SPX Forms Bullish Harami as Closes Lower...

DJIA                          10,154.43  +56.53  +0.56%
SP500                         1,071.25    +6.37   +0.60%
COMPQ                      2,198.23   +19.18   +0.88%
Russell 2000                  613.08    +2.69   +0.44%

Exchange                  NYSE             NASD
Advancing                 1,958              1,554
Declining                   1,036              1,083

Oil           $76.90      +0.63
Gold   $1,182.00       -6.00
SOX        357.94      +8.78
VIX            25.97      -0.28

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

Leading stocks on Monday included VECO, USD, CAM, TSL, NETL, ESI, CREE, GME, GMCR, URE, BA, UCO, CRUS, A, AIV, VMW, BUCY, SPG, CAT, ICE, SWK, FCX, ATI, WHR


The SPX formed a bullish harami while also making a slightly lower low.  Monday is a new low day. A break above Monday's high is a new entry off of what could be a higher lower flag pattern. Monday is a Yellow Alert for a potential entry into a bullish trade.

There are 12 Dow and 122 S&P companies reporting this next week. Earnings will continue to be a major factor driving the buying and selling of individual stocks.

Earnings continue to be mixed.  Those companies that report strong earnings, revenues and Q3 guidance should produce relatively stronger stocks.
Monday
DAL 65 cents vs 63 cents est.
HAL 52 cents vs 37 cents est.
HAS 29 cents vs. 24 cents est.
IBM 2.61 vs 2.58 est.
TXN 62 cents vs. 62 cents est.
ZION -84 cents vs. -55 cents est.

Earnings of interest of leading companies include:
Tuesday – ALTR, AAPL, BIIB, CRUS, GILD, JNJ, LLTC, MICC, BTU, PEP, STLD, UAUA, UNH, WHR, YHOO
Wednesday – ALGT, AMR, AMLN, BIDU, CA, CHKP, KO, EBAY, FFIV, FCX, GENZ, NFLX, QCOM, SWK, SBUX, LCC, UTX, WFC, WDC, XLNX
Thursday – MMM, ALK, AMZN, AMX, AXP, T, BUCY, CAT, CMG, CAL, DHR, DECK, FLEX, FLIR, HSY, ESI, KEY, MHS, MSFT, MOS, NUE, PNC, PCP, SNDK, SIAL, STI, TRV, UNP, UPS
Friday – DLR, F, HON, MCD, OSTK, SLB, SKX, VZ

Guidance:

SPX forms bullish harami.
The SPX closed just below its 30 DMA.
The VIX did confirm the higher close in the SPX.
Breadth was strong as advancers led decliners 1.9 to 1 on the NYSE.

Enter strong stocks up with a break above the high of the low day. Stay with stocks in a bounce continuation.

Tighten stops on down trending stocks showing strength.

The VIX fell -0.28 and closed at 25.97. Volatility closed above the important 25 level on Monday.

The short term 3 day trend is down.
The two-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 -4.32
QCOM +0.81
GOOG +6.57
BIDU -0.63
NDX 100 stocks stronger than the NDX include: APOL, NVDA, XLNX, RIMM, BRCM, NIHD, GILD, NWSA, LLTC, MCHP, DELL, FLEX, DTV, KLAC and ALTR.

Stocks weaker than the NDX: SHLD, AAPL, XRAY, STLD, HSIC, ESRX, BIDU, PDCO, ISRG, CERN COST, WCRX, AKAM, CSCO and RYAAY.

Stocks to Watch on Tuesday
Holding Above 30 DMA
TLT, CRUS, GMCR, HANS, TSL, ACN, HSY, BUCY, CAT, CREE, CRM, DLR, FFIV, MA, NETL, NFLX, PCLN, TIE, VMW, AGU, MCD, NTRI, DE, GS, IPI, AKS, MOS, POT, FAZ
Moving Above 30 DMA = 5
CAM, UCO, USD, USO, VECO
Moving Below 30 DMA = 0


Staying Below 30 DMA
AIV, AMX, ATW, BAC, CHL, CSTR, DOW, FAS, FLS, GES, GR, HLF, MHS, PCP, PNC, SPG, STI, UAUA, UNP, URE, WFMI, WMT, X, ZION, BA, FCX, HAS, SWK, V, WHR, SNDK, FAZ, UNG, CLF, CMG, DECK, LVS, NYX, SKX, SWN, ICE, A, AMD, LXK, ATI, DHR, WLT, ESI, BYI, JEC, GME

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