SPX Rally Fizzles as AAPL, BIDU, GOOG and QCOM Sell Off...

DJIA                           9,899.25  -40.73 -0.41%
SP500                         1,055.69   -6.31 -0.59%
COMPQ                      2,158.85  -11.72 -0.54%
Russell 2000                  618.29  +0.60 +0.10%

Exchange                  NYSE              NASD
Advancing                  1.580               1,252
Declining                    1,484               1,386

Oil            $74.38      +2.32
Gold     $1,228.50     -15.50
SOX          332.06       -2.52
VIX             33.73      +0.03

Index  Direction       Confirmation
VIX         Up             Yes – SPX
SOX    Down            Yes – COMPQ

The SPX rallied near Friday's R1 level reaching 1,077 before pulling back 22 points to close down 6 points at 1,055. High volatility continues to produce a large daily trading range with price moving from support to resistance to support. This not a major surprise for a neutral trading range with high volatility.

Major NDX stocks AAPL, BIDU, GOOG and QCOM led stocks lower on Wednesday afternoon.

If I had a hammer, I'd hammer in the morning...hammer stocks CMG, UAUA moved higher while SNDK formed an inverted hammer and BIDU failed to confirm.

Look at these Charts

(click image to enlarge)

Trends with bull flags...VMW, AKAM, DTV and CRM all gave intraday entry signals but did not give end of day entry signals as each failed to hold above the high of the low day.

Look at these Charts

(click image to enlarge)

Dave's Insight: Continue to Follow Your Rules.

Guidance:
The SPX continues to trade above support. As long as the SPX stays above support look for stronger stocks like NFLX, AKAM, DTV, VMW, ALK, CAL, AAP, ORLY, ILMN, SRCL, HSY and TIE to trade up.

Short term resistance is at 1,081 the mid-section R1 level of Friday's large black candle.
Trade strong stocks up.
Trade weak stocks down.

The VIX fell +0.03 and closed at 33.73.

The short term 3 day trend is neutral.
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 of the chart and follow your rules.

AAPL -6.13
QCOM -0.55
GOOG -10.76
BIDU -3.09
NDX 100 stocks stronger than the NDX include: FWLT, SRCL, AKAM, FLEX, JOYG, ROST, CTXS, NIHD, SBUX, SHLD, ISRG, VRSN, PPDI, COST and ILMN.

Stocks weaker than the NDX: BDU, AAPL, NVDA, GOOG, CELG, ALTR, ERTS, GILD, QCOM, LRCX, XLNX, CERN VRTX, GENZ and ATVI.

Stocks to Watch on Thursday
Holding Above 30 DMA
TLT, FAZ, NFLX, SNDK, CMG, VMW, AZO, DECK, CRM, SWN, UAUA, UNG, MHS, CHL, LVS
Moving Above 30 DMA = 0

Moving Below 30 DMA = 0

Staying Below 30 DMA
CSTR, DE, HLF, LXK, NTRI, WFMI, HAS, ATI, WHR, ESI, BYI, DHR, GR, MCD, WMT, ZION, STI, PNC, AIV, AMD, CAT, CREE, SPG, SWK, UNP, URE, WFC, BA, JEC, GME, HANS, ACN, AMX, DOW, FAS, FLS, PCLN, PCP, TSL, USD, USO, ATW, BAC, GES, MA, V, CAM, BUCY, WLT, CLF, GMCR, GS, FCX, X, AGU, IPI, POT, MOS

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