SPX Finds Support...Reverses...Forms Hammer...

Dave is traveling from Sacramento this evening from a great two day Technical Analysis Workshop in Sacramento with more than 200 traders.  We hope everyone travels safely.


DJIA              10,060.06   +19.61   +0.20%
SP500             1,055.33     +3.46   +0.33%
COMPQ           2,141.54   +17.78   +0.84%
Russell 2000       604.87    +9.28   +1.56%

Exchange     NYSE      NASD
Advancing    1,836       1,692
Declining      1,177         980

SOX        321.50   +3.09
VIX           26.70   -0.76

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

Leading stocks on Wednesday included NETL, CRUS, VECO, LVS, UCO, MHS, ESI, URE, NYX, NFLX, AMD, GES, WHR, USO, AIV, ICE, MA, BYI, WFMI, SPG, CMG, USD, DLR, A, FAS, DECK, SKX, PCLN, RMBS

The SPX fell to 1,039.83, a similar support low to May 25, where buyers took control and created an intraday reversal moving to the SPX up 20 points from its low before closing at 1,055.33. This was the SPX’s first up day since last Wednesday. The COMPQ and RUT formed bullish engulfing patterns.

INDU = hammer bullish harami
SPX = hammer
COMPQ = bullish engulfing pattern
RUT = bullish engulfing pattern

Support Bounce Setups for Thursday - GMCR, HANS, HLF, PCLN, RVBD, AGU, MCD, POT, GES, CLF, FFIV, LVS, NFLX, VMW, CMG, NTES, CRM, AKAM, NTAP, BIDU, QCOM, MRVL, INTU, CSTR, LXK, CAM, POT, AGU, MOS

Guidance:
Watch for support bounce continuation to continue on Thursday and trade setups according to your rules.  Adjust stops on bearish trades for a potential exit if they bounce above the high of the low day according to your rules.

Trade with the trend of the chart and follow your rules.

SPX
Resistance: 1,071, 1,086, 1,100, 1,115
Support: 1,056, 1,041

The short term 3 day trend is down.
The two-month trend is neutral.
The twelve-month trend is up.

AAPL+2.96 – bullish engulfing
QCOM +0.61 – bullish engulfing
GOOG +3.23 – piercing line
BIDU +0.96 – bullish engulfing

NDX 100 stocks stronger than the NDX include: SHLD, APOL, FLEX, GRMN, BIIB, ISRG, AKAM, COST, HOLX, ROST, DISH, CERN, SBUX, WYNN and GILD.

Stocks weaker than the NDX: FWLT, WCRX, JOYG, ADBE, CHKP, HANS, YHOO, RYAAY, CTAS, CTXS, FAST, NTAP, SRCL, CEPH and CA.

Stocks to Watch on Thursday
Holding Above 30 DMA
TLT, GMCR, HANS, HLF, PCLN, RVBD, AGU, MCD, POT, GES, CLF, FFIV, LVS, NFLX, FAZ, VMW, CMG, NTES, CRM, WMT, TSL
Moving Above 30 DMA = 1
SPG
Moving Below 30 DMA = 0

Staying Below 30 DMA
BYI, CHL, CSTR, FCX, FDX, HAS, HSY, LXK, NDAQ, SINA, UPS, VOD, WLT, A, BUCY, CAT, DE, GR, IPI, PCP, RMBS, UNP, X, AKS, AMX, CAM, FLS, GME, GS, MA, NYX, SNDK, SWK, URE, BA, CRUS, ACN, AIV, ATI, CREE, DECK, DHR, DOW, FAS, STI, TIE, UAUA, UCO, USO, V, DLR, ICE, USD, PNC, SWN, ZION, UNG, VECO, WFMI, NETL, SKX, AMD, JEC, NTRI, ESI, BAC, MHS, WHR


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