Stocks Form Bullish Engulfing Pattern as SPY Finds Support...

The SPY opened lower on Monday, after French and Greek elections over the weekend, but found support near the open and moved higher.  After the SPY broke short-term support on Friday, buyers appeared at 136.46, on Monday, in the area of its 136 intermediate term support.

Four of nine sectors moved higher on Monday.  Sectors XLF and XLV and XLP were the strongest sectors.

Breadth strengthened as advancers lead decliners 1.18 to 1 on the NYSE and 1.21 to 1 on the NASDAQ.

Exchange        NYSE       NASDAQ

Advancers      1,624          1,372

Decliners        1,373          1,125

SPY moved up 10 cents on 127.7 million shares…

 AAPL was up 4.23 to 569.48 on 16.4 million shares…

Technical Commentary:

Many stocks along with the SPY found support near the low end of their six week trading range on Monday.  While support is an area Monday’s buying is suggesting that the SPY and many stocks may bounce rather than break support.  Many stocks formed bullish candle patterns.

UAL moved higher after a Flag bounce on Friday as oil moved lower on Monday.

Bullish Engulfing Patterns – CERN, EBAY, PNRA, STX, BAC, WFC, WDC, ZION, GOOG, DLTR, EXPD, MNST, VOD, ADM, DDD

Piercing Line Patterns – AMZN, AAPL, GS, SYMC, SWK, XLF, FA, NWSA, SRCL, BIIB, FSLR, NUAN

Hammer – ADP, AKAM, ALXN, BA, CHKP, MAT

Inverted Hammer – NFLX, FFIV, LRCX, MRVL, MXIM, PCLN, XLNX

Potential Morning Star (look for third candle on Tuesday) – X, ADBE, ADSK, AMAT, BRCM, FAST, FISV, FLEX, GILD, INTC, INTU, ISRG, KLAC, LIFE, XRAY, ORLY, PAYX, SHLD, SPLW

Flag Bounce – GWR, ADM, DDD, IMAX, VECO, CERN

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

42 of 100 NDX stocks closed higher on Monday…

Leading NDX 100 stocks included VRTX, FSLR, STX, GOOG, NVDA, EBAY, YHOO, MNST, BIIB, NWSA, CERN, EXPD

Lagging NDX stocks included CTSH, GMCR, FOSL, INFY, WYNN, ORCL, RIMM, BIDU, NTAP ALTR, MSFT

Leading stocks > +2% on Monday included UAL, GRPN, CREE, BAC, VECO, TSLA, ZION, FAS, HUM, CRUS

Losing stocks < -2.0% included TPX, ZAGG, LNKD, CDE, LDK, SWI, ANF, JNPR, CROX, MCP

Stocks to Watch on Tuesday

Holding Above 30 DMA = 14

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

Moving Above 30 DMA = 1

UAL

Moving Below 30 DMA = 3

ANF, AGI, ZAGG

Staying Below 30 DMA

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