Now You Know Why I Was Singing, If I Had a Hammer...SPX Rises...



The SPX formed a large white candle that confirmed Tuesday’s hammer as it continue its support bounce from its 61.8% Fib level measured from its April 18 low and closed +11.70 at 1,340.68.  The VIX fell to 16.23 confirming the support bounce.

Each of the broad indexes confirmed Tuesday’s bullish candle and moved higher.  The SPX, INDU, COMPQ and NDX closed above its 30 DMA. 

Perhaps a few more see that complex consolidations or price channels can produce entry signals.

As I wrote yesterday, “it is important for you to see them in context of trend, support and resistance and the momentum of the Tuesday’s bullish candle, so that you can take lower risk higher return potential entries as they occur.”

I did move the stop down on Monday night’s SPY Put paper money virtual trade from $135.46 to $133.65 which was above the high of the low day and was stopped out early today with a loss.  This is consistent with what I said Monday night and what I wrote last night.

(click image to enlarge)

SPX large white candle confirms hammer, close above 30 DMA +0.88%

INDU bullish engulfing, close above 30 DMA +0.65%

COMPQ morning star, close above 30 DMA +1.14%

RUT morning star, below 30 DMA +1.60%

Breadth strengthened significantly as advancers led decliners 3.56 to 1 on the NYSE and 2.84 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      2,363            1,923

Decliners           663               677

Index              Chg.    Close   Direction    Confirmation

VIX                -1.32      16.23      Down          Yes – SPX

SOX              +8.11    437.59      Up               Yes – COMPQ

Leading stocks > +2% on Wednesday included VECO, ARUN, UCO, CF, SWKS, RVBD,FCX, JDSU, IPI, ATW, ANF, CRM, CAT, HUM, CLF, IAG, GMCR, PCX, SWK, VLO, TBT, FWLT,DHR, TIF, POT, NVDA, VMW, UNP, AKS, SMH, DEC, AGU, NGLS, URE, SLB

Losing stocks < -2.0% included ESI

Key Earnings this week:  ADSK, ANF, ARUN, CRM, DE, DELL, HPQ, LDK, TSL, HD, JCP, LOW, WMT, GME, SHLD, TGT

Positives – SPX, VIX, INDU, COMPQ, RUT, breadth and sectors strengthened, AAPL, AMZN, NFLX, PCLN, TNX

Negatives – TLT

Interest rates TNX +0.50 moved down and bond ETF TLT moved down -$1.28.  Financial stocks XLF rose 7 cents. The Euro moved up 12 pips to 1.4248 at 5 pm on Wednesday.

Eight of nine sectors moved higher on Wednesday.  Materials XLB +2.23%, Energy XLE +2.02% and Industrials XLI +1.58% were the strongest sectors.

Material stocks rising more than 2% included CF, MON, FCX, WY, ECL, EMN, OI, PX, AKS, APD, BLL

Many stocks that have pulled back over the past week and formed bullish candles on Tuesday created support bounce potential entry signals for some traders today. 

Support Bounce Potential Entries on Up Trending Stocks:  CERN, DLTR, ADP, EXPE, SIAL, MCHP, CHRW, CTXS, HSIC, VMED, COST, EXPD, ORLY, ALTR, DELL, LLTC, DTV, FLIR, INTC, MXIM, NTAP, AMGN, XRAY, XLNX, ERTS, VRSN, HUM, HLF, DHR, ANF, DLR, TIF, URE, VECO, GMCR, RVBD, CMG, SWN, VMW, FFIV

Up trending stocks include:  MICC, CELG, SYMC, CHKP, ILMN, LIFE, LINTA, VRTX, ROST, QCOM, FAST, NIHD, ESRX, BMC, ADSK, ADBE, WCRX, CSTR, A, V, TLT, MHS, GES, HAS, UAL, ACN

SPX

Resistance: 1,344, 1,352, 1,367

Support: 1,330, 1321, 1310

The short term 3 day trend is up.

The six-month trend is up.

The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

AAPL +3.75 – white candle, below 30DMA

AMZN +2.28 – white candle, confirms inside day, above 30 DMA

BIDU +0.03 – spinning top, below 30 DMA

GOOG -0.65 – dragonfly doji, below 30 DMA

NFLX +5.60 – white candle confirms hammer, close above 30 DMA

PCLN +13.98 – white candle confirms hammer, below 30 DMA

QCOM +0.10 – spinning top, above 30 DMA

NDX 100 stocks stronger than the NDX include DELL, FFIV, EXPE, CERN, VRSN, BRCM, RIMM, SBUX, ALTR, JOYG, XLNX, WYNN, PCLN, NTAP and NFLX.

Stocks weaker than the NDX include MU, CTRP, SNDK, ILMN, LIFE, MCHP, JOYG, KLAC, ADSK, FLEX, AKAM, PCAR, NTAP, QGEN and ALTR.

Stocks to Watch on Thursday

Holding Above 30 DMA

HUM, HLF, CSTR, DHR, A, ANF, DLR, TIF, V, URE, TLT, MHS, GES, SMH, UNP, VECO, HAS, UAL, GMCR, RVBD, FAZ, JNPR, ACN, ICE, CMG, SWN, VMW

Moving Above 30 DMA = 8

AMD, ARUN, ATW, CF, CREE, JDSU, STI, SWK

Moving Below 30 DMA = 0

Staying Below 30 DMA

ESI, GLW, SNDK, ATI, CIEN, CRM, NYX, CHL, DOW, F, NVDA, FWLT, ZION, CAT, IL, NDAQ, SWKS, VLO, WDC, MCP, SINA, WLT, FAS, LVS, SOHU, UNG, UCO, DE, NETL, NGLS, PCX, AGU, AKS, FCX, IPI, LDK, SLB, TSL, CLF, DECK, NTES, POT, JEC, SLW, IAG, GS, CDE, TBT, MOS, X, CAM, BAC, CRUS

Intermediate Term Market Trend: Up

Short Term Market Trend: Up

Futures Point to a Flat to Higher Open...

BMO – ES +2.50 and NQ +2.50 futures are mixed about 10 minutes before the open in pre-market trading and point to a flat open… volume is moderate for pre-market with more stocks quoting up than dpwn…Financial stocks, XLF which formed a bullish engulfing at support on Tuesday is quoting unchanged on 38,800 volume in pre-market…

TLT is down -34 cents and the Euro is down -32 pips in premarket trading…

NDX leaders AAPL, AMZN, are quoting down in pre-market trading…BIDU, GOOG, NFLX and PCLN are higher and QCOM is flat…

HLF split 2 for 1 if your charts haven’t yet adjusted…DELL +0.87 and ANF +2.93 are higher following earnings…

Dave’s Insight for Wednesday:  The SPX formed a hammer on Tuesday and looks poised to bounce from a lower low 61.8% Fib level (from April 18…Trade a bounce and move the stop down if you traded a bearish breakout on Tuesday, according to your rules…Many stocks formed bullish candle patterns (potential momentum shift) and could reverse the recent shorter term down trend…Continue to follow your rules…Continue to watch XLF for support of a SPX bounce…Manage your trades based on the price action you see on the chart you are trading…Horizontal support on SPY is 133 and it is above that in pre-market trading…

SPX

Resistance: 1,344, 1,352, 1,367

Support: 1,330, 1321, 1,310

Quoting Down – CMG, DE, CSTR, TLT, ZION, DLR, SPLS, APOL, CELG, URBN, BMC, ESRX, FISV, CTXS, NIHD, MCHP, CTRP

Quoting Up – ANF, UCO, SINA, SWKS, ICE, URE, CRM, ARUN, CAT, SOHU, VMW, FCX, MOS, SLW, ANR, TSL, NYX, GMC, CDE, POT, NDAQ, PCX, NTES, RIMM, ADSK, DELL, NFLX, SRCL, PCLN, BIDU, CHRW, FAST, GOOG, SIAL, FSLR, FSLR, CERN, VRSN, COST

If I Had a Hammer, I'd Hammer in the Morning...SPX Forms Hammer...

The SPX formed a hammer as it bounced up from its 61.8% Fib level from its April 18 low and closed -0.49 at 1,328.98.  The VIX fell to 17.55 a seeming confirmation of the support bounce.

Each of the broad indexes today formed a bullish candle of some type inside of a short term price channel.  Some traders would call these complex consolidations flags, others would not.  They are price channels and a flag is also a price channel.  Traders typically trade these channels with a bounce above the high of the low day, which is today, or wait for the breakout above the falling resistance line of the channel. 

However you choose to potentially trade these consolidations, it is important for you to see them in context of trend, support and resistance and the momentum of the Tuesday’s bullish candle, so that you can take lower risk higher return potential entries as they occur.

Major NDX stocks AAPL, AMZN, BIDU, GOOG, NFLX, PCLN and QCOM also formed bullish candles as referenced below.

With Tuesday’s SPX hammer I will be moving the stop on Monday night’s SPY paper money virtual trade to above the high of the low day, just in case today is the end of the short term pull back.

(click image to enlarge)

SPX hammer, bounce a 61.8% Fib level, below 30 DMA -0.04%

INDU hammer, bounce a 61.8% Fib level, below 30 DMA -0.55%

COMPQ white candle, bounce at 161% Fib extension, below 30 DMA +0.03%

RUT white spinning top, at support, below 30 DMA -0.31%

Breadth strengthened as decliners led advancers 1.38 to 1 on the NYSE and 1.43 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      1,257            1,076

Decliners        1,735            1,540

Index              Chg.    Close   Direction    Confirmation

VIX                 -0.69     17.55      Down           No – SPX

SOX               -5.21   429.48      Down          No – COMPQ

Leading stocks > +2% on Tuesday included SINA, ANR, WLT, SOHU, PCX, POT, ARUN, MCP, ATW, STI, ZION

Losing stocks < -2.0% included LDK, TSL, ESI, CAT, NYX, SNDK, JDSU, FWLT, DOW, IL, UNG, CAM, SWKS, A, ATI

Key Earnings this week:  ADSK, CRM, DE, DELL, HPQ, LDK, TSL, JCP, LOW, WMT, HD, GME, ANF, SHLD, TGT

Positives – SPX, VIX, COMPQ, breadth and sectors strengthened, Euro, AAPL, AMZN, BIDU, GOOG, NFLX,

Negatives –INDU, RUT, TNX, breadth was negative

Interest rates TNX -0.28 moved down and bond ETF TLT moved up 98 cents.  Financial stocks XLF rose 12 cents. The Euro moved up 83 pips to 1.4236 at 5 pm on Tuesday.

Four of nine sectors moved higher on Tuesday.  Financials XLF +0.76%, Utilities +0.74% and Consumer Staples XLP +0.22% and were the strongest sectors.  XLE, XLV and XLK were unchanged and XLI and XLB moved lower.  I don’t recall the last time I saw three unchanged sectors. 

Many stocks have pulled back over the past week and yet are still in good up trends.  Many of these stocks formed bullish candles on Tuesday. 

Up trending stocks include:  CERN, DLTR, ADP, EXPE, SIAL, MICC, CELG, MCHP, SYMC, CHKP, CHRW, CTXS, HSIC, ILMN, VMED, COST, EXPD, LIFE, LINTA, VRTX, ROST, ALTR, ORLY, DELL, LLTC, QCOM, DTV, FAST, FLIR, INTC, MXIM, NIHD, NTAP, AMGN, XRAY, XLNX, ESRX, BMC, ERTS, VRSN, ADSK, ADBE, WCRX, HUM, HLF, CSTR, DHR, A, ANF, DLR, TIF, V, URE, TLT, MHS, GES, VECO, HAS, UAL, GMCR, RVBD, ACN, CMG, SWN, VMW

SPX

Resistance: 1,344, 1,352, 1,367

Support: 1,330, 1321, 1310

The short term 3 day trend is down.

The six-month trend is up.

The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

AAPL +2.84 – piercing line, below 30DMA

AMZN +2.30 – white candle, inside day, above 30 DMA

BIDU +4.04 – bullish engulfing confirms inverted hammer, below 30 DMA

GOOG +12.04 – bullish engulfing, below 30 DMA

NFLX -0.15 – hammer, close at 30 DMA

PCLN +1.02 – hammer, below 30 DMA

QCOM -0.35 – dragon fly doji, above 30 DMA

NDX 100 stocks stronger than the NDX include BIDU, VOD, EXPE, URBN, GOOG, RIMM, VMED, AMGN, WYNN, CELG, MICC, BIIB, CMCSA, YHOO and BMC.

Stocks weaker than the NDX include MU, CTRP, SNDK, ILMN, LIFE, MCHP, JOYG, KLAC, ADSK, FLEX, AKAM, PCAR, NTAP, QGEN and ALTR.

Stocks to Watch on Wednesday

Holding Above 30 DMA

HUM, HLF, CSTR, DHR, A, ANF, DLR, TIF, V, URE, TLT, MHS, GES, SMH, UNP, VECO, HAS, UAL, GMCR, RVBD, FAZ, JNPR, ACN, ICE

Moving Above 30 DMA = 3

CMG, SWN, VMW

Moving Below 30 DMA = 5

AMD, ESI, GLW, JDSU, SNDK

Staying Below 30 DMA

ATI, CIEN, CRM, NYX, CHL, DOW, F, NVDA, CF, FWLT, ZION, CAT, IL, NDAQ, STI, SWK, SWKS, VLO, WDC, ARUN, MCP, SINA, WLT, FAS, LVS, SOHU, UNG, UCO, DE, NETL, NGLS, PCX, AGU, AKS, ATW, FCX, IPI, LDK, SLB, TSL, CLF, DECK, NTES, POT, JEC, SLW, IAG, GS, CDE, TBT, MOS, X, CAM, BAC, CRUS

Intermediate Term Market Trend: Up

Short Term Market Trend: Down

Futures Point to a Lower Open...

BMO – ES -2.50 and NQ -5.75 futures are lower about 20 minutes before the open in pre-market trading and point to a lower open… volume is moderate for pre-market with more stocks quoting down than up…Financial stocks, XLF is quoting down -7 cents on 132,100 volume in pre-market…

TLT is up 30 cents and the Euro is down -20 pips in premarket trading…

NDX leaders AAPL, AMZN, GOOG, NFLX and PCLN are quoting down in pre-market trading…BIDU is higher and QCOM is flat…

Dave’s Insight for Tuesday:  The SPX closed at support and looks to open below this morning suggesting the potential to move lower to 1,300…Trade a breakout if it occurs according to your rules…Many stocks are consolidating and others have already broken support and are headed lower…Continue to follow your rules…Continue to watch XLF for support of a SPX bounce…Manage your trades based on the price action you see on the chart you are trading…Horizontal support on SPY is 133 and it is below that in pre-market trading…

SPX

Resistance: 1,344, 1,352, 1,367

Support: 1,330, 1321, 1,310

Quoting Down – CTRP, PCLN, GOOG, NFLX, TSL, MCP, CRM, CAT, DE, UCO, URE, WLT, MOS, JDSU, SLB, NYX, TBT, PCX, ARUN, LDK, FAS, SLW, AMZN, ALXN, AAPL, TEVA,MCHP, AKAM, DELL INTC

Quoting Up – TLT, GMCR, FAZ, SINA, VOD, MICC, URBN

SPX Falls to Support as NDX Breaks Support Moves Lower...

The SPX closed -8.30 at 1,329.47 at horizontal support.  The SPX and INDU closed above their 30 DMA and the COMPQ and RUT closed below their 30 DMA.  Weakness in tech stocks XLK and Consumer Discretionary sector XLY led the SPX down to support.  Defensive sectors XLV, XLU and XLP kept the SPX above support.  Financial stocks XLF did not put pressure on the SPX

Major NDX stocks AAPL, AMZN, BIDU, GOOG, NFLX and PCLN had a big sell off on heavy or rising volume.

Trade stocks to the downside that make lower highs and lower lows or that break horizontal support according to your rules.   

SPX inverted hammer, at support and 30 DMA -0.62%

INDU spinning top, at support, at 30 DMA -0.38%

COMPQ large black candle, break support and 30 DMA -1.63%

RUT large black candle, at support, below 30 DMA -2.90%

Breadth on Monday strengthened slightly as decliners led advancers 2.09 to 1 on the NYSE and weakened slightly 3.87 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         974               541

Decliners        2,038            2,097

Index              Chg.    Close   Direction    Confirmation

VIX                +1.17     18.24      Up              Yes – SPX

SOX               -6.26   434.69      Down          Yes – COMPQ

Leading stocks > +2% on Monday included ICE, SNDK, UAL, IAG

Losing stocks < -2.0% included NYX, MCP, ARUN, NETL, VMW, UCO, CRM, SWKS, JDSU, SOHU, LVS, CIEN, LDK, CRUS, NVDA, WDC, IL, PCX, CMG, AMD, NDAQ, HLF, TSL, ANF, GMCR

Key Earnings this week:  ADSK, CRM, DE, DELL, HPQ, LDK, TSL, JCP, LOW, WMT, HD, GME, ANF, SHLD, TGT

Positives – SPX and INDU, stayed above May 5 low of short term horizontal support, INDU closed above 30 DMA, NYSE breadth and sectors strengthened, Euro

Negatives – SPX, VIX, INDU, COMPQ, RUT, TNX, AAPL, AMZN, BIDU, GOOG, NFLX, PCLN

Interest rates TNX -0.38 moved down and bond ETF TLT moved up 53 cents.  Financial stocks XLF dropped -2 cents. The Euro rose 41 pips to 1.4153 at 5 pm on Monday.

Six of nine sectors moved lower on Monday.  Healthcare XLV +0.17%, Utilities +0.12% and Consumer Staples XLP +0.03% and were the strongest sectors.

Many stocks have turned lower over the past three trading days.  These NDX stocks that are still up trending include:  CERN, DLTR, ADP, EXPE, SIAL, MICC, CELG, MCHP, SYMC, CHKP, CHRW, CTXS, HSIC, ILMN, VMED, COST, EXPD, LIFE, LINTA, VRTX, ROST, ALTR, ORLY, DELL, LLTC, QCOM, DTV, FAST, FLIR, INTC, MXIM, NIHD, NTAP, AMGN, XRAY, XLNX, ESRX, BMC, ERTS, VRSN, ADSK, ADBE, WCRX

SPX

Resistance: 1,344, 1,352, 1,367

Support: 1,330, 1321, 1310

The short term 3 day trend is down.

The six-month trend is up.

The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

AAPL -7.20 – large black candle, below 30DMA

AMZN -10.05 – large black candle, close above 30 DMA

BIDU -3.51 – inverted hammer, below 30DMA

GOOG -11.13 – large black candle, below 30 DMA

NFLX -9.43 – large black candle, close at 30 DMA

PCLN -17.23 – large black candle, below 30 DMA

QCOM -0.42 – black spinning top, above 30 DMA

NDX 100 stocks stronger than the NDX include SNDK, MU, XRAY, JOYG, INTC, FFIV, CA, CHRW, CEPH and SIAL.

Stocks weaker than the NDX include AMZN, YHOO, WYNN, NFLX, EBAY, CTSH, PCLN, ALXN, BRCM, CTXS, NVDA, AKAM, WCRX, ORCL and MRVL.

Stocks to Watch on Tuesday

Holding Above 30 DMA

HUM, HLF, CSTR, DHR, A, ANF, DLR, TIF, V, URE, TLT, MHS, AMD, GES, SMH, JDSU, UNP, VECO, HAS, UAL, GMCR, GLW, RVBD, ESI, FAZ, JNPR

Moving Above 30 DMA = 3

ACN, ICE, SNDK

Moving Below 30 DMA = 6

ATI, CIEN, CMG, CRM, NYX, VMW

Staying Below 30 DMA

CHL, DOW, F, NVDA, SWN, CF, FWLT, ZION, CAT, IL, NDAQ, STI, SWK, SWKS, VLO, WDC, ARUN, MCP, SINA, WLT, FAS, LVS, SOHU, UNG, UCO, DE, NETL, NGLS, PCX, AGU, AKS, ATW, FCX, IPI, LDK, SLB, TSL, CLF, DECK, NTES, POT, JEC, SLW, IAG, GS, CDE, TBT, MOS, X, CAM, BAC, CRUS

Intermediate Term Market Trend: Up

Short Term Market Trend: Down

Futures Point to a Lower Open...

Dave is in town this week and will be doing his regular Trading Rooms:

9 pm EDT Monday - Advanced Technicals Trading Room
9:30 am EDT Thursday - Intro to Trading Stocks Trading Room
7 pm EDT Thursday - Advanced Technicals Trading Room (formerly Active Investor Talk)



BMO – ES -4.50 and NQ -4.50 futures are lower about 20 minutes before the open in pre-market trading and point to a lower open… volume is low for pre-market with a more stocks quoting down than up…Financial stocks, XLF is quoting down -7 cents on 7,900 volume in pre-market…

TLT is down -23 cents and the Euro is up 57 pips in premarket trading…

NDX leaders AAPL, AMZN, BIDU, GOOG, NFLX and PCLN are quoting down in pre-market trading…QCOM is higher…

NYX -4.14 is lower on heavy pre-market volume on DOJ suit news...

Dave’s Insight for Monday:  The SPX is in a triangle or channel type consolidation…Trade the breakout on either side of the present consolidation…Watch the SPX price to see if it stays above its 30 DMA or breaks below…Many stocks are consolidating and others have already broken support and are headed lower…Continue to follow your rules…Stay with the trend… Continue to watch XLF for support of a SPX bounce…Manage your trades based on the price action you see on the chart you are trading…Horizontal support on SPY is 133…

SPX

Resistance: 1,344, 1,352, 1,367

Support: 1,330, 1321, 1,310

Quoting Down – NYX, PCLN, GOOG, VRTX, AMZN, BIDU, SRCL, ESRX, BIIB, AAPL, SINA, ATW, VMW, SOHU, MCP, A, NDAQ, V, SLW, CAM, MOS, GS, CHL, PCX, HLF, FAS, NFLX, FFIV, RIMM, ALXN, CTRP, EBAY, ORCL

Quoting Up – ICE, IL, SNDK, DECK, IPI, ACN, ATI, JEC, FAZ, JNPR, CLF, WYNN, JOYG, WFMI, QCOM

SPX Closes Lower and Above 30 DMA...XLP, XLU, XLV, XLY Sectors Strong...

The SPX reversed Thursday’s one day gains, formed a large black candle, and closed -10.88 at 1,337.77 near horizontal support.  The SPX, INDU and COMPQ closed above their 30 DMA and the RUT broke and closed below its 30 DMA.

(click image to enlarge)

SPX large black candle, at support and 30 DMA -0.81%

INDU large black candle, at support, above 30 DMA -0.79%

COMPQ large black candle, above support and 30 DMA -1.21%

RUT large black candle, above support, close below 30 DMA -1.39%

Each of the broad indexes is now in a complex consolidation, meaning it is not a simple pull back.  It is a pull back that bounced and pulled back a second time forming a symmetrical triangle pattern.  Traders should be alert for a potential break of support.  If a break of support occurs the SPX chart suggests a move to its 1,310 support level.  Expect such a move to be confirmed by a rising VIX.

The sectors XLP, XLU, XLV and XLY are strong, while XLI and XLK are neutral and XLF, XLB and XLE are down near support.

(click image to enlarge)

While the SPX will likely continue to consolidate with a weak financial sector, a break of support will likely be accompanied with XLP, XLU, XLV and XLY rolling over from their recent highs.  In other words without a pull back in the strong sectors a SPX break of support is a small probability.

While leading NDX stocks AAPL, BIDU, GOOG and PCLN were weak Friday there are still a large number of NDX stocks including AMZN, ILMN and NFLX that are at or near recent highs.  NVDA gapped lower and moved down -10.93% on an analyst downgrade.

Breadth weakened on Friday as decliners led advancers 2.56 to 1 on the NYSE and 3.16 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         848               630

Decliners        2,173            1,997

Index              Chg.    Close   Direction    Confirmation

VIX                +1.04     17.07      Up              Yes – SPX

SOX               -6.18   440.95      Down          Yes – COMPQ

Leading stocks > +2% on Thursday included A, IL, FAZ, GES

Losing stocks < -2.0% included NVDA, SINA, LDK, MCP, PCX, FAS, TSL, ESI, CLF, AKS, DE, JDSU, WDC, WLT, ATI, STI, BAC, FWLT, CAT, X, IPI

Key Earnings this week:  ADSK, CRM, DE, DELL, HPQ, LDK, TSL, JCP, LOW, WMT, HD, GME, ANF, SHLD, TGT

Positives – SPX, INDU, COMPQ and RUT stayed above May 5 low of short term horizontal support, SPX, INDU and COMPQ closed above 30 DMA

Negatives – SPX, VIX, INDU, COMPQ, RUT, Euro, TNX, AAPL, BIDU, GOOG, PCLN

Interest rates TNX -0.43 moved down and bond ETF TLT moved up 84 cents.  Financial stocks XLF fell -23 cents. The Euro fell -169 pips to 1.4073 at 5 pm on Friday.

All nine sectors moved lower on Friday.  Consumer Staples XLP -0.12% and Healthcare XLV -0.30% were the strongest sectors.

Friday, Monday, Tuesday Bull Flag Entry Signals

Friday's Movement

Continued to Rise – EXPE, ILMN, ESRX, A, GES, NYX,

Pulled Back – HUM, CY, AMZN, CROX, CTRP, XRAY, MICC, CHKP, VECO, ACN, GLW, V, ISRG, EXPD, FFIV, ARUN, GMCR, VMW, AMD, ATI, CSTR, DHR, DLR, TIF, WDC, CTXS, BBBY, DTV, TUP, CAT, CIEN, DOW, UNP, URE, WYNN

Bull Flag Setups – F, SMH, SNDK, SWKS, SWN, UNG, ALTR, LLTC, QCOM, PCLN, CELG

No longer flag patterns: NVDA, MCP, SINA, BIDU, SOHU

SPX

Resistance: 1,344, 1,352, 1,367

Support: 1,330, 1321, 1310

The short term 3 day trend is neutral.

The six-month trend is up.

The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

AAPL -6.07 – large black candle break below 30 DMA

AMZN -3.51 – bearish engulfing

BIDU -6.92 – large black candle break support, below 30DMA

GOOG -5.50 – black candle, continue below 30 DMA

NFLX +0.75 – white spinning top

PCLN -3.35 – inverted hammer at support, below 30 DMA

QCOM -0.22 – potential bearish harami

NDX 100 stocks stronger than the NDX include ERTS, ILMN, AMGN, WCRX, BRCM, NFLX, ROST, ESRX, EXPE, GENZ, MYL, NTAP, WFMI, LRCX and EBAY.

Stocks weaker than the NDX include NVDA, CA, BIDU, FSLR, YHOO, PCAR, MU, MRVL, EXPD, HSIC, CTRP, AMAT, SNDK, SIAL and SYMC.

Stocks to Watch on Monday

Holding Above 30 DMA

HUM, HLF, CSTR, DHR, A, ANF, DLR, TIF, V, NYX, CIEN, VMW, URE, ATI, TLT, MHS, AMD, GES, SMH, JDSU, UNP, VECO, HAS, UAL, GMCR, GLW, RVBD, ESI, CMG, FAZ, CRM, JNPR

Moving Above 30 DMA = 0

Moving Below 30 DMA = 6

ACN, CHL, DOW, F, NVDA, SWN

Staying Below 30 DMA

CF, FWLT, ICE, ZION, CAT, IL, NDAQ, SNDK, STI, SWK, SWKS, VLO, WDC, ARUN, MCP, SINA, WLT, FAS, LVS, SOHU, UNG, UCO, DE, NETL, NGLS, PCX, AGU, AKS, ATW, FCX, IPI, LDK, SLB, TSL, CLF, DECK, NTES, POT, JEC, SLW, IAG, GS, CDE, TBT, MOS, X, CAM, BAC, CRUS

Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral


As some of you may have discovered on your own, Blogger had system wide technical difficulties since sometime on Thursday.  I was able to post Thursday morning but not Thursday evening or Friday until 4:16 pm PDT.  Apparently, to correct whatever their techincal issues were, Blogger had to remove all posts after a certain time on Wednesday and then restore those posts on all blogs.  While I have seen glitches over the past two years for a few minutes or an hour or so, this is the first day plus glitch that I have seen.

While it had nothing to do with Chart Signals as the cause, I apologize to any of you that accessed Chart Signals over the past two days and wondered why there was no new post Thursday evening and Friday morning.  I was not even able to log in a post a note about not being able to post.

Futures Point to a Lower Open...

BMO – ES -2.50 and NQ -8.50 futures are lower about 15 minutes before the open in pre-market trading and point to a lower open… volume is moderate for pre-market with a more stocks quoting down than up…Financial stocks, XLF is quoting down 5 cents on 83,600 volume in pre-market…

TLT is down 7 cents and the Euro is up 9 pips in premarket trading…

NDX leaders AAPL, AMZN, GOOG and PCLN are quoting down in pre-market trading…BIDU and NFLX are higher and QCOM is flat…

Dave’s Insight for Thursday: Wednesday momentum turned down and created a short term lower higher…as long as support holds this consolidation evolves from a simple flag to a triangle or channel type consolidation…Wednesday was a break of the low of the high day and an exit for some short term traders…Continue to follow your rules…Stay with the trend… Continue to watch XLF for support of the SPX bounce…Manage your trades based on the price action you see on the charts…

SPX
Resistance: 1,344, 1,352, 1,367
Support: 1,330, 1321

Quoting Down – UCO, ATW, CMG, SLW, SOHU, URE, GS, NTES, WLT, CAT, SWKS, MOS, FWLT, GMCR, CF, VLO, CRM, NYX, LVS, CDE, FAS, POT, RVBD, X, SLB

Quoting Up – SINA, ATI, CSTR, FAZ, UAL, HUM, IL

SPX Breaks the Low of the High Day...

The SPX opened lower and formed a black candle equivalent to a bearish engulfing and closed -15.08 at 1,342.08. Tuesday was the high day in a three day rally. Wednesday broke the low of the high day which is an short term exit for some traders. Oil, gold and silver all formed bearish engulfing patterns while moving lower on Wednesday.

SPX black candle -1.11%
INDU black candle -1.02%
COMPQ black candle -0.93%
RUT bearish engulfing -1.78%

Breadth weakened on Wednesday as decliners led advancers 2.57 to 1 on the NYSE and 3.24 to 1 on the NASDAQ …

Exchange     NYSE      NASDAQ
Advancers       857            626
Decliners      2,207         2,029

Index      Chg.       Close      Direction      Confirmation
VIX         +1.04        16.95         Up                Yes – SPX
SOX        -3.70      440.89        Down           Yes – COMPQ

Leading stocks > +2% on Wednesday included FAZ, LVS

Losing stocks < -2.0% included UCO, SLW, FCX, WLT, MCP, PCX, ATI, VLO,IAG, DOW, CLF, SWKS, AKS, CDE, FAS, JDSU, MOS, POT, DE, SOHU, LDK, SWN, AGU, IPI, CF, CHL, SLB, CAM, CAT, X, URE, ATW, VECO, NYX

Positives –AMZN, NFLX, TLT

Negatives – SPX, VIX, INDU, COMPQ, RUT, breadth and sectors weakened, XLF, Euro, TNX, BIDU, GOOG,PCLN

Interest rates TNX -0.38 moved down and bond ETF TLT moved up 54 cents. Financial stocks XLF dropped -22 cents. The Euro fell -197 pips to 1.4209 at 5 pm on Wednesday.


All nine sectors moved lower on Wednesday. Healthcare XLV -0.17% and Consumer Staples XLP -0.19% were the strongest sectors.


Friday, Monday, Tuesday Bull Flag Entry Signals
On Wednesday
Continued to Rise –HUM, NVDA, CY, AMZN

Pulled Back – CROX, CTRP, XRAY, EXPE, ILMN, MICC, CHKP, TUP, VECO, ACN, GLW, NYX, V, ISRG, EXPD, FFIV, ILMN, SINA, ARUN, GMCR, MCP, VMW, BIDU, ESRX, A, AMD, ATI, CAT, CIEN, CSTR, DHR, DLR, DOW, GES, TIF, UNP, URE, WDC, WYNN, CTXS, BBBY, DTVSPX

Bull Flag Setups – F, SMH, SNDK, SWKS, SWN, UNG, ALTR, LLTC, QCOM, PCLN, CELG


Resistance: 1,344, 1,352, 1,367
Support: 1,330, 1321

The short term 3 day trend is neutral.
The six-month trend is up.
The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

AAPL -2.22 – black spinning top
AMZN +0.44 – white spinning top
BIDU -3.34 – black candle
GOOG -7.21 – black spinning top
NFLX +3.04 – white spinning top
PCLN -7.51 – black candle
QCOM -0.32 – black spinning top

NDX 100 stocks stronger than the NDX include TEVA, DELL, ADBE, ROST, INTC, NFLX, AMGN, ORLY, APOL, WCRX, NVDA, AMZN, CERN, VMED and ADSK.

Stocks weaker than the NDX include YHOO, JOYG, FSLR, MYL, CTRP, RIMM, BIDU, LINTA, AKAM, MU, LRCX, MICC, QGEN, CTXS and EBAY.

Stocks to Watch on Thursday
Holding Above 30 DMA
HUM, HLF, CSTR, DHR, A, ANF, DLR, TIF, V, NYX, CIEN, VMW, URE, ATI, TLT, DOW, MHS, AMD, GES, NVDA, SMH, JDSU, UNP, SWN, VECO, HAS, UAL, GMCR, CF, ACN, GLW, RVBD, ESI, FWLT, ZION
Moving Above 30 DMA = 3
CMG, FAZ, ICE
Moving Below 30 DMA = 10
CAT, CRM, IL, NDAQ, SNDK, STI, SWK, SWKS, VLO, WDC
Staying Below 30 DMA
ARUN, MCP, SINA, WLT, F, FAS, LVS, SOHU, UNG, UCO, DE, NETL, PCX, AGU, AKS, ATW, FCX, IPI, LDK, SLB, TSL, CLF, DECK, CHL, NTES, POT, JEC, JNPR, SLW, IAG, GS, CDE, TBT, MOS, X, CAM, BAC, CRUS

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

Futures Point to a Flat to Slightly Lower Open...

BMO – ES -0.50 and NQ -1.75 futures are flat to slightly lower about 20 minutes before the open in pre-market trading and point to a flat to lower open… volume is light for pre-market with a similar number of stocks quoting up and down…Financial stocks, XLF is quoting down 1 cent on 3,600 volume in pre-market…

TLT is down 7 cents and the Euro is down 70 pips in premarket trading…

NDX leaders AAPL, AMZN, BIDU, GOOG, and QCOM are quoting down in pre-market trading…NFLX is higher and PCLN is flat…

Dave’s Insight for Wednesday: Stay with the current bull flag support bounce…Look for potential short term exits as price nears old resistance…Continue to follow your rules…Stay with the trend… Continue to watch XLF for support of the SPX bounce…Manage your trades based on the price action you see on the charts…

SPX
Resistance: 1,352, 1,367, 1,384
Support: 1,344, 1,330, 1321

Quoting Down – IL, MCP, FCX, CHL, UCO, CRM, SLW, CLF, VLO, CF, URE, SOHU, NYX, ACN, SLB, MOS, GOOG, CTXS, BMC, INFY, LRCX, EBAY, AMZN, JOYG, VMED

Quoting Up – NFLX, ISRG,NTAP, SINA, CMG, LVS, UAL, PCX, SRCL, ADBE, WFMI, PCAR, MICC