03 on 168.2 million shares.....

GRPN +81 cents, +6.99% in bull flag following reversal pattern…

C Pattern Entry: SHLD, ALXN, GOOG, ZAGG

C Pattern Setup: CRM, SWKS, DHR, V, A

Daily/Weekly Bull Flags: GRPN, CRUS, SWI, CRM, VECO, MNST, BBBY,, BIIB, BMC, CERN, CTXS, NWSA, ORLY, ROST, VRST, VRTX, WCRX, WFM

MACD Histogram Bullish Divergence: RVBD, CIEN, MCP,CROX, SOHU, VMW, TPX, JDSU, MOS, INFA, F, BIDU, NFLX, QCOM, NNVDA, SBUX, SHLD, VMED, PNRA, MSF, MRVL, MCHP, INTU, INFY, GOLD, FISV, EXPD, CTRP, CHKP, CELG, ADBE, AKAM, ALTR, ALXN,

Technical Commentary:

The SPY bounced and trended higher all day closing at 131.97 near its high of the day on strong but decreasing volume from Friday, further supporting the view that Friday was a potential capitulation level.

Monday Highlights: 

SPY bounces  off price target of 129.86

Volume drop resembles post capitulation bottom

The Euro rose 29 pips, closed 1.2807

TNX +0.33

VIX fell -3.09, below 25 at 22.01

XLF closed up 13 cents

This Week:

Modes bounce in TNX interest rates near the lows of the past nine months,.  If rates continue to rise on a weakening dollar and rising Euro, look for XLF and the SPY to continue to bounce.  If the Euro reverses and breaks support look for XLF and the SPY to reverse Monday’s bounce.

ES bullish engulfing close 1,315, horizontal support 1,290, 1,262

Euro 1.2807, horizontal support 1.2622

TNX near 9 month low of 17.35

99 of 100 NDX stocks closed higher on Monday…only ROST moved lower…the number of NDX stocks above their 30 DMA increased from 9 to 18 on Monday.

Leading NDX 100 stocks included SHLD, AAPL, BIDU, ALXN, ADSK, SIRI, RIMM, SBUX, FFIV, GOLD

Lagging NDX stocks included ROST, TEVA, INFY, AMGN

Leading stocks > +2% on Monday included MCP, RVBD, ANR, SWKS, GRPN, CIEN, ZAGG, CROX, CLF, CDE, SOHU, ATI, UAL, CRUS, TSLA, TPX, SWI, SLB, URE, UCO, LVS, DECK, WDC, JDSU, VMW, FAS, RCL, MOS, VECO, GLW, A, V, SINA, COH, X, DE, STI, HLF, INFA, JNPR, SWK, TSL, CRM, FCX, DHR, PCX, CREE, SMH

Losing stocks < -2.0% included FB, FAZ, BAC, LNKD

Stocks to Watch on Tuesday

Holding Above 30 DMA = 6

TLT, CRUS, SWI, VECO, FAZ, NTES

Moving Above 30 DMA = 2

GRPN, ZAGG

Moving Below 30 DMA = 0

Staying Below 30 DMA

LNKD, UAL, CHL, LDK, URE, CREE, TSL, STI, WDC, DLR, NKE, ANF, ATI, CRM, CSTR, DE, GLW, IBM, SLB, VMW, CMG, DHR, ESI, FAS, FCX, SMH, SWKS, TIF, UCO, V, AKS, ANR, JNPR, X, HLF, SOHU, DECK, HUM, CROX, LVS, CIEN, PCX, RCL, RVBD, CLF, MCP, SWK, TPX, ZION, INFA, BAC, A, TBT, F, JDSU, C, GS, TSLA, COH, MOS, ICE, SINA, GES, CDE

Eight Week Intermediate Term Market Trend: Down

Short Term Market Trend: Neutral