Spinning Top Tuesday...

DJIA - 8.05, -0.10% SP500 - 2.35, -0.27% NASDAQ Comp. - 5.60, -0.33% Russell 2000 + 3.31, +0.70% Exchange NYSE NASD Advancing 1,863 1,569 Declining 1,804 1,145 Oil $49.22 -$0.22 Gold $892.80 -$14.70 SOX 246.67 -4.13 VIX 37.95 -0.97 The VIX moved down and did NOT confirm the move down in the SPX on Tuesday. Strongest Sectors: XLP +0.46%...XLU +0.39%...XLP +0.37% Weakest Sectors: XLF -3.09%...XLI -1.18%...XLB -0.53% Four of nine Sectors; Healthcare, Utilities, Consumer Staples and Technology outperformed the SPX. Financial stocks stronger than XLF -3.07% include: SPG, TRV, ALL, JPM, GS, AXP, CB, MS, MMC, SCHW, KEY, AFL, CME, AOC, PNC, MET, USB, UVZ, PRU, BK and ETF UYG. Leading tech stocks stronger than XLK, -0.06% include: IBM, EMC, CSCO, BZ, T, MA, SYMC and ADP. Sector Watch Up Trending: Sideways: XLE, XLY, XLV, XLK, XLB Down Trending: XLF, XLP, XLI, XLU I was surprised to read this mornings' headline "Futures Point to a Lover Open..." and delighted as it gave me an endorphin rush. I'm not sure if the headline or the fact that no one posted any comments about the headline was more surprising. Did everyone read this and their brain automatically replace the word "Lover" with "Lower" and no one consciously noticed it? Or did everyone get as good a laugh as I did? Tuesday’s spinning tops just barely confirmed Monday’s bearish harami on the DJIA and SPX. Both the Nasdaq and RUT candles did NOT confirm Monday’s bearish patterns. In fact the RUT was up on Tuesday. Since lower highs and lower lows were made on Tuesday and only two of the indices confirmed Monday’s bearish pattern, Wednesday is still a Yellow Alert for short term traders. Tuesday is a low day and could also be the low of this short term pull back. With the price action Thursday and Friday moving up and Monday and Tuesday being pause days, in the context of the pattern of one to two day up days and one to two pause days since March 10, the potential exits for Wednesday to resume the move to the upside. If the indices move up on Wednesday this would be from Tuesday’s higher low compared with April 21, which could provide the support base for the SPX to break above the 875 resistance and the Nasdaq to resume its move to its chart target of 1,765. Adding weight to this potential is the below average volume on the DJIA the past two days...both the price action and volume suggest not a lot of aggressive sellers at this level and the buyers may have just being providing the pause that refreshes. We’ll be watching closely on Wednesday to see if the pause or pullback continues another day or the trend up resumes. Stay tuned…. Index Commentary The DJIA formed a spinning top that confirmed Monday’s bearish harami l…volume was below average at 274 million shares…closed above its 20, 30 and 50 DMA. The SPX formed a white spinning top that confirmed Monday’s bearish harami and inside day…closed above its 20, 30 and 50 DMA. The Nasdaq formed a spinning top that did NOT confirm Monday’s shooting star and bearish harami…closed just below horizontal resistance of 1682…short term chart price target is 1,765…closed above its 20, 30 and 50 DMA. The RUT formed a piercing line pattern that did NOT confirm Monday’s bearish harami…closed above its 20, 30 and 50 DMA Can you identify the support bounce in each of these stocks from At the Open on Tuesday list? (click image to enlarge) At the Open on Wednesday SPY – spinning top ALGT – bull flag support bounce at 30 DMA SCHN – white spinning top at 200 DMA ICE – inverted hammer at 20 DMA DECK – close above support of 30 DMA SNDA – spinning top at 20 DMA ADBE – doji at Friday’s S1 EBAY – inside day inverted hammer at 200 DMA GME – spinning top close below 200 DMA SHLD – doji at 200 DMA ADS – spinning top AG – confirm bearish harami…support bounce at 20 DMA LEAP – inside day potential bearish harami after two day bounce ISRG – confirm bearish harami…close above Friday’s S2 DHR – spinning top in two day bull flag…potential low day XLNX – inside day Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, ALGT, DLB, PWR, VPRT, AMZN, USD, AAPL, CTSH, AXYS, BAP, CAM, GMCR, JCOM, JOSB, ATW, GR, SYNA, EBAY, GES, SNA, ORCL, WRC, DECK, HDB, PCP, UYG, FSLR, GME, WCG, RIMM, X, BYI, CBST, HLF, AMX, MHS, WAB, FAS, AFAM, JW.A, K, RBN, ESRX, PCLN, URE, VAR, PCR, PPD, HANS, SWN, FLS, SNHY, GILD, GXDX, TDG, NIHD, RCI, STRA, CPLA, ACN, AMED, DLTR, GPRO, NFLX Moving Above 30 DMA = 0 Moving Below 30 DMA = 2 JEC, JOYG Staying Below 30 DMA CHL, EZPW, SPWRA, MCD, BDX, PETS, CBST, MYGN, DV, MUR, SLGN, TDG, BIIB, MOS, NTLS, MON, WMT, GILD, BKC, APEI, BLUD, ESI, GXDX, PSYS Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral