A Break Above the High of the Low Day on Wednesday?

BMO- About an hour before the open the SPX +9 and the Nasdaq +14 are pointing to a higher open. Combined with Tuesday's narrow trading range, the bounce the mid-morning bounce that faded, the falling VIX, the rising SOX and the increase in the number of advancing issues suggest that Wednesday has the potential to reverse momentum to the upside. The SPX, DJIA and RUT are all below November support which is now a potential resistance area and the R1 mid-section and R2 open of Monday's large black candle represent short-term resistance. The Nasdaq which is still above its November support low has an upper shadow R3 on Monday's candle which also is part of its short-term resistance. Tuesday is the low day in all of these indices so watch for a break above the high of the low day that could lead to a short-term support bounce. Relatively stronger stocks like BIDU, PCLN, GOOG, POT, MOS, CF, AGU, IPI, QQQQ and semiconductor stocks could provide potential opportunity on Wednesday.