SPY Follows Euro Lower as Breadth Strengthens...

The SPY pre-market rally faded after a weaker than expected April retail sales report. The SPY rose to a high of 134.81 and then pulled back to close at 133.34 above its next support level in the 132.80 area. The SPY formed an inverted hammer like candle pattern.

All nine sectors moved lower on Tuesday. XLP, XLY, and XLK were the strongest sectors.

Breadth strengthened as decliners led advancers 1.87 to 1 on the NYSE and 1.16 to 1 on the NASDAQ.

Exchange        NYSE       NASDAQ

Advancers      1,041          1,165

Decliners        1,958          1,353

SPY moved down 77 cents on 207.6 million shares…

AAPL was down -5.05 to 553.22 on 17 million shares...

A +1.61, +4.14% following earnings after the close on Monday

HD -1.21, -2.43% following earnings Tuesday morning

SPLS, DLTR and ROST report earnings this week.

Technical Commentary:

The Euro continued lower closing at 1.2734. TNX closed 0.11 lower at its lowest level since October 4, 2011. JPM rose 45 cents. The VIX rose 0.10 to 21.97 its highest close since Jan 17.

The SPY will likely continue the short term down trend with the Euro continuing to fall.

XLF closed down 7 cents.

Breakout Setup – ADM, GOOG, AMZN, CATM, AMGN

Pullback - UAL, GILD, EBAY, CRUS

Flag Bounce – EXPE

Flag Setup – LNKD, CHL, FIRE, BGC, LULU, GRMN, URE, DLR, TSL, SWI, ROST, VRSN, DLTR, WCRX, CTXS, SHLD, BA, CERN, DDD, GWR

Confirmed MACD Divergence – AKAM, FLEX, BRCM, FAST

Potential MACD Divergence - SWK, BAC

Bear Flag Bounce - SPLS

45 of 100 NDX stocks closed higher on Tuesday…

Leading NDX 100 stocks included CTRP, FLEX, CTSH, INFY, AKAM, BIDU, ADSK, DLTR, BMC, CHKP

Lagging NDX stocks included FOSL, RIMM, FSLR, WCRX, MU, GMCR, SPLS, SIRI, GOLD, SNDK

Leading stocks > +2% on Tuesday included A, GRPN, ZAGG, SWKS, SWI

Losing stocks < -2.0% included PCX, ANR, MCP, X, ATI, FCX, CDE, CLF, AKS, TSL, SLB, SWK, CREE, RVBD, TSLA, ZION

Stocks to Watch on Wednesday

Holding Above 30 DMA = 9
TLT, URE, CHL, LNKD, CRUS, SWI, VECO, FAZ, UAL

Moving Above 30 DMA = 2
GRPN, LDK

Moving Below 30 DMA = 2
CREE, TSL

Staying Below 30 DMA
STI, WDC, DLR, NTES, NKE, ATI, 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, 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

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