Yellow Alert Turns Red...As Stocks Move Lower

DJIA - 186.29, -2.34% SP500 - 19.93, -2.39% NASDAQ Comp. - 45.10, -2.81% Russell 2000 - 15.86, -3.54% Exchange NYSE NASD Advancing 802 675 Declining 2,839 2,058 Oil $49.15 -$1.90 Gold $882.20 +$10.70 SOX 235.90 -9.48 VIX 40.39 -0.54 The VIX moved down and did NOT confirm the move down in the SPX on Tuesday. Strongest Sectors: XLU -0.46%...XLV -1.12%...XLP -1.83% Weakest Sectors: XLB -3.42%...XLE -2.99%...XLF -2.97% Financial stocks stronger than XLF, -2.97%, include: ICE, C, MS, GS, AXP, AOC, ALL, BAC, TRV, CB, CME, AFL, WFC and STT. Leading tech stocks stronger than XLK, -2.78: MSFT, SYMC, TXN, ADBE, HPQ, INTC, GOOG, ADP, and IBM. Sector Watch Up Trending: Sideways: XLE, XLY, XLV, XLK, XLB Down Trending: XLF, XLP, XLI, XLU Beginning Wednesday April 8 Dave will host Virtual Coaching Options at 11 am to 1 pm ET live during market hours...Bring your market quesitons Yellow Alert started Friday and continued Monday and on Tuesday the selloff began that pushed many stocks below the low of the high day or confirmed short term bearish candle patterns that were on the chart. If you were watching closely today our At the Open list you had the opportunity to take advantage of some stocks that moved nicely today. Check our review and charts below. Once again DJIA volume was light at 276 million shares but with prices falling the tug of war...arm wrestle was won by the sellers. On Tuesday only 16 of the NDX 100 stocks traded above average volume. BIIB volume was +163% above average as the stock moved up 4.96%. 43 of the NDX 100 stocks had volume of 30% to 64% below average. Another light day of trading. Index Commentary The DJIA black candle confirmed Monday’s hanging man with a close below the hanging man body…closed above its 20, 30 and 50 DMA…volume was a below average 276 million The SPX black candle confirmed Monday’s hanging man/bearish harami candle pattern…fell below Thursday’s S1 level to the S2 level…closed above its 20, 30 and 50 DMA The Nasdaq black candle confirmed Monday’s hanging man…made a lower higher and lower low…Tuesday’s low fell into Thursday’s gap up…closed above its 20, 30 and 50 DMA The RUT black candle confirmed Monday’s hanging man like candle…broke through Thursday’s S1 and S2 levels…made a lower high and lower low…closed above its 20, 30 and 50 DMA At the Open on Wednesday SPY – closed WYNN – followed tombstone doji with a 14% down move X –followed bearish harami with a 7% move down URE – followed bearish harami with a 14% move down NOC – bearish harami close at S1 of Monday’s candle COV – followed spinning with bullish engulfing not an evening star CELG – bear flag broke the low of the high day SNDA – shooting star at lower price target area DECK – doji higher low and higher high at target 1 BIIB – bullish engulfing CTSH – spinning top at low of the high day EBAY – confirmed bearish harami SCHN – doji confirm bearish harami/pennant FCX – shooting star at horizontal resistance BRCM – confirmed hanging man LEAP – spinning top at 200 DMA…low day SHLD – confirmed bearish harami bull flag Review of At the Open on Tuesday SPY – closed below the low of the high day WYNN – evening star formed after tombstone doji with a 14% down move X – confirmed bearish harami with a 7% move down URE – followed bearish harami with a 14% move down NOC – bearish harami closed at S1 of Monday’s large white candle COV – followed spinning top with bullish engulfing not a morning star CELG – bear flag broke the low of the high day (click image to enlarge) (click image to enlarge) (click image to enlarge) (click image to enlarge) Stocks to Watch on Wednesday Leading Stocks from List Below Stocks that bounced: BIIB, DLTR, WCG, ALGT, ICE, GME Near 30 DMA: AMX, AXYS, BDX, CHL, CLB, ESRX, EZPW, HANS, MCD, MUR, MYGN, PETS, PWR, RBN, RCI, SLGN, SWN, FAS, URE Holding Above 30 DMA BIDU, CLB, BKC, NFLX, DLTR, HANS, ICE, ALGT, DLB, JEC, PWR, VPRT, AMZN, USD, AAPL, CTSH, FLS, JOYG, APEI, AXYS, BAP, CAM, GMCR, GPRO, JCOM, JOSB, MUR, PETS, WMT, ATW, GR, BIIB, SLGN, SWN, SYNA, SNHY, EBAY, GES, SNA, ORCL, WRC, DECK, HDB, PCP, UYG, FSLR, GME, WCG, RIMM, X, BDX, BYI, CBST, EZPW, HLF, MYGN, MCD, AMX, MHS, WAB, FAS, AFAM, CHL, JW.A, K, MOS, NTLS, RBN, RCI, ESRX, PCLN, URE, GILD, AMED, VAR Moving Above 30 DMA = 0 Moving Below 30 DMA = 8 BLUD, DV, ESI, GXDX, PCR, PPD, STRA, TDG Staying Below 30 DMA CPLA, MON, NIHD, SPWRA, ACN, PSYS Intermediate Term Market Trend: Neutral Short Term Market Trend: Down