SPX Confirms Hammer...Breaks the High of the Low Day...

DJIA              10,405.85 +103.84   +1.01%
SP500             1,092.54   +13.16   +1.22%
COMPQ          2,209.44   +27.57   +1.26%
Russell 2000      626.30   +11.20   +1.82%

Exchange      NYSE    NASD
Advancing     2,401      1,996
Declining          639        659

Oil                $76.30   +1.06
Gold        $1,226.60   +2.10
SOX             328.60   +4.34
VIX                24.33    -1.77

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

Leading stocks on Tuesday included POT, MOS, A, WLT, IPI, FFIV, AGU, AKS, SWN, URE, X, FLS, CSTR, BUCY, ATI, CLF, SKX, TIE, SWK, DECK, GMCR, LVS, FCX, PCLN, CREE, PCP, BYI, WHR, GR, CRM, HLF, VECO, SPG, ATW, HAS, DE, SNDK, BA, UNP, FAS, UCO, CMG, MCD, USD, ACN, CAT, ZION, RMBS, GES, ICE, MA, JEC, HANS

The SPX opened higher reaching an intraday high of 1,100, the next resistance level and then pulled back the last two hours of trading closing at 1,092. Tuesday’s action did confirm Friday’s inside day as a reversal day. Tuesday did break the high of the low day. Twenty six stocks in our watch list and the NDX 100 gave support bounce or bull flag entry signal while ten closed above their 30 DMA with no stocks made a new close below their 30 DMA.

INDU = doji confirmation support bounce
SPX = hammer confirmation support bounce
COMPQ = piercing line confirmation

POT, MOS, AGU, IPI, PCLN, LVS, GR, CHL, CAM, VMW, CTXS, AKAM, CAT, CLF, DE, GME, GMCR, HLF, RVBD, MICC, QCOM, BIDU and JOYG and moved higher.

NFLX, NTES and VOD pulled back from Monday’s close.

BUCY, CMG, CRM, DLR, FCX, FDX, FFIV, FLS, HAS, LXK, MCD, PCP, SPG, SWK, TIE, UNP, UPS, URE, WLT, WMT, X, AMZN, CTSH, INTU, EXPD, EXPE and GOOG gave support bounce or bull flag entry signals on Tuesday with a break above the high of the low day.

Support Bounce Setups for Wednesday: NYX, GS, GES, CRUS, UAUA, CAL, TIE, SINA, NDAQ

Stay focused on and trade according to the chart on Wednesday.

N100 Flags: WYNN, LOGI, ILMN, HOLX

Guidance:
SPXResistance: 1,100, 1,115
Support: 1,086, 1,071, 1,056

Enter strong stocks up with a bounce off support and a break above the high of the low day.

Tuesday was the day to exit many bearish trades that broke above the high of the low day. Wait for a break of the low of a high day to enter new bearish trades

The VIX fell -1.77 to 24.33 confirming Tuesday’s move up and dropping below the benchmark 25 level.

The short term 3 day trend is up.
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+4.33 – confirm bullish harami and inside day entry
QCOM +0.50 – support bounce continuation after bullish engulfing entry
GOOG +4.93 – spinning top entry confirms Friday’s bullish harami and inside day
BIDU +0.08 –bounce continuation in bull flag

NDX 100 stocks stronger than the NDX include: URBN, NIHD, FAST, PCAR, JOYG, FLEX, GRMN, PCLN, BRCM, EXPD, STLD, JBHT, SYMC, CTXS and SIAL.

Stocks weaker than the NDX: STX, APOL, RIMM, GENZ, LBTYA, AMGN, CELG, CERN, VRTX, NTAP, CMCSA and BIDU.

Stocks to Watch on Wednesday
Holding Above 30 DMA
TLT, GMCR, HANS, BUCY, CAT, HLF, PCLN, AGU, MCD, DE, GS, IPI, MOS, POT, FCX, FLS, GES, PCP, WLT, X, CHL, CLF, FFIV, GR, LVS, SPG, HAS, NYX, LXK, MA, NFLX, FAZ, CAM, VMW, AMX, CMG, CSTR
Moving Above 30 DMA = 10
A, BA, BYI, CRM, GME, RMBS, SWK, UNP, URE, WMT
Moving Below 30 DMA = 0

Staying Below 30 DMA
CRUS, ACN, TSL, AIV, AKS, ATI, CREE, DECK, DHR, DOW, FAS, SNDK, STI, TIE, UAUA, UCO, USO, V, DLR, ICE, USD, PNC, SWN, ZION, UNG, VECO, WFMI, NETL, SKX, AMD, JEC, NTRI, ESI, HSY, BAC, MHS, WHR

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