SPX Breaks Friday Low...Falls to 1,050 Support Area...

DJIA 9,816.49 -115.48 -1.16%
SP500 1,050.47 -14.41 -1.35%
COMPQ 2,173.90 -45.27 -2.04%
Russell 2000 618.49 -15.48 -2.44%

Exchange    NYSE NASD
Advancing      816      471
Declining     2,238   2,250

The SPX returned to support at 1,050 in an apparent test of the support bounce on May 25. The SPX trading range contracted from 45 points on Friday to 21 points on Monday. Advancing issues increased from 292 on Friday to 816 on the NYSE.


There is a bullish divergence in the MACD Histogram and 2 line, the stochastic, the CCI and the RSI. A bullish divergence also exists on the VIX and the green line of the Market Forecast. The oscillators indicate that there is a higher probability of a support bounce than a support break.

Look at this Chart

(click image to enlarge)

Trade the chart, bounce or break.

Strong stocks include: AKAM, DTV, GOOG, ILMN, UNG, HSY, SWN, CRM, UAUA, CAL, ALK, DECK, LVS, ICE, VMW and CMG.

Weak stocks?  Everything below their 30 DMA below.

Dave's Insight: Follow Your Rules...still the right action to take.

Guidance:
The SPX broke Friday’s low at 1,060 and fell to next support area closing at 1,050.

The VIX rose +1.09 and closed at 36.57.

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 -5.02
QCOM -0.29
GOOG -13.20
BIDU -3.39
NDX 100 stocks stronger than the NDX include: CELG, ESRX, RYAAY, ILMN, GENZ, SYMC, MICC, PDCO, YHOO, BIIB, WCRX, DTV, STLD, COST and AMZN.

Stocks weaker than the NDX include: WYNN, RIMM, KLAC, NVDA, BIDU, LRCX, FSLR, ADSK, STX, FWLT, MRVL, FLEX, JOYG, APOL and PPDI.

Stocks to Watch on Tuesday
Holding Above 30 DMA
CSTR, TLT, FAZ, NFLX, SNDK, CMG, VMW, AZO, DECK, HSY, CRM, SWN, UAUA, UNG
Moving Above 30 DMA = 1
MHS
Moving Below 30 DMA = 2
ICE, LVS
Staying Below 30 DMA
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, CHL, GME, HANS, CAN, 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: Down