Tombstone Doji and Assorted Bearish Candles...

DJIA + 57.06, +0.68% SP500 + 4.01, +0.44% NASDAQ Comp. + 10.68, +0.58% Russell 2000 + 9.18,+1.81% Exchange NYSE NASD Advancing 2,214 1,819 Declining 760 889 Oil $69.31 -$0.58 Gold $941.00 -$13.90 SOX 263.15 +3.87 VIX 26.22 -0.13 The VIX moved down and did confirm the move up in the SPX on Wednesday. Strongest Sectors: XLP +1.70%...XLU +1.29%...XLY +0.65% Weakest Sectors: XLF -0.59%...XLE +0.04%...XLB +0.23% Eight of nine sectors moved higher on Wednesday. Consumer Staples, Utilities, Consumer Discretionary and Technology were stronger than the SPX +0.44%. Financial stocks stronger than XLF -0.59%:ALL, CB, AFL, STT, TRV, AOC, C, PRU, GS, SPG, MMC, NTRS, WFC, MS and ETF UYG. Tech stocks stronger than XLK +0.44%: INTC, ORCL, TXN, ADBE, MSFT, AMAT, T and CSCO. 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 The SPX reached 931.92, the nearest zone of horizontal resistance, early in the morning before selling off to close at 923 at the horizontal support area. Thursday is the last trading day for the week. Friday begins the July 4th weekend and we wish each one of you a happy and safe weekend as you celebrate 233 years of independence. Positives: All four broad indices moved higher led by the RUT, small caps VIX moves lower SOX moves higher INTC, ORCL, TXN, ADBE, MSFT and CSCO Nasdaq bellweather stocks close higher Negatives: SPX, Nasdaq and DJIA pulled back from intraday highs and closed in the lower half of their respective candle patterns Upward Momentum was weak BIDU, RIMM, AMZN and FSLR form a bearish engulfing or outside day pattern AAPL gains and then retreats late in trading day Bottom Line: Wednesday was another high day for the DJIA, SPX, Nasdaq and RUT and did not close below Tuesday’s low. Watch for a potential break of the low of the high day on Thursday. Stay with up trending positions as long as they continue to up trend. We maintain our Yellow Alert status. Index Commentary – Yellow Alert The DJIA moved formed a white spinning top…Wednesday is the high day…broke above its 200 DMA…three month chart target 10,340…volume was a below average 184 million shares…closed above its 50 and 200 DMA. The SPX formed a shooting star…broke above its 30 DMA…Wednesday is the high day…3 month chart target of 1,075…closed above its 30, 50 and 200 DMA. The Nasdaq formed a tombstone doji….Wednesday is the high day…3 month chart target of 2,065…closed above its 20, 30, 50 and 200 DMA. The RUT formed a white candle…broke above its 20DMA…3 month chart target 606…closed above its 20, 30, 50 and 200 DMA. At the Open on Wednesday SPY – tombstone doji QQQQ – shooting star FUQI – shooting star GMCR – black shooting star SHLD – black spinning top FAS – spinning top inside day TRLG – spinning top inside day ICE – black candle ESRX – white spinning top MUR – black shooting star JOYG – tombstone doji STT – bearish harami AMX – white spinning top new high X – black candle DECK – white spinning top AMZN – bearish engulfing AAPL – black spinning top PCLN – bearish doji harami BIDU – bearish engulfing GES – white spinning top DLB – bearish harami SYNA – black spinning top NFLX – bearish engulfing PWRD – white candle support bounce +5.28% Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA BIDU, VPRT, K, DV, CPLA, SYNA, BDX, AAPL, GXDX, ORCL, DECK, CPLA, 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, TRLG, ALGT, ESI Moving Above 30 DMA = 5 GR. JOYG, MCD, TDG, WCG Moving Below 30 DMA = 4 AMZN, MYGN, PWR, X Staying Below 30 DMA BAP, GPRO, JEC, NIHD, SNHY, UYG, BLUD, RBN, FAZ, AFAM, ATW, BIIB, FLS, VAR, PCP, SWN, MUR, RIMM, SPWRA, CAM, CLB, MOS, EBAY, FAS, MON, RCI, SNA, URE, DLTR, EZPW, WAB, FSLR, WMT, DLB, JOSB, HANS, GME Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral