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