Grinch Appears With Bearish Engulfing on December's First Trading Day...

All nine sectors moved lower on Monday… XLK, XLV, and XLF were the strongest sectors. 

Breadth weakened on Monday as decliners led advancers …1.52 to 1 on the NYSE and 1.23 to 1 on the NASDAQ…

SPY down 71 cents at 141.45...volume 124.6 million shares…

VIX up 0.77 at 16.64…
TNX up 0.22 at 16.28…

TLT up 11 cents at 124.66…
XLF down 6 cents at 15.70…volume 50.9 million shares

AAPL up 0.91 at 586.19…volume 13 million shares …

FB down 0.96 cents at`27.04…on volume of 123.5 million shares…

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Technical Commentary:

The SPY formed a bearish engulfing pattern above its 30 DMA, the VIX moved up and did confirm the SPY move down.

The ES closed down 8.75 at 1,406.75…NQ futures closed down 7.50 at 2,670.25.

The weight of the evidence continues to suggest the Nov 16 low is likely to hold and Monday’s price action on relatively lighter volume suggests a pause/pullback is here prior to a continuation to higher levels .

The Euro closed up 65 pips at 1.3051 on Monday.

TNX, interest rates moved higher and TLT, bonds moved up 11 cents.  XLF was 6cents lower at 15.70.

SPY – bearish engulfing, outside day, support at 30 DMA

AAPL – gap up black candle, above 30 dma

FB – bearish engulfing, pause, BO target 29.63

FAS – bearish engulfing, pause at ST resistance

AMZN – bearish engulfing, pause, BO target 259.24

EXPE – bearish engulfing, pause

STX – doji bullish harami, lower low

VIAB – bearish engulfing, pause, close below 30 DMA

RIMM – spinning top, BO setup

CRUS – bearish engulfing, DBO setup neckline inverse head & shoulders

F – bearish engulfing, BO setup

PHM – doji, below 30 DMA

SWK – bearish engulfing, ST support at 30 DMA

SWI – bearish engulfing, pause

RAX – bearish engulfing, BO setup above 30 DMA

URI – gap up black spinning top, BO setup above 30 DMA

YELP bullish harami inverted hammer, bull flag pull back under 30 DMA

XHB – bearish engulfing confirm hanging man, BO setup, above 30 DMA

XRT – bearish engulfing holds above S1, above 30 DMA

BO = breakout, DBO = diagonal breakout, CT = counter-trend, IT = intermediate term, ST = short term

The Market Forecast Green Line is pointed up above the lower reversal zone.

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Chart Targets:

SPY = 143.52 short-term resistance
ES = 1,419.50…1,425 short-term resistance

EUR/USD = 1.3076 short-term resistance

Short-term support at
1.2954, 1.2878 = Euro

140.69 = SPY

83.20 = SPXL
1,396 = ES
2,626 = NQ

Setups:
Bull Flag:  COH, CREE, GRPN, NKE, SWK, VMW, YELP, OSK

Horizontal Setup:  ROVI, A, BAC, CHL, CIEN, CRM, F, FAS, JNPR, LVS, MCP, MOS, RAX, RCL, SMH, URI

Diagonal Setup:  CMG, CRUS, DE, IBM, STI, TER

Moves:

Gap Up:  DECK, DELL, AMD

Gap Down: 

 

Breakout: ULTA,  

Bounce:  VRSN, KAR, ROVI

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24 of 100 NDX stocks closed higher and 2 were unchanged on Monday…

Leading NDX 100 stocks included: VRSN, DELL, GMCR, GRMN, NTAP, SIRI, SNDK, STX, KRFT, BIIB, WYNN, PCLN, FAST, MYL

Lagging NDX stocks included: NFLX, SPLS, NUAN, MXIM, EA, NVDA, GOLD, VRTX, CA, EXPE, MCHP, MAT, CTXS, EBAY, FOSL, AKAM

Leading stocks > +2% on Monday included:  DECK, TSLA

Lagging stocks < -2.0% included: ESI, FB, AKS, TSL, ANR, MOS, ATI

Stocks to Watch on Tuesday…

Holding Above 30 DMA = 66
YHOO, MYL, ORLY, CERN, RIMM, XRAY, PCLN, SBUX, QCOM, HSIC, GILD, NTAP, CSCO, EXPE, GMCR, VMED, ATVI, CHKP, EA, EXPD, LLTC, MXIM, PCAR, TXN,  XLNX, AMGN, BIIB, CELG, DLTR, EBAY, LIFE, SIAL, AMZN, BBBY, FISV, ADSK, ALTR, AVGO, CHRW, DELL, FFIV, MAT, MRVL, MU, ORCL, AAPL, BRCM, INFY, SRCL, BMC, COST, KRFT, MNST, ADBE, ALXN, CMCSA, GOOG, GRMN, NWSA, SYMC, WYNN, AMAT, CTSH, NUAN, PAYX, WCRX

Moving Above 30 DMA = 1

SIRI

Moving Below 30 DMA = 6

ADP, FOSL, INTU, NFLX, SPLS, VIAB

Staying Below 30 DMA

CTXS, LRCX, NVDA, ISRG, WFM, KLAC, LINTA, SHLD, FLEX, STX, AKAM, GOLD, MCHP, MSFT, PNRA, SNDK, FAST, INTC, BIDU, ESRX, VRSN, APOL, VRTX, VOD, DTV, CA, ROST

Fourteen Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Neutral