Bearish Harami Confirmed

DJIA - 254.16, -3.27% SP500 - 28.41, -3.48% NASDAQ Comp. - 43.40, -2.81% Russell 2000 - 13.03, -3.04% Exchange NYSE NASD Advancing 513 650 Declining 3,276 2,098 Oil $48.41 -$3.97 Gold $915.50 -$7.70 SOX 229.45 -10.62 VIX 45.54 +4.50 The VIX moved up and did confirm the move down in the SPX on Friday. Strongest Sectors: XLV -0.58%...XLU -1.98%...XLP -2.17% Weakest Sectors: XLF -8.64%...XLI -4.98%...XLY -2.99% Sector Watch Up Trending: Sideways: XLE, XLY, XLV, XLK, XLB Down Trendin: XLF, XLP, XLI, XLU Stocks moved lower on Monday confirming Friday's bearish harami. Generally stocks moved lower on below average volume which is generally a bullish indication. There was a late rally that trimmed the loss for the day. ES and NQ futures are trading higher in over night trading. Selling appeared to be driven by the surprise that the government was asking the GM CEO to step. This type of news generally has a short lived impact. Be alert on Tuesday to see if Monday's late buying carries over to Tuesday morning. If up trending stocks break the high of the low day, which is Monday, this would be an entry signal for some short term traders. NQ futures reached the intraday triple bottom price target and a late horizontal breakout during after-markte trading. Again showing that pattern targets have value for the technical trader. (click on image to enlarge)

Index Commentary The DJIA confirmed Friday’s bearish harami closed below 50 DMA…above 20 and 30 DMA The SPX confirmed Friday’s bearish harami closed just below 50 DMA…above 20 and 30 DMA The Nasdaq broke through the low of the high day and moved lower…closed above 20, 30 and 50 DMA The RUT confirmed Friday’s bearish harami…closed below 50 DMA…above 20 and 30 DMA At the Open on Tuesday SPY – lower high, lower low SNDA – hammer DECK – hammer UNP – confirmed bearish harami CTSH – hammer X – lower high, lower low at 30 DMA DLB – confirmed bearish harami CRM – lower high, lower low NFLX – bullish engulfing GME – harami ISRG – broke bearish pennant down WYNN – lower high, lower closed below 20 DMA ILMN – dragon fly doji

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(click on image to enlarge)

Stocks to Watch on Tuesday Leading Stocks: Holding Above 30 DMA BIDU, CLB, BKC, NFLX, DLTR, HANS, ICE, ALGT, DLB, JEC, PWR, VPRT, AMZN, MON, AAPL, CTSH, FLS, JOYG, APEI, AXYS, BAP, CAM, GMCR, GPRO, JCOM, JOSB, MUR, PETS, WMT, ATW, GR, BIIB, SLGN, SWN, SYNA, SNHY, EBAY, GES, RCI, SNA, ORCL, WRC, DECK, HDB, MOS, PCP, UYG, BLUD, FSLR, GME, ESI, WCG, RIMM, X, BDX, BYI, CBST, EZPW, HLF, MYGN, STRA, MCD Moving Above 30 DMA = 0 DV Moving Below 30 DMA = 8 AMX, CHL, JW.A, NTLS, PCLN, WAB, NIHD, FAS Staying Below 30 DMA ACN, PPD. RBN, ESRX, PSYS, GILD, MHS, TDG, SPWRA, AMED, GXDX, VAR, PCR, K, AFAM Monday’s Action Moving Up: ESRX Hammer - STRA Moving Down: Eve Star - JASO Confirmed Friday’s Harami – CLF, KMT, COH, LAMR, BRCM, POT, MOS, SCHN, GRMN, Outside Day – NEM, GG, AEM Lower High, Lower Low – BIDU, ADM, GOLD, GDX, HANS, CF, IPI, CNX, KRE, GS, X, AGU, ANR, NDAQ, KBE, MEE Doji – PCLN, DRYS, GLD Hammer – AFAM, FSLR, BTU, FWLT