SPX Closes Lower...

DJIA                           10,024.02  -112.61 -1.11%
SP500                          1,070.71    -18.70 -1.72%
COMPQ                        2,222.33    -34.71 -1.54%
Russell 2000                    640.96   -20.65 -3.12%

Exchange                  NYSE              NASD
Advancing                     645                 481
Declining                    2,416              2,237

Key Resistance Levels
1,087 = Nov 10 Channel low
1,101 = October High
Key Support Levels
1,071 = May 20 Low
1,044 - 1,050 = Feb 8 low, Oct 08 High

Dave's Insight: Continue to Follow Your Rules.

Guidance:
The SPX opened lower rallied to 1,095 and sold off in the last two hours to close at 1,070 support. Formed a large black candle that retraced to the S2 level of Thursday's large white candle at near the close of the long tailed hammer on May 25.

The SPX is retracing last week's rally and could test the 1,040 low.  If support holds look for potential formation of a double/triple bottom or a higher low and a new support bounce. The MACD bullish divergence is still on the SPX, INDU, COMPQ and RUT charts.

Support did break and provided trade opportunities to the downside.

NFLX, DECK, AAPL, ORLY, BRCM and SNDK are still in up trends and setting up potential counter trend moves.

PCLN, RIMM and NIHD gave bear flag entry signals.
Bear Flag Setups: RYAAY, ISRG, ADBE, URBN, CMCSA, GOOG, SBUX

Trade strong stocks up.

Trade weak stocks down.

The VIX rose +3.47 and closed at 35.54.

The short term trend is down.
The six-month trend is neutral.
The twelve-month trend is up.

Adjust your stops on up and down trending trades.

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 +3.95
QCOM -0.49
GOOG -3.26
BIDU +0.35
NDX 100 stocks stronger than the NDX include: RYAAY, AAPL, ROST, BIDU, ISRG, MSFT, ADBE, URBN, ESRX, NTAP, SRCL, CMCSA, BIIB, COST, AKAM, DTV, GOOG, CSCO, SPLS, SBUX and ORLY.

Stocks weaker than the NDX: SHLD, STX, STLD, JOYG, WCRX, FSLR, FWLT, GRMN, NVDA, LINTA, MICC, APOL, NWSA, PCLN, FLEX, SIAL, CA, JBHT, WYNN, NIHD, RIMM, KLAC, EXPE, AMAT, ERTS, VRSN, CTAS, CEPH, ADSK, SYMC, XLNX, PPDI, EXPD, FISV, CERN, ALTR, EBAY, YHOO, TEVA, PDCO, AMGN, PCAR, DISH, HOLX, DELL, CTSH and MCHP.

Stocks to Watch on Wednesday
Holding Above 30 DMA
EXBD, NTRI, FAZ, NFLX, SNDK, AZO, DECK, LXK
Moving Above 30 DMA = 0

Moving Below 30 DMA = 9
ATI, CRM, HAS, LVS, OSTK, SYNA, UNG, WFMI, WHR
Staying Below 30 DMA
DE, ICE, UAUA, ESI, BYI, DHR, GR, MCD, WMT, ZION, STI, PNC, AIV, HLF, AMD, CAT, CREE, SPG, SWK, UNP, URE, WFC, BA, JEC, CHL, GME, HANS, ACN, AMX, DOW, FAS, FLS, PCLN, PCP, TSL, USD, USO, UYG, ATW, BAC, GES, MA, V, CAM, SWN, BUCY, WLT, CLF, MHS, GMCR, GS, FCX, X, AGU, IPI, POT, MOS

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