SPX Closes Below S1...Bearish Harami Wednesday...

DJIA - 173.47, -2.05% SP500 - 17.27, -1.90% NASDAQ Comp. - 19.35, -1.11% Russell 2000 - 10.45, -2.09% Exchange NYSE NASD Advancing 868 957 Declining 2,119 1,787 Oil $61.45 +$1.00 Gold $953.30 -$0.00 SOX 263.94 +4.12 VIX 32.36 +1.74 The VIX moved up and did confirm the move down in the SPX on Wednesday. Strongest Sectors: XLK -0.98%...XLV -1.02%...XLE -1.09% Weakest Sectors: XLB -3.75%...XLI -3.25%...XLF -2.99% All nine sectors moved lower on Wednesday. Technology, Healthcare and Energy were stronger than the SPX -1.90%. Financial stocks weaker than XLF -2.99%: KEY, AFL, WFC, TRV, SCHW, TROW, ALL, USB, IVZ, JPM, PNC, ZION, BK, AXP, CB, MET and AOC. Leading tech stocks stronger than XLK -0.98% include: SYMC, AAPL, AMAT, EMC, AMT, GOOG, ADP, TXN, INTC, DELL, HPQ, ORCL and MA. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK Sideways: XLE, XLV, XLF, XLP, XLI, XLY Down Trending: XLU SPX Key resistance levels: 902 = Weekly R1 924 = horizontal 935 = 200 DMA Key support levels: 899 = Tuesday’s S1 891 = 38.2% Fib level 875 = horizontal 866 = 61.8% Fib level Tuesday thrust, Wednesday pause pull back…have we seen this pattern before? After spending most of Wednesday near breakeven the market sold off during the last two hours of the trading day. The sell off is being attributing to rising government bond yields. The SPX fell back to its 891 Fib support level after breaking thorough short term resistance at 902 on Tuesday. This is a trading range market in which a trader has to find the leading stocks for long positions. Watch key support levels on Thursday. Tom Sosnoff and Dave have both been suggesting TBT as a way to take advantage of rising interest rates for several months now. (click image to enlarge) Gold prices moved lower on Wednesday as did gold stocks AEM, NEM, GOLD, GDX, GLD and GG. While Steel stocks X and STLD rose on Wednesday, they sold off at horizontal resistance as did SCHN and AKS. ATI already in a short term down trend fell to horizontal support. Over the past three weeks the SPX has flattened out below its 200 DMA in sideways trading range, short term traders are again on Yellow Alert as today was again a high day. Index Commentary – Yellow Alert The DJIA formed a large black candle that closed below Tuesday’s S1 and 20 DMA … three month chart target 10,340…volume was 286 million shares…closed above its 30 and 50 DMA. The SPX formed a black candle that closed below its 20 DMA and just below Tuesday’s S1 level…3 month chart target of 1,075…closed above its 30 and 50 DMA. The Nasdaq formed a bearish harami…3 month chart target of 2,065…closed above its 20, 30 50 and 200 DMA. The RUT formed a bearish harami that closed above Tuesday’s S1 and below its 20 DMA bullish engulfing pattern….3 month chart target 606…closed above its 30 and 50 DMA At the Open on Wednesday SPY – dark cloud cover KOL – tombstone doji SHLD – shooting star bearish harami ADBE – bearish harami STLD – shooting star like at horizontal resistance CTV – spinning top EBAY – black candle EL – bearish harami JOYG – shooting star at horizontal resistance USD – black spinning top JNPR – shooting star doji SCHN – bearish harami STT – bearish harami FAS – dark cloud cover URE – black spinning top ZION – black spinning top OSG – inverted hammer LEAP – shooting star new high close WAB – black spinning top Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, VPRT, CTSH, BAP, CAM, GMCR, ATW, GR, EBAY, TRLG, FSLR, HDB, PCP, RIMM, WCG, UYG, HLF, AMX, MHS, K, PCLN, VAR, PCR, PPD, SWN, FLS, TDG, NIHD, RCI, ACN, JOYG, MUR, PSYS, CHL, MOS, DV, AXYS, BIIB, BYI, CPLA, SPWRA, SYNA, X, MCD, BDX, CBST, AAPL, AFAM, DLTR, ESRX, GES, GXDX, ORCL, RBN, USD, WRC Moving Above 30 DMA = 0 Moving Below 30 DMA = 10 APEI, DLB, ESI, FAS, HANS, JOSB, SNA, STRA, URE, WMT Staying Below 30 DMA MON, WAB, NTLS, AMED, PETS, SNHY, AMZN, EZPW, JW.A, JEC, PWR, DECK, ALGT, JCOM, NFLX, GME, GILD, GPRO, MYGN, SLGN, BKC, BLUD Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral