SPY Forms Hammer in Area of Support...

The SPY opened lower on Tuesday and fell to 134.92 by 11 am EDT on approximately 69 million shares, then buyers took control and the SPY rose 1.63 to close at 136.55 on approximately 120 million shares.  The SPY formed a hammer which is considered a bullish candle pattern in the area of its 136 support.  The price action and hammer suggest an intra-day reversal.   

Two of nine sectors moved higher on Tuesday.  Defensive sectors XLU, XLV and XLP were the strongest sectors.

Breadth weakened as decliners led advancers 1.51 to 1 on the NYSE and 1.08 to 1 on the NASDAQ.

Exchange        NYSE       NASDAQ

Advancers      1,188          1,205

Decliners        1,800          1,313

SPY moved down 55 cents on 213.2 million shares forming a hammer at horizontal support…

 AAPL was down 1.30 to 568.18 on 17.7 million shares forming a hammer at support…

Technical Commentary:

Many stocks along with the SPY and QQQ formed a Hammer bullish candle on Tuesday.  There were a few Bullish Engulfing Patterns and some nice Bounce Continuation moves also.

Hammer – AMZN, AAPL, SWI, AKAM, ALXN, WDC, VOD, BA, CHKP, MAT, CERN, EBAY, STX, DDD, NFLX, FFIV, LRCX, MRVL, MXIM, SWK, NUAN, X, ADSK, AMAT, BRCM, FAST, FISV, GILD, INTC, INTU, ISRG, LIFE, SHLD, GWR

Hammer-like – BAC, ZION, DLTR, XLNX, ZAGG

Bounce Continuation – VECO, GOOG, BIIB, UAL, ADM, XRAY

Bullish Engulfing Patterns – AMGN, ADP, ADBE, KLAC, PAYX, SPLS, FLEX

Bullish Harami – WFC, EXPD, GS, SYMC, XLF, FAS, NWSA, ORLY

Moved Lower – FSLR, PNRA, MNST, PCLN

Flag Setup – FIRE, BGC, CATM, KORS, LULU, GRMN, URE, CHL, DLR, CRUS, NKE, LNKD, TSL, SWI, STI, ROST, ORLY, MNST, BIIB, VRSN, DLTR, STX, WCRX, AMZN, CTXS, EXPE

36 of 100 NDX stocks closed higher on Tuesday…

Leading NDX 100 stocks included VRTX, GMCR, CTSH, HSIC, SIAL RIMM, AMGN, ESRX, QCOM, SPLS

Lagging NDX stocks included FOSL, FSLR, WYNN, EA, GOLD, MU, MNST, PNRA, PCLN, GRMN, SBUX

Leading stocks > +2% on Tuesday included PCX, VECO

Losing stocks < -2.0% included TSL, TSLA, GES, ANF, CIEN, RVBD, NTES, CRM, ANR, TPX, DECK, HLF, CLF, CDE, ZAGG, NKE, MCP, VMW, SWKS, BAC, FCX, CROX

Stocks to Watch on Wednesday

Holding Above 30 DMA = 14

TLT, URE, CHL, DLR, CREE, CRUS, LNKD, SWI, TSL, VECO, FAZ, UAL

Moving Above 30 DMA = 0

Moving Below 30 DMA = 3

NKE, NTES, STI

Staying Below 30 DMA

ANF, AGI, ZAGG, CRM, FCX, IBM, SLB, CMG, DHR, ESI, FAS, FCX, SMH, SWKS, TIF, UCO, V, AKS, ANR, JNPR, X, HLF, SOHO, DECK, HUM, WDC, CROX, LVS, FAZ, CIEN, PCX, RCL, RVBD, CLF, MCP, SWK, TPX, X, ZION, INFA, BAC, A, TBT, F, JDSU, C, GS, TSLA, COH, GRPN, MOS, ICE, SINA, GES, CDE, LDK

Six Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down