SPX Holds Support Forms Hammer Candle Pattern...

DJIA                  10,302.01    -1.14    -0.01%
SP500                 1,079.38   +0.13   +0.01%
COMPQ               2,181.87   +8.39   +0.39%
Russell 2000      615.49 10   +5.61   +0.92%

Exchange     NYSE     NASD
Advancing    1,888      1,643
Declining      1,099      1,020

Oil             $75.24    -0.15
Gold     $1,224.50   +9.60
SOX          324.26   +1.52
VIX             26.10    -0.14

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

Leading stocks on Monday included CSTR, GMCR, NFLX, CLF, VECO, CHL, SNDK, TSL, AMD, ICE, USD, IPI, LVS, CMG, LXK, CAM, GME, HLF, UAUA, TIE, DE, AKS, VMW, NETL, PNC, WFMI, VI, FCX, AMX, POT, CAT, X, GES, CRUS, WHR

The SPX opened lower made a lower low at 1,069 and then rallied to close fractionally higher at 1,079.38 forming a hammer pattern. Monday’s action did NOT confirm Friday’s inside day as a potential reversal day. So traders will wait for Tuesday to look for a break of a high of the low day.

INDU = doji
SPX = hammer
COMPQ = piercing line

NFLX, LVS, CHL, CAM, VMW, POT, CTXS and IPI moved higher.

PCLN, MOS, AKAM, AGU and GR while pulled back from Friday’s close.

CAT, CLF, DE, GME, GMCR, HLF, NTES, RVBD, VOD, MICC, QCOM, BIDU, JOYG gave support bounce entry signals on Monday with a break above the high of the low day.

Support Bounce Setups for Tuesday: NYX, GS, FLS, GES, PCP, SWK, BUCY, FFIV, HAS, CRUS, CRM, MCD, X, WMT, WLT, FCX, URE, UNP, SPG, CMG, LXK, UAUA, CAL, TIE, DLR, UPS, FDX, SINA, NDAQ

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

N100 Flags: CTSH, INTU, EXPD, EXPE, WYNN, GOOG, LOGI, ILMN, AMZN, HOLX

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

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

Continue with bearish trades that continue to make new lows. Exit bearish trades with a break above the high of the low day according to your rules.  Move stops to protect profits if a bounce occurs.

The VIX fell -0.14 to 26.10 confirming Monday’s move down and staying above the benchmark 25 level.

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 -1.46 – bullish harami, inside day again
QCOM +0.69 – bullish engulfing confirms inverted hammer, bullish harami inside day gap support bounce
GOOG -0.76 – spinning top did not confirm Friday’s bullish harami, inside day
BIDU +1.52 – bullish engulfing confirming Friday’s inside day in bull flag

NDX 100 stocks stronger than the NDX include: APOL, JOYG, WCRX, CSCO, EBAY, ERTS, DISH, MICC, BIDU, QCOM, FISV, STLD, VRSN, INTC and LOGI.

Stocks weaker than the NDX: RIMM, NVDA, FLEX, ADBE, ISRG, AMGN, ADSK, BRCM, GILD, HOLX, PCLN, GRMN, AKAM, ILMN and SBUX.

Stocks to Watch on Tuesday
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
Moving Above 30 DMA = 2
CMG, CSTR
Moving Below 30 DMA = 5
BYI, CRM, UNP, URE, WMT
Staying Below 30 DMA
CRUS, SWK, ACN, BA, GME, TSL, A, AIV, AKS, AMX, ATI, CREE, DECK, DHR, DOW, FAS, RMBS, 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: Down