Downward Momentum Slows on Tuesday...Bullish Harami Day?

DJIA - 37.27, -0.55% SP500 - 4.49, -0.64% NASDAQ Comp. - 1.84, -0.14% Russell 2000 - 6.79, -1.85% Exchange NYSE NASD Advancing 1,309 1,004 Declining 2,536 1,706 Oil $41.65 +$1.50 Gold $912.90 -$26.10 SOX 191.49 +2.52 VIX 50.93 -1.72 The VIX moved down not confirming the move down in the SPX on Tuesday. Strongest Sectors: XLE +0.50%...XLB +0.39%...XLU -0.23% Weakest Sectors: XLU -3.58%...XLF -1.97%...XLP -1.20% Sector Watch Up Trending: Sideways: XLE, XLU, XLY, XLV, XLK Down Trending: XLF, XLP, XLI, XLB Downward momentum in stocks slowed dramatically on Tuesday. The indices bounced mid-morning to mid-day and then moved down and then a late rally brought the indices to just below break even. Many of the stocks we discuss in our Stock Commentary section formed a bullish harami today. The positives include a VIX that fell on a down day along with the SOX Semiconductor Index rising on a down day. Both indicate that buyers might be willing to reenter the market at these support levels. SP500 E-mini futures sold off about 15 points immediately after the cash markets closed have rallied back almost 15 points to the level when the cash markets closed. Once again Wednesday will be interesting trading as we see if buyers follow through and reverse slowing downward momentum to buying momentum or if price action resumes downward momentum. The number of advancing issues on Tuesday increased by about four times from Monday on both the NYSE and Nasdaq. ALTR, MRVL, NSM and XLNX rose moderately on Tuesday. AMZN is holding in a horizontal pattern. BIDU formed a bullish harami in a bull flag bounce. PCLN formed a higher low and higher high in a bull flag as it closed cents lower that Monday’s doji. Dave taught over 300 people in the first day of the AT Workshop Tuesday. Dave focused on the importance of applying Trend, Support and Resistance, Momentum, Candlestick analysis, identifying price targets from support and resistance and using Fibonacci Retracements to identify hidden levels of support and resistance and as entry signals. Index Commentary The SPX formed a spinning top. The DJIA formed a spinning top. The Nasdaq formed a spinning top as it remained above its November support low. The RUT formed a black candle as it closed below its November support low for the second straight day. Stock Commentary Coal stocks BTU, CNX, KOL and WLT all formed a bullish harami on Tuesday. Steel stocks NUE, SCHN, STLD and X each formed a bullish harami on Tuesday. Rail stocks BNI and CSX formed spinning tops and UNP formed a bullish harami. Ag-related stocks POT, MOS, CF, AGU and IPI each formed a bullish harami on Tuesday. Stocks to Watch on Wednesday Leading Stocks: Holding Above 30 DMA VPRT, AMZN, BIDU, CLB, PCLN, BKC Moving Above 30 DMA = 3 GMCR, MOS, NFLX Moving Below 30 DMA = 1 DLTR Staying Below 30 DMA GME, JCOM, SLGN, WRC, DLB, FLS, ICE, MYGN, CPLA, ESRX, GES, PSYS, CHL, DECK, GIL, MHS, TDG, SPWRA, AMED, APEI, BIIB, GPRO, GXDX, HANS, MON, PCP, RBN, AAPL, CTSH, DV, ESI, VAR, SYNA, WCG, ATW, BLUD, JW.A, MUR, ORCL, RCI, SWN, GR, FSLR, HLF, EBAY, AMX, STRA, PCR, PWR, RIMM, BDX, BYI, CAM, PPD, ACN, NIHD, SNHY, JOYG, K, JOSB, JEC, PETS, NTLS, BAP, HDB, CBST, SNA, AFAM, EZPW, WAB, ALGT, AXYS Tuesday’s Action (=> +0.70 or -0.70) Moving Up: FSLR, CF, AGU, MOS, POT, AEM, GG, NUE, BTU, SCHN, ESRX, CNX, HANS, NEM, CLF Moving Down: GS, STRA, NDAQ, SOHUM SINA, AFAM, KRE Intermediate Term Market Trend: Neutral – Nasdaq; Down – DJIA, SPX, RUT Short Term Market Trend: Down