SPY, DIA, QQQ, IWM and Many Stocks Form Outsided Day in Bull Flag Pattern...

The SPY opened higher and sold off as the Euro turned lower shortly after the open and moved down 101 pips in about 90 minutes reaching a low of 1.2233.  For only the second time in the past twelve months the SPY formed an Outside Day at support.  The last time this occurred was Aug 1, 2011 when the SPY was already below its 30 DMA and the VIX was at 23.66.

Seven of nine sectors moved lower on Tuesday.  XLU, XLP, and XLV were the strongest sectors.

Breadth weakened as decliners led advancers 1.94 to 1 on the NYSE and 2.02 to 1 on the NASDAQ.

Exchange      NYSE    NASDAQ

Advancers     1,022          819

Decliners       1,985       1,657

SPY moved down -1.18 to 134.14 on 167.8 million shares, closing above its 30 DMA for the tenth consecutive day.  The SPX moved down -10.99 at 1,341.47. 

The Market Forecast green line is in the upper reversal zone.

AAPL down -5.68 at 608.21 on 18.3 million shares...

FB down 70 cents at 31.47 on volume of 14.3 million shares...

GRPN -0.48, -5.46%…

AA fell -36 cents after reporting earnings after the close with revenues higher than expected on Monday.  JPM and WFC will report on Friday.

Chart Patterns

Daily Bull Flags Setups: AVGO, CIEN, INTU, VMI, TFM, ZAGG, COST, ADP, HSY, SHW, VECO, JDSU, VRSN, VMED, GOOG, LLTC, SPY, C, DIA, QQQ, AKAM, MOS, IWM, COF, DIS, COP, SHLD, POT,  X, FISV, GE, ALXN, FAS, URE, PCLN, DE, AMZN, CSTR, ALGN, NVDA, UCO, APOL, MU, MLNX, MTW, NFLX, LNG, CL, LEN, EXPE,

Flag Bounce:  ESRX, TSLA, ULTA

Flag Bounce Pullback: SPG, FMC

Breakout:

Breakout Pullback: GMCR, AAPL

Breakout Continuation: KMB,

Breakout Setup: AKS, MNST, GOLD, GLW,

At Support: EBAY, ALTR, KLAC,  MCP, CTXS, ADSK, F, MCHP, VMW,

Break of Support: CRUS, AMAT, MRVL, CROX

Technical Commentary:

The SPY, DIA, QQQ and IWM each formed an Outside Day which was a new low day in their bull flag pattern.  AAPL formed a dark cloud cover, NFLX a small bearish engulfing in a slight flag pull back and ROST was down 1 cent forming a potential shooting star near the top of a large white candle or the pause that refreshes. 

Many stocks formed an Outside Day which may have been a failed entry in their bull flag setup.  Stay with the trend and watch for a potential bounce entry on Wednesday or Thursday.   

Tuesday Highlights:

SPY closes down -1.18

The Euro moved up 25 pips, closed at 1.2312

TNX -0.15

VIX gained +0.74 at 18.72

XLF down -11 cents at 14.34

21 of 100 NDX stocks closed higher on Tuesday…

Leading NDX 100 stocks included ESRX, WFM, SRCL, ORLY, PNRA, YHOO, AVGO, BIIB, CMCSA, DELL

Lagging NDX stocks included GMCR, MU, RIMM, SNDK, APOL, EXPE, ISRG, BIDU, LIFE, NFLX

Leading stocks > +2% on Tuesday included FAZ

Losing stocks < -2.0% included CRUS, ANR, GRPN, LDK, CDE, AKS, SINA, FCX, INFA, RVBD, CROX, UCO, LNKD, SWKS, CREE, CSTR, MCP, HLF, URE, FAS, DE, JNPR, CLF, SWK, FB, TSL, ESI

Stocks to Watch on Wednesday

Holding Above 30 DMA = 26

CIEN, ICE, GES, CSTR, DLR, HLF, URE, MOS,  V, UAL, CHL, ESI, DE, FAS, STI, ZION, AKS,  X, ANF, ATI, SLB, VECO, ZAGG, TSLA, TLT, WDC

Moving Above 30 DMA = 0

Moving Below 30 DMA = 5

FCX, GS, LNKD, RCL, UCO

Staying Below 30 DMA

BAC, CREE, JDSU, LDK, MCP, PCX, SMH, CLF, CRM, CROX, CRUS, DHR, GLW, IBM, INFA, NTES, SWI, SWKS, TSL, A, C, CDE, SOHU, SWK, TBT, HUM, CMG, SINA, F, RVBD, GRPN, FAZ, NKE, LDK, VMW, TIF, ANR, JNPR, LVS,  TPX, COH

Four Week Intermediate Term Market Trend: Up

Short Term Market Trend: Down