Tuesday, June 26, 2012

SPY Bounces at Support as XLY, XLE and XLF Move Higher...


The Euro rallied from overnight lows after the open and then fell to the 1.2440 area before rallying more than 60 pips.   Interest rates, financial stocks and the broad indexes moved higher.  Bonds and VIX volatility moved lower.

All nine sectors moved higher on Tuesday.  XLY, XLE, and XLF were the strongest sectors.

Breadth strengthened as advancers led decliners 1.76 to 1 on the NYSE and 1.26 to 1 on the NASDAQ.


Exchange      NYSE    NASDAQ
Advancers     1,918       1,383
Decliners       1,084        1,091

SPY moved up 66 cents on 141.4 million shares closing above its 30 DMA.  The SPX gained +6.27 at 1,319.99. 


The Market Forecast green line is pointed down.

AAPL up +1.26 at 5723.02 on 9.8 million shares...

FB up $1.04 at 33.10 on volume of 24.8 million shares...

GRPN +0.36, +3.64%


Tuesday produced several stocks that bounced and broke above the high of the low day for a potential bull flag entry.

Daily Bull Flags: AKAM, ULTA, CSTR, AVGO, MLNX, ROST, URE, NFLX, CRUS, IWM, AAPL, ORLY, ALGN, PCLN, JDSU, EXPE, C, PNRA, MCHP, SPY, DIA, QQQ, GOLD. MSFT, TSLA

Flag Bounce:  AMZN, VRSN, SHLD, CMG, ALXN, MNST, CTXS, HSY, CIEN, COST, DE, INFA, ICE, SXCI, MCD, CL, COF, URE, COP, DIS, SHW, KMB, LEN, FAS, SPG, EBAY

Breakout: VMED, APOL, MOS, POT

C Pattern Continuation: CSTR, SRCL, SIAL, FISV, SHLD, V,    

C Pattern Pullback: TSLA, MSFT, ISRG, CTXS, AVGO, AAPL

C Pattern Reversal: VMI, SWKS

C Pattern Entry: SAVE, FAS, SBUX, DKS, INTU

C Pattern Setup: SWI, CRM, ORLY, HIBB, ODFL, PIR, A, DHR, FMC


Break of Support:  QCOM, MRVL, BIDU

Support Bounce: ZAGG, GOOG, VECO, TFM

At Support:  VMW, TPX, MRVL, EXPD, F, ALTR, LVS, RVBD, MCP, TFM, CROX


Technical Commentary:
SPY rose 66 cents forming a hammer on moderate volume of 141.4 million shares as buyers returned on Tuesday and the short term support area of 130.50 held.  Breadth improved as the Euro bounced off its early morning lows.  Patience was rewarded on Tuesday as many stocks gave bull flag entry signals.    


Tuesday Highlights:
SPY closes up 66 cents
The Euro moved down 9 pips, closed at 1.2494
TNX +0.20
VIX fell -0.66 at 19.72
XLF closed +7 cents at 14.11


71 of 100 NDX stocks closed higher on Tuesday…


Leading NDX 100stocks included APOL, NWSA, SHLD, STX, CELG, SPLS, VRSN, AMZN, VRTX, LINTA

Lagging NDX stocks included FSLR, CTSH, RIMM, EXPD, EA, NTAP, TEVA, DTV, CSCO, LRCX

Leading stocks > +2% on Tuesday included NTES, MOS, VECO, GRPN, LNKD, FB, STI, CLF, DE

Losing stocks < -2.0% included PCX, TSL, LDK, TSLA, ANR, SINA

Stocks to Watch on Wednesday

Holding Above 30 DMA = 19
TLT, CRUS, CIEN, ICE, GES, CSTR, HUM, BAC, DLR, HLF, URE, LNKD, MOS,  TSLA, V, CMG, UAL, CHL, ESI

Moving Above 30 DMA = 5
DE, FAS, INFA, RCL, STI

Moving Below 30 DMA = 12
TSL

Staying Below 30 DMA
C, JDSU, MCP, SINA, SMH, SWI, SWKS, NTES, A, CDE, CLF, DHR, F, FCX, GLW, GS, IBM, RVBD, SLB, VECO, GRPN, FAZ, DECK, NKE, ZAGG, CRM, LDK, CREE, WDC, ANF, ATI, VMW, ESI, TIF, UCO, AKS, ANR, JNPR, X, SOHU, CROX, LVS, PCX,  SWK, TPX, ZION, TBT, COH

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

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