SPX Rallies Off 1,100 Low...Forms Hammer...

Dave finished a two Advanced Technical Analysis trading workshop with 150 traders in Long Beach today.

The SPX formed a hammer candle pattern and is in process of forming a potential bullish divergence on the MACD histogram a potential double bottom pattern.  ESI and DE moved higher on Wednesday.

SPX
Key Resistance Levels
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,145 = 1,133 BO chart target – Dec 31 Low
1,155 = 1,119 BO chart target – Dec 23
1,178 = Fib extension
Key Support Levels
1,105 - 1,113 = November High
1,101 = October High

Guidance:
The SPX opened lower and sold off to 1,100.55 just before noon in a test of the 1,094 low on Friday, May 7.  Buyers stepped just above the May 7 low during the afternoon and the SPX rallied to a 1,115.05 close.

SPX consolidation continues with a bounce off of the 1,100 support area. With a combination of a potential double bottom and bullish MACD divergence look for potential confirmation of the hammer candle pattern and a bullish divergence entry signal.

Trade strong stocks up. Few stocks are maintaining their up trend.

Trade down trending stocks down as they pull back from resistance or break through support.

The VIX rose +1.77 and closed at 35.22.

The short term trend is down.

The six-month trend is neutral.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch, trade with the trend and follow your rules.

Adjust your stops according to your rules for up and down trending trades.

AAPL -4.02
QCOM -0.26
GOOG -3.94
BIDU –1.44
NDX 100 stocks stronger than the NDX include: APOL, GRMN, MRVL, GILD, RYAAY, BBBY, BRCM, NVDA, ORLY, AMGN, ALTR, MXIM, LLTC, VRTX, URBN, INTC, XLNX, ADSK, AMAT, SRCL, MCHP, CELG, KLAC, TEVA, LOGI, CHRW, LRCX, PDCO, NTAP, COST, CEPH, FSLR, GENZ, HSIC, ROST, LIFE, HOLX, DELL, EXPE and CERN.

Stocks weaker than the NDX include: JOYG, INTU, NWSA, STX, SHLD, ERTS, EBAY, PCAR, FWLT, BIDU, SYMC, SPLS, NIHD, ILMN, FLEX, AAPL, YHOO, SBUX, PCLN, DISH, PPDI, AMZN, AKAM EXPD, MICC, MSFT, STLD, ADBE and CTXS.

Stocks to Watch on Thursday
Holding Above 30 DMA
NFLX, OSTK, EXBD, NTRI, HAS, HLF, SNDK, WFMI, FAZ
Moving Above 30 DMA = 1
ESI
Moving Below 30 DMA = 7
BYI, DHR, GR, MCD, UNG, WHR, WMT
Staying Below 30 DMA
ICE, ZION, CRM, STI, PNC, AIV, AMD, ATI, CAT, CREE, DECK, LVS, SPG, SWK, UNP, URE, WFC , BA, DE, JEC, LXK, CHL, GME, SYNA, HANS, ACN, MYGN, AMX, BKC, DOW, FAS, FLS, PCLN, PCP, TSL, UAUA, USD, USO, UYG, ATW, BAC, GES, MA, V, CAM, SWN, BUCY, WLT, CLF, MHS, WCG, GMCR, GS, FCX, X, PWRD, AGU, IPI, POT, MOS

Intermediate Term Market Trend: Neutral
Short Term Market Trend: Down