Bearish Candles Form as Decliners Lead Advancers...

DJIA - 82.38, -0.97% SP500 - 7.91, -0.85% NASDAQ Comp. - 9.02, -0.49% Russell 2000 - 2.33, -0.46% Exchange NYSE NASD Advancing 1,280 1,190 Declining 1,688 1,536 Oil $69.89 -$1.60 Gold $927.10 -$13.30 SOX 263.15 +0.23 VIX 26.35 +1.00 The VIX moved up and did confirm the move down in the SPX on Tuesday. Strongest Sectors: XLE -0.60%...XLY -0.73%...XLU -0.75% Weakest Sectors: XLI -1.04%...XLF -0.99%...XLB -0.96% All nine sectors moved lower on Tuesday. Energy, Consumer Discretionary, Utilities, Technology, Consumer Staples and Healthcare were stronger than the SPX -0.85%. Financial stocks stronger than XLF -0.99%: IVZ, AOC, BAC, TRV, SPG, MET, TROW, NTRS, CB, RF and ALL. Tech stocks stronger than XLK -0.76%: HPQ,INTC, ADP, AAPL, TXN, AMAT, ORCL, MSFT, MA, SYMC and GOOG. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY Sideways: XLE, XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 920 = horizontal end of May high 910 = Thursday’s S1 902 = 50 DMA 894 = 200 DMA 888 = weekly low 875 = horizontal Index Commentary – Yellow Alert The DJIA moved formed a dark cloud cover outside day…closed above Monday’s low…Tuesday is the high day…closed below 200 DMA…three month chart target 10,340…volume was an average 233 million shares…closed above its 50 DMA. The SPX formed a bearish engulfing outside day…closed above Monday’s low…broke below its 20 and 30 DMA…Tuesday is the high day…3 month chart target of 1,075…closed above its 50 and 200 DMA. The Nasdaq formed a bearish engulfing outside day….closed above Monday’s low…Tuesday is the high day…3 month chart target of 2,065…closed above its 20, 30, 50 and 200 DMA. The RUT formed a black spinning top…closed above Friday’s low which is the high day…closed at its 30DMA…3 month chart target 606…closed above its 30, 50 and 200 DMA. At the Open on Tuesday SPY – bearish engulfing QQQQ – bearish engulfing FUQI – white spinning top +4.65% GMCR hanging man SHLD bearish harami FAS – bearish engulfing TRLG – spinning top ICE – black candle ESRX – white spinning top MUR – white spinning top JOYG – black candle breaks low of high day STT – bearish engulfing AMX – bearish harami X – black candle breaks low of high day DECK – black spinning top AMZN – bearish harami outside day AAPL – doji PCLN – black candle breaks low of high day BIDU – bearish harami GES – black spinning top DLB – hanging man SYNA – hanging man NFLX – hanging man Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA BIDU, VPRT, K, DV, CPLA, SYNA, X, BDX, AAPL, GXDX, ORCL, DECK, CPLA, MYGN, DV, STRA, GILD, JW.A, ACN, APEI, PSYS, ESRX, NFLX, BYI, MHS, NTLS, BKC, CBST, HDB, ICE, PCLN, SLGN, USD, AMED, AMX, CHL, CTSH, GES, HLF, JCOM, PPD, WRC, PETS, GMCR, PWR, TRLG Moving Above 30 DMA = 2 ALGT, ESI Moving Below 30 DMA = 9 BAP, GPRO, JEC, WCG, GR, NIHD, SNHY, JOYG, UYG Staying Below 30 DMA BLUD, RBN, FAZ, AFAM, AMZN, ATW, BIIB, FLS, VAR, MCD, PCP, SWN, MUR, RIMM, SPWRA, CAM, CLB, MOS, EBAY, FAS, MON, RCI, SNA, TDG, URE, DLTR, EZPW, WAB, FSLR, WMT, DLB, JOSB, HANS, GME Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral

Futures Pointing to a Flat Opening...

BMO - ES +2 and NQ + 3 are slightly higher in pre-market trading pointing to a flat to slightly higher open. Friday is a holiday, so there are just three trading days left this week. The SPX is near its May high 930 resistance area...if it breaks through it could rise to its June high of 950. If it does not be prepared for a move down from resistance towards support. Stay with the short term up trend as long as it continues...Keep your attention focused if the charts roll over and begin to move down...

Look at these Charts....

(click image to enlarge)

At the Open on Tuesday SPY – white spinning top +0.94% QQQQ – doji +0.08% FUQI – white candle break resistance +16.82% GMCR – white spinning top +4.42% SHLD white candle +4.27% FAS – white spinning top +3.47% TRLG – white spinning top +2.27% ICE – white spinning top +2.02% ESRX – hanging man +1.19% MUR – doji +1.62% JOYG – shooting star +0.68% STT – white candle at horizontal resistance +0.37% AMX – white spinning top continuation +0.88% X – black spinning top +0.27% DECK – bearish engulfing AMZN – bearish harami AAPL – black spinning top PCLN – black spinning top BIDU – black spinning top GES – doji DLB – below 30 DMA SYNA – hanging man NFLX – spinning top

Indices Move Higher...

DJIA + 90.99, +1.08% SP500 + 8.33, +0.91% NASDAQ Comp. + 5.84, +0.32% Russell 2000 - 2.61, -0.51% Exchange NYSE NASD Advancing 1,843 1,215 Declining 1,165 1,495 Oil $71.49 +$2.33 Gold $940.40 -$0.30 SOX 262.92 -0.13 VIX 25.35 -0.58 The VIX moved down and did confirm the move up in the SPX on Monday. This is a new low since September 12. Strongest Sectors: XLU +1.30%...XLY +1.26%...XLF +1.26% Weakest Sectors: XLV +0.61%...XLP +0.61%...XLB +0.89% All nine sectors moved higher on Monday. Utilities, Consumer Discretionary, Financials, Technology, Industrials and Energy were stronger than the SPX +0.91%. Financial stocks stronger than XLF +1.26%: BAC, RF, ZION, PRU, WFC, KEY, ICE, NTRS, AOC, ALL, GS, MS, CB and ETFs UYG and FAS. Tech stocks stronger than XLK +1.05%: HPQ, ADBE, MSFT, ADP, T, DELL, AMAT, ORCL, VZ and AMAT. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 920 = horizontal end of May high 910 = Thursday’s S1 902 = 50 DMA 894 = 200 DMA 888 = weekly low 875 = horizontal There was an interesting mix of technical action on Monday. The DJIA and SPX down on Friday were the strongest indexes today. The Nasdaq was weak and the RUT negative. The weaker Nasdaq was influenced by weakness in AAPL, BIDU, GOOG, AMZN, RIMM, FSLR and BIIB. Positives: DJIA and SPX move higher VIX moves to new low All nine sectors move higher Strong NYSE Advancing Stocks Negatives: SOX fails to confirm Weak Nasdaq RUT moves down, lower high, lower low Weak Nasdaq Advancing Stocks Nasdaq leaders lag Bottom Line: Monday was another high day for the DJIA, SPX and Nasdaq…watch for a potential break of the high of the low day…stay with up trending positions as long as they continue to up trend. Index Commentary – Yellow Alert The DJIA moved formed a large white candle did not confirm bearish harami…broke above 200 DMA…moved just under 30 DMA…three month chart target 10,340…volume was an average 216 million shares…closed above its 50 and 200 DMA. The SPX formed a white candle…broke above its 20 DMA…Monday is the high day…3 month chart target of 1,075…closed above its 20, 30, 50 and 200 DMA. The Nasdaq formed a hanging man that is a short term high…3 month chart target of 2,065…closed above its 20, 30, 50 and 200 DMA. The RUT formed a hanging man bearish harami…formed a lower high and lower low…3 month chart target 606…closed above its 30, 50 and 200 DMA. At the Open on Monday SPY – white spinning top +0.94% QQQQ – doji +0.08% FUQI – white candle break resistance +16.82% GMCR – white spinning top +4.42% SHLD white candle +4.27% FAS – white spinning top +3.47% TRLG – white spinning top +2.27% ICE – white spinning top +2.02% ESRX – hanging man +1.19% MUR – doji +1.62% JOYG – shooting star +0.68% STT – white candle at horizontal resistance +0.37% AMX – white spinning top continuation +0.88% X – black spinning top +0.27% DECK – bearish engulfing AMZN – bearish harami AAPL – black spinning top PCLN – black spinning top SPG – black spinning top QCOM – white spinning top MRVL – black spinning top SNHY – hanging man BIDU – black spinning top Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA BIDU, VPRT, BAP, GR, K, DV, CPLA, SYNA, X, BDX, AAPL, GXDX, ORCL, DECK, CPLA, MYGN, DV, STRA, GILD, JW.A, ACN, APEI, PSYS, ESRX, NFLX, BYI, JOYG, MHS, NTLS, BKC, CBST, HDB, ICE, PCLN, SLGN, USD, AMED, AMX, CHL, CTSH, GES, GPRO, HLF, JCOM, PPD, WRC, NIHD, BAP, PETS, WCG, SNHY Moving Above 30 DMA = 5 GMCR, JEC, PWR, UYG, TRLG Moving Below 30 DMA = 1 ESI Staying Below 30 DMA BLUD, RBN, FAZ, AFAM, AMZN, ATW, BIIB, FLS, VAR, MCD, PCP, SWN, MUR, RIMM, SPWRA, CAM, CLB, MOS, EBAY, FAS, MON, RCI, SNA, TDG, URE, DLTR, EZPW, WAB, FSLR, WMT, DLB, JOSB, HANS, ALGT, GME Intermediate Term Market Trend: Neutral Short Term Market Trend: Up

Futures Poinitng to a Slightly Higher Open...

10:21 am ET - The SPX is trading in a narrow six point range during the first 50 minutes of trading and is currently breaking out of Friday's high...so far today the SPX has made a higher low and now a slightly higher high...FUQI is on the move up +2.20 BMO - ES +3 and NQ +3 are slightly higher in pre-market trading pointing to a slightly higher open. The positives on Friday were a strong Nasdaq and a lower VIX. However the SPX did not move to the upside and the SOX was weak. Remember Friday was a high day with a narrow 9 point range on the SPX. Watch both Friday's high and low and go with today's trading direction...the existing short term move is up...but we will be tuned in for a possible short term reversal. Look at these charts... (click image to enlarge) At the Open on Monday SPY – doji -0.26% QQQQ – white spinning top +0.22% FUQI – above 20 DMA =7.22% DECK – white candle horizontal breakout +2.78% X – white candle continuation +2.64% AMX – large white candle continuation +2.06% AMZN – white candle continuation +2.04% ICE – white candle continuation +1.98% FAS – white candle continuation +1.92% AAPL – white candle +1.84% STT – white candle at horizontal resistance +1.79% PCLN – white spinning top +1.05% SPG – white spinning top +0.76% QCOM – bearish harami at horizontal resistance -0.32% JOYG – hanging man -0.46% MUR – bearish harami -0.96% SHLD – black spinning top -0.98% ESRX – bearish harami -1.18% GMCR – shooting star +-1.41% MRVL – bearish harami -1.67% TRLG - large white candle +7.42% SNHY - large white candle +3.74% BIDU - white candle +2.74%

Trading Range at Resistance...

DJIA - 34.01, -0.40% SP500 - 1.36, -0.15% NASDAQ Comp. + 8.68, +0.47% Russell 2000 + 4.04, +0.79% Exchange NYSE NASD Advancing 1,821 1,743 Declining 1,172 956 Oil $69.16 -$1.07 Gold $940.70 +$1.70 SOX 263.05 -0.21 VIX 25.93 -1.63 The VIX moved down and did not confirm the move down in the SPX on Friday. This is the lowest close on the VIX since September 12, 2008. Strongest Sectors: XLF +0.51%...XLV +0.00%...XLB -0.15% Weakest Sectors: XLY -0.69%...XLE -0.66%...XLI -0.41% Only one of nine sectors moved higher on Friday. Financials and Healtcare were stronger than the SPX -0.15%. Financial stocks stronger than XLF +0.51%: IVZ, BAC, MS, ICE, STT, GS, USB, KEY, JPM, SPG, CME and ETFs UYG and FAS. Tech stocks stronger than XLK -0.16%: MA, GOOG, AAPL, GLW, YHOO, EBAY, TXN, SYMC, ADP, DELL, EMC, T and INTC. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 920 - 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 910 = Thursday’s S1 902 = 50 DMA 894 = 200 DMA 888 = weekly low 875 = horizontal Friday is yet another mixed trading day as the indices are grinding at resistance. The SPX traded in a narrow 9 point range on Friday forming a doji following Thursday’s large white candle. Friday represents a pause in the upward momentum which could lead to a short term reversal if Friday’s low is broken. Nasdaq momentum slowed as price formed a new high in its recent short term up trend. Many individual stocks like FUQI, TRLG, GXDX, SNHY, DECK, X, BIDU, AMX and AMZN have a strong day, but the indices just lack upward momentum. The SPX, Nasdaq and RUT all made a higher highs while the DJIA made a lower high. The relative weakness in momentum makes Monday a Yellow Alert for short term trades. Positives: Nasdaq moves higher VIX moves to new low Negatives: SOX fails to confirm SPX and DJIA move down SPX, DJIA and RUT at resistance and form bearish candle patterns Bottom Line: If the indices break the low of the high day on Monday look for a move back to the support levels of the sideways trading range in place for the past two months. For the Week... (click image to enlarge) Here's a Weekly view of the past 3 months... (click image to enlarge) Index Commentary – Yellow Alert The DJIA moved formed a bearish harami…three month chart target 10,340…volume was an above average 307 million shares…closed below its 20, 30 and 200 DMA. The SPX formed a doji following Thursday’s large white candle and closed just above its 30 DMA…Friday is a high day…3 month chart target of 1,075…closed above its 30, 50 and 200 DMA. The Nasdaq formed a white candle that is a short term high…3 month chart target of 2,065…closed above its 20, 30, 50 and 200 DMA. The RUT formed a white candle that sold off slightly at its 20 DMA…3 month chart target 606…closed above its 30, 50 and 200 DMA. At the Open on Friday SPY – doji -0.26% QQQQ – white spinning top +0.22% FUQI – above 20 DMA +7.22% DECK – white candle horizontal breakout +2.78% X – white candle continuation +2.64% AMX – large white candle continuation +2.06% AMZN – white candle continuation +2.04% ICE – white candle continuation +1.98% FAS – white candle continuation +1.92% AAPL – white candle +1.84% STT – white candle at horizontal resistance +1.79% PCLN – white spinning top +1.05% SPG – white spinning top +0.76% QCOM – bearish harami at horizontal resistance -0.32% JOYG – hanging man -0.46% MUR – bearish harami -0.96% SHLD – black spinning top -0.98% ESRX – bearish harami -1.18% GMCR – shooting star -1.41% MRVL – bearish harami -1.67% Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA BIDU, VPRT, BAP, GR, K, DV, CPLA, SYNA, X, BDX, AAPL, GXDX, ORCL, DECK, CPLA, MYGN, DV, STRA, GILD, JW.A, ACN, APEI, PSYS, ESRX, NFLX, BYI, JOYG, MHS, NTLS, BKC, CBST, HDB, ICE, PCLN, SLGN, USD, AMED, AMX, CHL, CTSH, ESI, GES, GPRO, HLF, JCOM, PPD, WRC, NIHD Moving Above 30 DMA = 4 BAP, PETS, WCG, SNHY Moving Below 30 DMA = 5 BLUD, GMCR, JEC, PWR, RBN Staying Below 30 DMA FAZ, AFAM, AMZN, ATW, BIIB, FLS, VAR, MCD, PCP, SWN, MUR, RIMM, SPWRA, CAM, CLB, MOS, EBAY, FAS, MON, RCI, SNA, TDG, TRLG, URE, UYG, DLTR, EZPW, WAB, FSLR, WMT, DLB, JOSB, HANS, ALGT, GME Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral

Futures pointing to a Lower Open...

9:58 am ET - Consumer Sentiment reports at 70.8 above forecasts...stocks pull back... 9:45 am ET - ES and NQ futures start to rally afte a lower open...AAPL, AMZN, MRVL, JOYG all moving up...watch for potential catalyst up or down from Consumer Sentiment in about 10 minutes... BMO - ES -4 and NQ -8 are lower in pre-market trading pointing to a slightly lower open. Stocks rallied in the last 20 minutes before the close on Thursday and the surge was even stronger in bank stocks and materials stocks as XLF and XLB pushed to a new intra-day high near the close. Watch bank, financial and material stocks this morning to see if the surge carries over this morning. Consumer Sentiment is to be released at 9:55 am ET is forecasted at 69.7 up from 69.0 could be a catalyst for traders shortly after the open... Look at these charts... (click image to enlarge) At the Open on Friday SPY – bullish engulfing +2.18% QQQQ – bullish engulfing +1.97% FUQI – doji at 20 DMA -4.59% ESRX – horizontal breakout +2.43% DECK – bullish engulfing +5.78% AAPL – large white candle +2.67% QCOM – large white candle +2.36% SHLD – large white candle +3.12% MRVL – outside day white candle +1.95% STT – white candle continuation +2.02% PCLN – white candle continuation +3.04% ICE – hanging man +1.10% JOYG – bullish engulfing +1.21% X – bullish engulfing +2.36% FAS – bullish engulfing +5.28% SPG – bullish engulfing +1.88% GMCR – spinning top continuation +2.41% AMZN – large white candle continuation +3.70% MUR – white candle continuation +2.92% AMX – large white candle continuation +4.06%

Support Bounces Continues to Move Up...

DJIA + 172.54, +2.08% SP500 + 19.32, +2.14% NASDAQ Comp. + 37.20, +2.08% Russell 2000 + 14.23, +2.88% Exchange NYSE NASD Advancing 2,464 1,211 Declining 562 525 Oil $70.23 +$1.56 Gold $939.00 +$5.20 SOX 263.26 +5.18 VIX 26.36 -2.69 The VIX moved down and did confirm the move up in the SPX on Thursday. This is the lowest close on the VIX since September 12, 2008. Strongest Sectors: XLY +3.49%...XLI +3.08%...XLV +2.77% Weakest Sectors: XLK +1.45%...XLU +1.68%...XLP +1.72% All nine sectors moved higher on Thursday. Consumer Discretionary, Industrial, Healthcare, and Financials were stronger than the SPX +2.14%. Financial stocks stronger than XLF +2.15%: AXP, RF, AFL, WFC, ZION, BK and ETFs UYG and FAS. Tech stocks stronger than XLK +1.45%: GLW, EMC, ADBE, DELL, AAPL, HPQ, SYMC, QCOM, EBAY, CSCO, MA, IBM, TXN, ORCL, GOOG and AMAT. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 920 - 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 910 = Thursday’s S1 901 = 50 DMA 895 = 200 DMA 888 = weekly low 875 = horizontal

Downward momentum came to an end on Tuesday with the formation of a spinning top/bullish harami on the SPX. Wednesday's inverted hammer confirmed Tuesday's bullish harami as momemtum began to move up. Thursday upward momentum pushed through the R1 and R2 resistance levels of Monday's large black candle reversing 100% of Monday's drop and the SPX rose to its 920 resistance area.

Short term support is Thursday's S1 level at 910 and short term resistance is the 920-930 area.

Wednesday's support bounce stocks: GMCR, AMZN, CHL, MUR, AMX, CLB, WAB, EBAY and CTSH had strong continuation moves on Thursday. TDG and RCI paused and RIMM reversed and moved lower.

(click image to enlarge)

Index Commentary The DJIA moved formed a bullish engulfing pattern…closed above its 50 DMA…three month chart target 10,340…volume was a below average 222 million shares…closed below its 20, 30 and 200 DMA. The SPX large white candle that confirmed Wednesday’s inverted hammer…broke above its 30 and 50 DMA…3 month chart target of 1,075…closed above its 30, 50 and 200 DMA. The Nasdaq formed large white candle that confirmed its inverted hammer…broke above its 30 and 20 DMA…3 month chart target of 2,065…closed above its 20, 30, 50 and 200 DMA. The RUT formed large white candle that confirmed its inverted hammer…broke above its 50 and 30 DMA….3 month chart target 606…closed above its 30, 50 and 200 DMA. At the Open on Thursday SPY – bullish engulfing +2.18% QQQQ – bullish engulfing +1.97% FUQI – doji at 20 DMA -4.59% ESRX – horizontal breakout +2.43% DECK – bullish engulfing +5.78% AAPL – large white candle +2.67% QCOM – large white candle +2.36% SHLD – large white candle +3.12% MRVL – outside day white candle +1.95% STT – white candle continuation +2.02% PCLN – white candle continuation +3.04% ICE – hanging man +1.10% JOYG – bullish engulfing +1.21% X – bullish engulfing +2.36% FAS – bullish engulfing +5.28% SPG – bullish engulfing +1.88% GMCR – spinning top continuation +2.41% AMZN – large white candle continuation +3.70% MUR – white candle continuation +2.92% AMX – large white candle continuation +4.06% Stocks to Watch on Friday Leading Stocks Holding Above 30 DMA BIDU, VPRT, BAP, GR, K, DV, CPLA, SYNA, X, BDX, AAPL, GXDX, ORCL, DECK, CPLA, MYGN, DV, STRA, GILD, JW.A, ACN, APEI, PSYS, ESRX, NFLX, BYI, JOYG, MHS, NTLS, BKC, CBST, HDB, ICE, PCLN, RBN, SLGN, USD Moving Above 30 DMA = 16 AMED, AMX, BLUD, CHL, CTSH, ESI, GES, GMCR, GPRO, HLF, JCOM, JEC, PPD, PWR, WRC, NIHD Moving Below 30 DMA = 1 FAZ Staying Below 30 DMA AFAM, AMZN, ATW, BAP, BIIB, FLS, SNHY, VAR, MCD, PCP, SWN, MUR, RIMM, SPWRA, CAM, CLB, MOS, EBAY, FAS, MON, RCI, SNA, TDG, TRLG, URE, UYG, DLTR, EZPW, WAB, FSLR, WCG, WMT, DLB, JOSB, HANS, PETS, ALGT, GME Intermediate Term Market Trend: Neutral Short Term Market Trend: Up

Futures Pointing to a Flat Open...

BMO - ES +0.00 and NQ -1.00 are flat in pre-market trading pointing to a flat open. On Wednesday the SPX failed to break thorugh the 905 resistance area and fell back to the 897 before rallying. 897 was resistance on Tuesday and support on Wednesday. If this week's support bounce can not follow through be prepared for price to move down... Look at these Charts... Bounce or Bear Flag? (click image to enlarge) At the Open on Thursday SPY – doji above 50 DMA +0.86% QQQQ – white candle above 30 DMA +1.69% FUQI – bullish harami above 20 DMA +5.41% ESRX – bounce in bull flag above 20 DMA +3.44% DECK – spinning top above 20 DMA +0.49% AAPL – bullish harami above 30 DMA +1.65% QCOM – morning star above 20 DMA +1.75% SHLD – spinning top above 30 DMA +1.40% MRVL – spinning top at 20 DMA +2.17% STT – white candle bounce at 20 DMA +3.79% PCLN – bullish engulfing above 30 DMA +3.56% ICE – white candle support bounce above 30 DMA +5.00% JOYG – inverted hammer above 30 DMA +3.10% X – support bounce above 30 DMA +1.71% FAS – spinning top below 50 DMA +2.77% SPG – spinning top at 50 DMA +1.26% GMCR - at 30 DMA AMZN - below 30 DMA MUR - potential bear flag AMX - just below 30 DMA

Support Bounce Break High of the Low Day...

DJIA - 23.05, -0.29% SP500 + 5.84, +0.65% NASDAQ Comp. + 27.42, +1.55% Russell 2000 + 5.18, +1.06% Exchange NYSE NASD Advancing 2,180 1,607 Declining 831 1,120 Oil $68.67 -$0.57 Gold $933.80 +$10.10 SOX 258.08 +4.42 VIX 29.05 -1.53 The VIX moved down and did confirm the move up in the SPX on Wednesday. Strongest Sectors: XLK +1.41%...XLF +1.22%...XLB +1.00% Weakest Sectors: XLP +0.26%...XLE +0.40%...XLV +0.51% All nine sectors moved higher on Wednesday. Technology, Financials, Materials, Utilities and Industrials were stronger than the SPX +0.65%. Financial stocks stronger than XLF +1.22%: ICE, STT, CME, IVZ, AFL, PNC, BK, USB, MET, NTRS, PRU, SCHW, ALL FR, SPG and ETFs UYG and FAS. Tech stocks stronger than XLK +1.41%: ORCL, AMT, YHOO, EMC, DELL, SYMC, EBAY, INTC, TXN, AMAT, QCOM, and AAPL. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 897 = 50 DMA 903 – 905 = horizontal, 200 DMA & Monday’s R1 920 - 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 888 = weekly low 875 = May horizontal The SPX moved higher before the open on better than expected Durable Goods report at 1.8% vs. forecast of -0.5%. At 10 am ET the New Home Sales Report came in a 342K vs. an estimate of 365K. SPX rallied into the Fed announcement to keep rates steady. Sellers seemed concerned over the impact of inflation fears not withstanding Fed comments about tame inflation. The SPX sold off and the rallied into the close finishing up over five points for the day. On Thursday the Jobless Claims is expected to report a slight rise to 613K and GDP is expected to report flat at -5.7%. These Support Bounces on Wednesday either broke the high of the low day or confirmed a bullish harami pattern: GMCR, AMZN, CHL, MUR, RIMM, AMX, CLB, WAB, EBAY, TDG, PWR, CTSH, RCI Index Commentary The DJIA moved formed a black spinning top…three month chart target 10,340…volume was a below average 189 million shares…closed below its 20, 30, 50 and 200 DMA. The SPX formed an inverted hammer…closed just above its 50 and 200 DMA…3 month chart target of 1,075…closed below its 20 and 30 DMA. The Nasdaq formed an inverted hammer…3 month chart target of 2,065…closed above its 30, 50 and 200 DMA. The RUT formed an inverted hammer…closed above its 200 DMA….3 month chart target 606…closed below its 20, 30, and 50 DMA. At the Open on Wednesday SPY – doji above 50 DMA +0.86% QQQQ – white candle above 30 DMA +1.69% FUQI – bullish harami above 20 DMA +5.41% ESRX – bounce in bull flag above 20 DMA +3.44% DECK – spinning top above 20 DMA +0.49% AAPL – bullish harami above 30 DMA +1.65% NFLX – spinning top above 30 DMA +0.05% QCOM – morning star above 20 DMA +1.75% SHLD – spinning top above 30 DMA +1.40% MRVL – spinning top at 20 DMA +2.17% STT – white candle bounce at 20 DMA +3.79% ADBE – inverted hammer below 30 DMA +0.11% PCLN – bullish engulfing above 30 DMA +3.56% ICE – white candle support bounce above 30 DMA +5.00% JOYG – inverted hammer above 30 DMA +3.10% FLS – spinning top below 30 DMA +0.27% X – support bounce above 30 DMA +1.71% FAS – spinning top below 50 DMA +2.77% SPG – spinning top at 50 DMA +1.26% POT – spinning top higher low and higher high +1.46% AGU – spinning top higher low and higher high +0.74% GG – doji +2.87% Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA BIDU, VPRT, BAP, GR, K, DV, CPLA, SYNA, X, MCD, BDX, AAPL, GXDX, ORCL, DECK, CPLA, MYGN, DV, STRA, GILD, JW.A, ACN, APEI, PSYS, ESRX, NFLX, BYI, FAZ, JOYG, MHS, NTLS Moving Above 30 DMA = 8 BKC, CBST, HDB, ICE, PCLN, RBN, SLGN, USD Moving Below 30 DMA = 1 PPD Staying Below 30 DMA BLUD, JCOM, WRC, AFAM, AMZN, ATW, BAP, BIIB, FLS, GMCR, HLF, JEC, NIHD, SNHY, VAR, CHL, ESI, PCP, SWN, MUR, RIMM, SPWRA, AMX, ATW, BYI, CAM, CLB, GES, MOS, PWR, SLGN, CTSH, EBAY, FAS, MON, PCP, RCI, SNA, TDG, TRLG, URE, UYG, DLTR, EZPW, WAB, FSLR, WCG, WMT, DLB, JOSB, HANS, AMED, PETS, ALGT, GME, GPRO Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral

Futures Pointing to a Slightly Higher Open...

BMO - ES +4 and NQ +4 futures are higher in pre-market trading pointing to a slightly higher open. Before the open Durable Goods Orders are expected to be down -0.5% and at 10 am ET New Home Sales are forecasted at 365K. Excepting for a negative surprise on these announcements the big event that the markets seem to be "spinning top" around is the Fed announcement at 2:15 pm ET. Look at these Charts... (click image to enlarge) At the Open on Wednesday SPY – spinning top below 50 DMA QQQQ – spinning top below 30 DMA FUQI – bearish engulfing above 20 DMA ESRX – bull flag above 20 DMA DECK – spinning top above 20 DMA AAPL – spinning top above 30 DMA NFLX – spinning top above 30 DMA QCOM – hammer above 30 DMA SHLD – spinning top above 30 DMA MRVL – hammer at 30 DMA STT – doji at 30 DMA ADBE – hammer below 30 DMA PCLN – hammer below 30 DMA ICE – hammer below 30 DMA JOYG – piercing line below 30 DMA FLS – spinning top below 30 DMA X – hammer above 30 DMA FAS – spinning top below 50 DMA SPG – spinning top below 50 DMA POT – break high of low day AGU – break high of low day GG – break high of low day

I'm So Dizzy My Head is Spinning...

DJIA - 16.10, -0.19% SP500 + 2.06, +0.23% NASDAQ Comp. - 1.27, -0.07% Russell 2000 - 3.04, -0.62% Exchange NYSE NASD Advancing 1,424 1,098 Declining 1,559 1,607 Oil $69.24 +$1.74 – August contract Gold $923.70 +$3.30 SOX 253.66 -0.94 VIX 30.58 -0.59 The VIX moved down and did confirm the move up in the SPX on Tuesday. Essentially both indexes were unchanged for the day. Strongest Sectors: XLU +1.29%...XLF +1.15%...XLE +0.60% Weakest Sectors: XLY -1.02%...XLI -0.93%...XLU -0.88% Five of nine sectors moved lower on Tuesday. Materials, Financials and Energy were stronger than the SPX +0.23%. Financial stocks stronger than XLF +1.15%: MS, TROW, AFL, GS, IVZ, BAC, JPM, PRU, USB, MET, PNC, WFC, SPG, ALL, BK and ETFs UYG and FAS. Tech stocks stronger than XLK +0.06%: MA, AMT, T, VZ, ADBE, GLW, AMAT, CSCO, INTC, SYMC, MSFT and QCOM. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 897 = 50 DMA 903 – 905 = horizontal, 200 DMA & Monday’s R1 920 - 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 875 = horizontal “I’m so dizzy my head is spinning, Like a whirlpool it never ends And it’s you girl, making it spin You’re making me dizzy.” These lyrics of a blast from the past came to my mind as I looked at numerous stock charts today many of which had, you guessed it…spinning tops. There are spinning tops on charts all the time, but I can’t remember the last time I saw soooo many spinning top on the hard right edge. Yes, it definitely is the pause before the Fed. Existing Home Sales came in at 4.77M below estimates of 4.85M, which was an increase of 2.4% and the highest level since October. The SPX had a small bounce after the news, which was considered positive but mixed and then traded in a tight 10 point range between 888 and 898 for the balance of the day, closing at 895. The market seems to be in a holding pattern waiting for the Fed announcement tomorrow at 2:15 pm ET. Before the open Durable Goods Orders are expected to be down -0.5% and at 10 am ET New Home Sales are expected to report at 365K. We would expect the market to look to the Fed announcement unless there is a negative surprise in these reports. As always trade according to your rules. Educational stocks APEI, CECO, COCO, CPLA, DV, EDU, ESI and STRA moved lower again. APOL gained 6 cents. Remember a bullish harami is a variation of a spinning top. Coal, Ag-related and other stocks forming a bullish harami: RIMM, VPRT, JEC, ANR, BTU, CNX MEE, MOS, IPI, CF, GS, MS, AEM, GDX and SCHN. A few stocks broke the high of the low day: GG, GOLD, NEM, AGU and POT.

(click image to enlarge)

Index Commentary The DJIA moved formed a black spinning top…three month chart target 10,340…volume was a below average 237 million shares…closed below its 20, 30, 50 and 200 DMA. The SPX formed a black spinning top…3 month chart target of 1,075…closed below its 20, 30, 50 and 200 DMA. The Nasdaq formed a black spinning top…3 month chart target of 2,065…closed above its 50 and 200 DMA. The RUT formed a large black candle…broke below its 200 DMA….3 month chart target 606…closed below its 20, 30, 50 and 200 DMA.

At the Open on Tuesday SPY – spinning top below 50 DMA QQQQ – spinning top below 30 DMA FUQI – bearish engulfing above 20 DMA ESRX – bull flag above 20 DMA DECK – spinning top above 20 DMA AAPL – spinning top above 30 DMA NFLX – spinning top above 30 DMA QCOM – hammer above 30 DMA SHLD – spinning top above 30 DMA MRVL – hammer at 30 DMA STT – doji at 30 DMA ADBE – hammer below 30 DMA PCLN – hammer below 30 DMA ICE – hammer below 30 DMA JOYG – piercing line below 30 DMA FLS – spinning top below 30 DMA X – hammer above 30 DMA FAS – spinning top below 50 DMA SPG – spinning top below 50 DMA Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA BIDU, VPRT, BAP, GR, K, DV, CPLA, SYNA, X, MCD, BDX, AAPL, GXDX, ORCL, DECK, CPLA, MYGN, DV, STRA, GILD, JW.A, ACN, APEI, PSYS, ESRX, NFLX, BYI, FAZ Moving Above 30 DMA = 4 JOYG, MHS, NTLS, PPD Moving Below 30 DMA = 5 BLUD, CBST, HDB, JCOM, WRC Staying Below 30 DMA AFAM, AMZN, ATW, BAP, BIIB, FLS, GMCR, HLF, ICE, JEC, NIHD, PCLN, RBN, SLGN, SNHY, USD, VAR, CHL, ESI, PCP, SWN, MUR, RIMM, SPWRA, AMX, ATW, BYI, CAM, CLB, GES, MOS, PWR, SLGN, CTSH, EBAY, FAS, MON, PCP, RCI, SNA, TDG, TRLG, URE, UYG, DLTR, EZPW, WAB, FSLR, WCG, WMT, DLB, JOSB, HANS, AMED, PETS, ALGT, GME, GPRO, BKC Intermediate Term Market Trend: Neutral Short Term Market Trend: Down

Futures Pointing to a Slightly Higher Open...

Dave will be on VC Options from 3 to 5 pm MT today if you would like to join in and ask your market questions... 10:00 am ET - Existing Home Sales rise 2.4% to an adjusted annual rate of 4.77M less than the forecasted 4.85M, however the highest level since last October, SPX rises modestely... BMO - ES +4 and NQ +4 are higher in pre-market trading pointing to a slightly higher open. Last night in my AT Webcast I pointed out that the red Momentum Line was in the lower reversal zone which indicates there is approximately two out of three chances that the market will have at least a short term technical bounce today. If we see that bounce it is important to watch the key resistance levels. On the SPX they are 897 and 903 - 905 (also listed in Monday night's post) and on many individual stocks it is the R1 level of Monday's large black candle. If prices cannot break theses resistance levels that may be the point that new bearish positions can be entered and existing bullish positions exited. Also watch for the Existing Home Sales report this morning at 10 am ET, it will likely have an influence on the early tone of the market up or down if it is better or worse than expected...the forecast is to rise to 4.85M... This should be an exciting day... Look at these charts... (click image to enlarge) At the Open on Tuesday SPY – below 50 DMA QQQQ – below 30 DMA FUQI – above 20 DMA ESRX – above 20 DMA DECK – above 20 DMA AAPL – above 30 DMA NFLX – above 30 DMA QCOM – above 30 DMA SHLD – above 30 DMA MRVL – at 30 DMA STT – at 30 DMA ADBE – below 30 DMA PCLN – below 30 DMA ICE – below 30 DMA JOYG – below 30 DMA FLS – below 30 DMA X – below 30 DMA FAS – below 50 DMA SPG – below 50 DMA

SPX Breaks Support...

DJIA - 200.72, -2.35% SP500 - 28.19, -3.06% NASDAQ Comp. - 61.28, -3.35% Russell 2000 - 19.91, -3.88% Exchange NYSE NASD Advancing 326 443 Declining 2,709 2,288 Oil $66.93 -$2.62 Gold $920.40 -$15.20 SOX 254.60 -9.87 VIX 31.17 +3.18 The VIX moved up and did confirm the move down in the SPX on Monday. Strongest Sectors: XLU -0.29%...XLP -0.39%...XLV -1.80% Weakest Sectors: XLF -5.81%...XLB -5.06%...XLE -5.00% All nine sectors moved lower on Monday. Utilities, Consumer Staples, Healthcare Technology and Consumer Discretionary were down but were down less than the SPX -3.06%. Among financial stocks AOC, CB and MMC were down less than 2%. Among tech stocks VZ and T were up for the day while GLW, IBM, ADP, AMT AAPL and HPQ were down less than 2%. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 897 = 50 DMA 903 – 905 = horizontal, 200 DMA & Monday’s R1 920 - 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 875 = horizontal The SPX traded a 25 point range to the downside on Monday breaking its 903 horizontal support and 200 DMA and its 897 50 DMA level. Next level of support is the 875 horizontal support level. Monday’s sell off was attributed to the World Bank releasing its forecast that the world economy will contract by 2.9% in 2009 lower than its 1.7% forecast released in March. On Tuesday morning the Existing Home Sales report is expected to rise to 4.85 M. This could set the trading tone for a potential support bounce if it is positive or a continuation of Monday’s drop if the report is below expectations. Stay tuned and trade accordingly... Oil prices fell leading oil and energy stocks lower, XLE -5.00%, on the forecast of larger estimated economic contraction. Educational stocks APEI, APOL, CPLA, DV, ESI, COCO, and STRA did rollover as they bounced down from resistance and CECO and EDU gained 3 and 8 cents respectively. Index Commentary The DJIA moved formed a large black candle…broke below its 50 DMA…three month chart target 10,340…volume was an average 291 million shares…closed below its 20, 30, 50 and 200 DMA. The SPX formed a spinning top…broke below it 200 and 50 DMA …3 month chart target of 1,075…closed below its 20, 30, 50 and 200 DMA. The Nasdaq formed a large black candle…broke below its 20 and 30 DMA…3 month chart target of 2,065…closed above its 50 and 200 DMA. The RUT formed a large black candle…broke below its 30 and 50 DMA….3 month chart target 606…closed above its 200 DMA. At the Open on Monday SPY – below 50 DMA QQQQ – below 30 DMA FUQI – above 20 DMA AAPL – above 30 DMA NFLX – above 30 DMA QCOM – above 30 DMA SHLD – above 30 DMA MRVL – at 30 DMA STT – at 30 DMA ADBE – below 30 DMA PCLN – below 30 DMA USD – below 30 DMA ICE – below 30 DMA TRLG – below 30 DMA PRU – at 50 DMA FAS – below 50 DMA SPG – below 50 DMA URE – below 50 DMA Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA BIDU, VPRT, BAP, GR, HDB, K, DV, AXYS, CPLA, SYNA, X, MCD, BDX, AAPL, GXDX, ORCL, WRC, DECK, CPLA, MYGN, DV, STRA, BLUD, GILD, JW.A, ACN, APEI, PSYS, CBST, ESRX, JCOM, NFLX, BYI, Moving Above 30 DMA = 1 FAZ Moving Below 30 DMA = 20 AFAM, AMZN, ATW, BAP, BIIB, FLS, GMCR, HLF, ICE, JEC, JOYG, MHS, NIHD, PCLN, PPD, RBN, SLGN, SNHY, USD, VAR Staying Below 30 DMA CHL, ESI, PCP, SWN, MUR, RIMM, SPWRA, AMX, ATW, BYI, CAM, CLB, GES, MOS, PWR, SLGN, CTSH, EBAY, FAS, MON, PCP, RCI, SNA, TDG, TRLG, URE, UYG, DLTR, EZPW, WAB, FSLR, WCG, WMT, DLB, JOSB, NTLS, HANS, AMED, PETS, ALGT, GME, GPRO, BKC Intermediate Term Market Trend: Neutral Short Term Market Trend: Down

Futures Pointing to a Lower Open...

BMO - ES -9 and NQ -12 are lower in pre-market trading pointing to a lower open. Keep and eye on key support levels 90.30 in the SPY and 903 in the SPX. Between the opening price and these key support areas is where one would expect buyers to enter the market. Keep in mind the Fed announcement Wednesday afternoon which may keep the broad indices in a trading range until that occurs... Look at these stocks... (click image to enlarge) At the Open on Monday SPY QQQQ AAPL ADBE NFLX PCLN QCOM USD MRVL FAS ICE STT SPG PRU URE SHLD TRLG FUQI Keep and eye on the education stocks that are at resistance APOL, DV CECO, COCO, ESI...bounce down or break out?

AAPL, Nasdaq Rise...SPX, Dow Falters...

DJIA - 15.87, -0.19% SP500 + 2.86, +0.31% NASDAQ Comp. + 19.75, +1.09% Russell 2000 + 3.24, +0.64% Exchange NYSE NASD Advancing 1,862 1,590 Declining 1,109 1,105 Oil $69.55 -$1.82 Gold $935.60 +$1.60 SOX 264.47 +3.20 VIX 29.99 -2.04 The VIX moved down and did confirm the move up in the SPX on Friday. Strongest Sectors: XLF +1.26%...XLK +0.78%...XLY +0.39% Weakest Sectors: XLU -2.31%...XLP -1.76%...XLE -1.50% Four of nine sectors moved higher on Friday. Financials, Technology, Consumer Discretionary and Healthcare were stronger than the SPX +0.31%. Financial stocks stronger than XLF +1.26%: IVZ, NTRS, KEY, SPG, MET, PRU, STT, SCHW, RF, BAC, TROW, JPM, BK, AXP, ICE, WFC, AOC, AFL, PNC, C and ETFs UYG and FAS. Leading tech stocks stronger than XLK +0.78% include: DELL, YHOO, AAPL, MSFT, HPQ, ADBE, ORCL, EMC, QCOM, TXN, GOOG, AMAT, SYMC, EBAY, INTC and ADP. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 920 - 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 903 = horizontal & 200 DMA 897 = 50 DMA 875 = horizontal AAPL and the Nasdaq moved higher on Friday a reversal from Thursday’s weakness, while the SPX and DJIA could not maintain the upward momentum from their support bounce on Thursday. The SPX weekly trading range expanded from 29 to 38 points hitting a high of 942 and a low 903 and closing in the middle at 921. The Nasdaq had the stronger weekly move closing at 1,827 just 11 points below its weekly high as can been seen in the weekly line chart. (click image to enlarge) Technically the market continues in a seven week sideways trading range. Positives are: Weaker VIX, Stronger SOX, A support bounce in the Nasdaq which looks more like an uptrend than the SPX and XLF the strongest sector for the second straight day. Strong volume in leading stocks AAPL, MSFT, ORCL and QCOM Negatives are: Weaker DJIA and SPX Only four sectors rising Inability for the SPX to break resistance This market appears to becoming more selective so continue to focus on strong trending stocks. The pending Fed announcement on Wednesday may keep the broader market in a narrow range for the first part of the week. The Nasdaq benefited from strong Friday moves in AAPL, MSFT, ADBE, ORCL, FSLR, AMZN, QCOM, CELG, GOOG, BIDU, DTV and SYMC. RIMM which reported earnings Thursday evening was down 4.92% on Friday. Educational stocks which have been stronger over the past week exhibited some weakness on Friday as these stocks moved to resistance levels. Watch APEI, APOL, CPLA, DV, ESI, CECO, COCO, EDU and STRA for potential rollover or breakout on Monday. Looking into the upcoming week: Tuesday – Existing Home Sales expected to rise to 4.85 M Wednesday – Durable Goods are expected to drop -0.5% and New Home Sales rise to 365K, at 2:15 pm ET FOMC announcement Thursday – Jobless Claims slight rise to 613K and GDP flat at -5.7% Friday – Consumer Sentiment slight rise to 69.7 Index Commentary The DJIA moved formed a spinning top…three month chart target 10,340…volume was an above average 528 million shares, highest volume since April 17 …closed above its 50 DMA and at its 30 DMA. The SPX formed a spinning top …3 month chart target of 1,075…closed above its 30, 50 and 200 DMA. The Nasdaq formed a white spinning top…3 month chart target of 2,065…closed above its 20, 30 50 and 200 DMA. The RUT formed a black spinning top…closed a fraction below its 20 DMA….3 month chart target 606…closed above its 30, 50 and 200 DMA. At the Open on Friday SPY – black spinning top -0.19% USD – bullish harami +2.25% FAS – white spinning top confirm bullish harami +4.39% FAZ – black spinning top -4.66% UNG – black spinning top -0.85% AAPL – white candle following inverted hammer +2.65% AMZN – white spinning top +1.67% BIDU – white spinning top +1.21% DECK – white spinning top +2.63% GES – white spinning top support bounce +2.44% JOYG – doji +1.36% SYNA – white candle following doji +1.78% CTSH – black spinning top +0.47% FLS – black candle at support did not confirm hammer -1.92% NFLX – shooting star +0.68% MHS – dark cloud cover -1.50% DDS – black spinning top +0.11% WYNN – bullish harami +3.54% JOSB – black candle -2.60% APOL – dark cloud cover -1.12% GS – doji +0.03% Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA BIDU, ICE, VPRT, BAP, GMCR, GR, HDB, K, PCLN, VAR, PPD, FLS, NIHD, JOYG, DV, AXYS, CPLA, SYNA, X, MCD, BDX, AAPL, GXDX, ORCL, RBN, USD, WRC, DECK, CPLA, JEC, MYGN, AMZN, DV, STRA, BLUD, GILD, JW.A, ACN, APEI, BIIB, PSYS, CBST, ESRX, JCOM, MHS, NFLX, SNHY, ATW, BYI, HLF, SLGN Moving Above 30 DMA = 1 AFAM Moving Below 30 DMA = 3 CHL, ESI, PCP Staying Below 30 DMA FAZ, SWN, MUR, RIMM, SPWRA, AMX, ATW, BYI, CAM, CLB, GES, MOS, PWR, SLGN, CTSH, EBAY, FAS, MON, PCP, RCI, SNA, TDG, TRLG, URE, UYG, DLTR, EZPW, WAB, FSLR, WCG, WMT, DLB, JOSB, NTLS, HANS, AMED, PETS, ALGT, GME, GPRO, BKC Intermediate Term Market Trend: Neutral Short Term Market Trend: Up

Futures Pointing to a Higher Open...

Dave will be on the Market Wrap today at 4:30 pm ET with Tom Sosnoff and Ben Watson. 10:58 am ET - we just filled on a Model Portfolio ES futures trade that grossed $400 on 4 contracts in 23 minutes...will share details when I return...See Futures Trading in the left hand menu... BMO - ES +8 and NQ +13 are higher in pre-market trading pointing to a hgher open. Today is quadruple witching expiration Friday. Watch the 920 to 930 resistance area on the SPX. Look at these charts... (click image to enlarge) At the Open on Friday SPY – white spinning top USD – black candle FAS – bullish harami FAZ – large black candle UNG – bearish engulfing AAPL – inverted hammer AMZN – black spinning top BIDU – black spinning top DECK – black spinning top GES – black spinning top JOYG – doji SYNA – doji CTSH – black candle FLS – hammer NFLX – hanging man MHS – large white candle DDS – black spinning top inside day WYNN –black candle JOSB – black spinning top APOL – white spinning top GS – bullish harami

What Kind of Weak Whimpy Support Bounce is This?

DJIA + 58.42, +0.69% SP500 + 7.66, +0.84% NASDAQ Comp. - 0.34, -0.02% Russell 2000 + 2.45, +0.48% Exchange NYSE NASD Advancing 1,743 1,421 Declining 1,255 1,260 Oil $71.37 +$0.34 Gold $934.00 -$1.40 SOX 261.27 -4.89 VIX 30.03 -1.51 The VIX moved down and did confirm the move up in the SPX on Thursday. Strongest Sectors: XLF +2.41%...XLU +2.25%...XLV +1.92% Weakest Sectors: XLK -0.44%...XLE -0.38%...XLY -0.30% Six of nine sectors moved higher on Thursday. Financials, Utilities, Healthcare, Consumer Staples and Materials were stronger than the SPX +0.84%. Financial stocks stronger than XLF +2.41%: KEY, BAC, JPM, MET, PNC, PRU, ICE, STT, AFL, WFC, NTRS, ALL and ETFs UYG and FAS. Leading tech stocks stronger than XLK -0.44% include: EMC, ORCL, AMT, VZ, GLW, QCOM, HPQ, AAPL, EBAY, ADBE, T, GOOG and TXN. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 920 - 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 910 = 200 DMA 890 = 50 DMA 875 = horizontal What kind of weak whimpy support bounce is this? Oh, don't get me wrong there was good news today. What you say? Total jobless claims fell by 148K, the largest drop in seven years. The DJIA and SPX reversed course and rose today. The number of advancing stocks increased for the third straight day. The VIX fell. The Financial sector was the strongest sector as six of nine sectors rose. And there was weak news. The Nasdaq and SOX indices fell not a good sign for a strong rally. Volume was light. The SPX ran into resistance at 921 and pulled back three plus points during the last hour before the close. This rally just didn't have broad strength. This may be due ot options exipration Friday with quadruple witching. Whatever the cause it was a step in the up direction and we'll look for potential follow through on Friday. At the Open on Thursday SPY – white spinning top USD – black candle FAS – bullish harami FAZ – large black candle UNG – bearish engulfing AAPL – inverted hammer AMZN – black spinning top BIDU – black spinning top DECK – black spinning top GES – black spinning top JOYG – doji SYNA – doji CTSH – black candle FLS – hammer NFLX – hanging man MHS – large white candle DDS – black spinning top inside day WYNN –black candle JOSB – black spinning top APOL – white spinning top GS – bullish harami Stocks to Watch on Friday Leading Stocks Holding Above 30 DMA BIDU, ICE, VPRT, BAP, GMCR, GR, HDB, K, PCLN, VAR, PCR, PPD, FLS, NIHD, JOYG, CHL, DV, AXYS, CPLA, SYNA, X, MCD, BDX, AAPL, GXDX, ORCL, RBN, USD, WRC, DECK, CPLA, JEC, MYGN, AMZN, DV, STRA, BLUD, GILD, JW.A, ACN, APEI, BIIB, PSYS, CBST, ESI, ESRX, JCOM, MHS, NFLX, SNHY Moving Above 30 DMA = 5 ATW, BYI, HLF, PCP, SLGN Moving Below 30 DMA = 2 FAZ, SWN Staying Below 30 DMA MUR, RIMM, SPWRA, AMX, ATW, BYI, CAM, CLB, GES, MOS, PWR, SLGN, CTSH, EBAY, FAS, MON, PCP, RCI, SNA, TDG, TRLG, URE, UYG, DLTR, EZPW, WAB, FSLR, WCG, WMT, DLB, JOSB, AFAM, NTLS, HANS, AMED, PETS, ALGT, GME, GPRO, BKC Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral

Futures Pointing to a Flat to Higher Open...

Total jobless insurance rolls fell by 148K, the largest drop in seven years. BMO - ES +3 and NQ +3 futures are slightly higher in pre-market trading pointing to a flat to higher open. SPX closed at 910 in the area of the 200 DMA support. Watch the trading this morning to see if this support area holds. The VIX was lower yesterday and the SOX higher. Next support area is 893, the 50 DMA. RIMM reports earnings after the close. Thursday is the last day for most index futures and options and Friday is quadruple witching. Look at these charts... (click image to enlarge) At the Open on Thursday SPY – spinning top USD – hammer/bullish harami FAS – black candle below 50 DMA FAZ – white candle above 30 DMA UNG – holding above 30 DMA AAPL – black spinning top AMZN – white spinning top/bullish harami BIDU – white spinning top DECK – white spinning top GES – black spinning top JOYG – doji SYNA – bullish engulfing CTSH – bullish harami FLS – black candle in bull flag NFLX – break above 30 DMA heavy volume MHS – bullish engulfing DDS – doji WYNN –hammer JOSB - doji APOL – white candle confirm inverted hammer GS – close just below 30 DMA

Spinning Top Wednesday...

DJIA - 7.49, -0.09% SP500 - 1.26, -0.14% NASDAQ Comp. + 11.88, +0.66% Russell 2000 + 3.29, +0.65% Exchange NYSE NASD Advancing 1,266 1,421 Declining 1,720 1,277 Oil $71.03 +$0.56 Gold $935.40 +$3.80 SOX 266.16 +2.45 VIX 31.54 -1.14 The VIX moved down and did NOT confirm the move down in the SPX on Wednesday. Strongest Sectors: XLV +2.29%...XLY +1.40%...XLP +1.02% Weakest Sectors: XLF -2.93%...XLE -1.63%...XLB -1.14% Five of nine sectors moved higher on Wednesday. Healthcare, Consumer Discretionary, Consumer Staples, Technology and Utilities were stronger than the SPX -0.14%. Financial stocks stronger than XLF -2.93%: AOC, MMC, STT, CB, TRV, SCHW, BK, USB, TROW, CME, PRU, MET, ALL, SPG, MS, JPM and ICE. Leading tech stocks stronger than XLK +0.56% include: QCOM, TXN, ADBE, INTC, HPQ, SYMC, ORCL, MSFT, VZ and CSCO. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 920 - 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 910 = 200 DMA 890 = 50 DMA 875 = horizontal Check our Thursday morning post for additional insights to the current market... Sellers, buyers and then sellers took their turn in the SPX on Wednesday with the index closing down just over one point for the day. The SPX fell about 8 points during the first hour then reversed course and rose 14 points to 918 and then fell about 8 points during the final two hours of trading. Alternating momentum resulted in a small spinning top forming on the SPX. Advancing stocks increased while the number of declining stocks decreased for the second straight day. The SPX trading range for the first three days of this week increased to 38 points which is the largest trading range of the last three weeks. The Nasdaq, RUT and SOX all moved higher. Nasdaq stocks were led higher by biotech stocks CELG, GENZ, AMGN, GILD and BIIB and tech stocks QCOM, BIDU, ADBE, DTV,SYMC, ORCL, MSFT, CSCO and AMZN. Educational stocks DV, CPLA, APEI, ESI and STRA had strong moves for the second straight day. Index Commentary The DJIA moved formed a spinning top…three month chart target 10,340…volume was a below average 238 million shares …closed above its 50 DMA. The SPX formed a spinning top …3 month chart target of 1,075…closed above its 50 and 200 DMA. The Nasdaq formed a white spinning top closing above its 20 DMA…3 month chart target of 2,065…closed above its 20, 30 50 and 200 DMA. The RUT formed a white spinning top…moved back above its 30 DMA….3 month chart target 606…closed above its 30, 50 and 200 DMA. At the Open on Wednesday SPY – spinning top USD – hammer/bullish harami FAS – black candle below 50 DMA URE – black spinning top AAPL – black spinning top AMZN – white spinning top/bullish harami BIDU – white spinning top DECK – white spinning top GES – black spinning top JOYG – doji Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA BIDU, ICE, VPRT, BAP, GMCR, GR, HDB, K, PCLN, VAR, PCR, PPD, SWN, FLS, NIHD, JOYG, MUR, CHL, DV, AXYS, CPLA, SYNA, X, MCD, BDX, AAPL, GXDX, ORCL, RBN, USD, WRC, DECK, CPLA, JEC, MYGN, AMZN, DV, STRA, BLUD, GILD, JW.A, ACN, APEI, BIIB, PSYS Moving Above 30 DMA = 8 CBST, ESI, ESRX, FAZ, JCOM, MHS, NFLX, SNHY Moving Below 30 DMA = 3 HLF, RIMM, SPWRA Staying Below 30 DMA AMX, ATW, BYI, CAM, CLB, GES, MOS, PWR, SLGN, CTSH, EBAY, FAS, MON, PCP, RCI, SNA, TDG, TRLG, URE, UYG, DLTR, EZPW, WAB, FSLR, WCG, WMT, DLB, JOSB, AFAM, NTLS, HANS, AMED, PETS, ALGT, GME, GPRO, BKC Intermediate Term Market Trend: Neutral Short Term Market Trend: Down

Futures Mixed in Pre-Market Trading...

BMO - ES -2 and NQ +1 futures are mixed in pre-market trading pointing to a flat to lower opening. SPX closed at the 910 support area...look for either a bounce or break...next support level 890... Look at these charts... (click image to enlarge) Going Down? (click image to enlarge) At the Open on Wednesday SPY – large black candle USD – large black candle did not confirm hammer FAS – large black candle URE – black spinning top AAPL – inverted hammer AMZN – large black candle did not confirm hammer BIDU – black spinning top DECK – bearish engulfing GES – black candle did not confirm hammer JOYG – large black candle SYNA – spinning top inside day did not confirm hammer CTSH – black candle in bull flag FLS – black candle in bull flag DDS – large black candle pull back to support WYNN – inverted hammer bullish harami APOL – inverted hammer did not confirm hammer GS – spinning top in bull flag ESRX – spinning top in bull flag ALGT – large black candle in down trend JOSB – black candle in down trend ESI – doji SLGN – large black candle

SPX Drops to the 910 Support Level...

DJIA - 107.13, -1.25% SP500 - 11.75, -1.27% NASDAQ Comp. - 20.20, -1.11% Russell 2000 - 8.09, -1.58% Exchange NYSE NASD Advancing 853 781 Declining 2,148 1,902 Oil $70.47 -$0.15 Gold $931.60 +$4.70 SOX 263.71 -6.79 VIX 32.68 +1.87 The VIX moved up and did confirm the move down in the SPX on Tuesday. Strongest Sectors: XLV +0.40%...XLU -0.69%...XLK -1.26% Weakest Sectors: XLB -2.70%...XLY -2.52%...XLE -2.13% Eight of nine sectors moved lower on Tuesday. Healthcare, Utilities and Technology were stronger than the SPX -1.16%. Financial stocks stronger than XLF -1.73: GS, MMC, USB, CB, BK, TRV, AOC, KEY, CME, MS, AFL, SPG, PRU, WFC, ICE, JPM and MET. Leading tech stocks stronger than XLK -1.26% include: AAPL, MSFT, GOOG, IBM, VZ, HPQ, ADP, INTC DELL, and EBAY. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 920 - 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 910 = 200 DMA 890 = 50 DMA 875 = horizontal The SPX was moderately stronger for the first two hours of trading after which sellers again gained control and pushed the markets lower. Downward momentum slowed on Tuesday compared with Monday as the number of advancing stocks increased while the number of declining stocks decreased. Downward momentum was however strong enough to break the 920 support area and push prices to the 910 200 DMA support level. The 920 to 930 area now becomes horizontal resistance again. The next level of support is the 50 DMA at 890. Each of the four broad indices broke through at least one DMA today. The SPX trading range for the first two days of this week is already 30.85 points which is above the range of each of the first two weeks of June. Many stocks like the SPX started the day higher and then reversed to move lower. AAPL, WYNN, ESRX and MSFT finished the day higher. Biotech stocks AMGN, CELG, BIIB, CEPH and GILD along with educational stocks DV, CPLA, APEI, ESI and STRA moved higher. Some of the biotech and educational stocks are down trending and stocks in the Moving Below and Staying Below 30 DMA lists below also represent potential down trending opportunities. Index Commentary The DJIA moved lower following Monday’s bearish engulfing pattern…broke through its 20, 30 and 200 DMA and 8,600 horizontal support…three month chart target 10,340…volume was a below average 240 million shares …closed above its 50 DMA. The SPX formed a large black candle and broke below its 20 and 30 DMA …3 month chart target of 1,075…closed above its 50 and 200 DMA. The Nasdaq formed a large black candle and closed a fraction below its 20 DMA…3 month chart target of 2,065…closed above its 30 50 and 200 DMA. The RUT formed a large black candle…closed below its 20 and 30 DMA….3 month chart target 606…closed above its 50 and 200 DMA. At the Open on Tuesday SPY – large black candle USD – large black candle did not confirm hammer FAS – large black candle URE – black spinning top AAPL – inverted hammer AMZN – large black candle did not confirm hammer BIDU – black spinning top DECK – bearish engulfing GES – black candle did not confirm hammer JOYG – large black candle SYNA – spinning top inside day did not confirm hammer CTSH – black candle in bull flag CHL – black candle in bull flag did not confirm hammer like candle FLS – black candle in bull flag GOOG – black spinning top inside day SHLD – large black candle DDS – large black candle pull back to support WYNN – inverted hammer bullish harami APOL – inverted hammer did not confirm hammer FWLT – large black candle in bull flag GR – black candle in bull flag Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA BIDU, ICE, VPRT, BAP, GMCR, GR, HDB, RIMM, HLF, K, PCLN, VAR, PCR, PPD, SWN, FLS, NIHD, JOYG, MUR, CHL, DV, AXYS, CPLA, SPWRA, SYNA, X, MCD, BDX, AAPL, GXDX, ORCL, RBN, USD, WRC, DECK, CPLA, JEC, MYGN, AMZN, DV, SNHY, STRA, BLUD, GILD, JW.A, ACN, APEI Moving Above 30 DMA = 1 PSYS Moving Below 30 DMA = 10 AMX, ATW, BYI, CAM, CLB, GES, JCOM, MOS, PWR, SLGN Staying Below 30 DMA BIIB, CBST, CTSH, EBAY, ESRX, FAS, MON, PCP, RCI, SNA, TDG, TRLG, URE, UYG, DLTR, EZPW, WAB, FSLR, WCG, WMT, DLB, JOSB, AFAM, MHS, NTLS, ESI, HANS, AMED, PETS, ALGT, NFLX, GME, GPRO, BKC Intermediate Term Market Trend: Neutral Short Term Market Trend: Down