Spinning Top Tuesday...Short Term Yellow Alert...

DJIA + 19.43, +0.22% SP500 + 1.87, +0.20% NASDAQ Comp. + 8.12, +0.44% Russell 2000 + 5.30, +1.02% Exchange NYSE NASD Advancing 1,787 1,537 Declining 1,233 1,173 Oil $68.55 -$0.03 Gold $983.20 +$4.60 SOX 276.29 -9.42 VIX 29.63 -0.41 The VIX moved down and did confirm the move up in the SPX on Tuesday. Strongest Sectors: XLP +1.40%...XLP +1.02%...XLY +0.83% Weakest Sectors: XLF -1.62%...XLU -1.19%...XLE -0.27% Five of nine sectors moved higher on Tuesday. Consumer Staples, Materials, Consumer Discretionary and Healthcare were stronger than the SPX +0.20%. Financial stocks stronger than XLF -1.62%: PRU, IVZ, ICE, ZION, GTRV, CB, MMC, BAC, CME, KEY, MET, BK, TROW, STT, ALL, MS, AF., AOC, FR, SCHW, GS, and NTRS. Leading tech stocks stronger than XLK -0.22% include: EMC, ORCL, SYMC, BZ, T, ADBE, CSCO, GOOG, YHOO, AAPL and MSFT. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 944 = January horizontal 962 = 161.8% Fib extension Key support levels: 930 = horizontal & 200 DMA 913 = Friday’s S1 907 = Friday’s S2 899 = Thursday’s S1 875 = horizontal The SPX fluctuated in a narrow trading range of 11 points on Tuesday closing about one point above the January high. Tuesday once again is a high day with loss of upward momentum setting up a Yellow Alert for short term traders. Watch for a potential break of the low of the high day. Intermediate term traders stay with the current up trend just as you have during the past 12 weeks. DJIA volume was significantly lower than the past three trading days which may further indicate that buying volume has temporarily peaked and might be a clue for a potential short term pull back. The weakness in the SOX while Nasdaq was higher could be another clue signaling a short term pull back. Charts of Interest... (click image to enlarge) Index Commentary – Yellow Alert The DJIA formed a small white spinning top and closed just below its 200 DMA…three month chart target 10,340…volume was 257 million shares …closed above its 20, 30 and 50 DMA. The SPX formed a small white spinning top after a three white soldiers candle pattern …3 month chart target of 1,075…closed above its 20, 30, 50 and 200 DMA. The Nasdaq a spinning top with a new high close…its highest close since October 13, 2008… 3 month chart target of 2,065…closed above its 20, 30 50 and 200 DMA. The RUT formed a white spinning top….3 month chart target 606…closed above its 20, 30, 50 and 200 DMA. At the Open on Tuesday SPY – white spinning top KOL – black spinning top USD – bearish harami FAS – black spinning top CTV – black spinning top JOYG – black spinning top X – black spinning top STLD – black spinning top ADBE – white spinning top new high close EL – white spinning top WAB – white candle hit 200 DMA resistance OSG – broke low of the high day ZION – white spinning top UNG – doji NTAP – broke low of high day FWLT – white spinning top XME – white spinning top XRT – white candle at horizontal resistance, new high close Stocks to Watch on Wednesday 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, DECK, FAS, WMT, CPLA, JEC, MYGN, PWR, URE, AMZN, DV, EZPW, JCOM, JOSB, JW.A, NTLS, SNA, SNHY, STRA, WAB Moving Above 30 DMA = 1 BLUD Moving Below 30 DMA = 1 DLB Staying Below 30 DMA APEI, ESI, HANS, URE, MON, AMED, PETS, PWR, ALGT, NFLX, GME, GILD, GPRO, SLGN, BKC Intermediate Term Market Trend: Neutral Short Term Market Trend: Up