SPX Pauses Above S1...

DJIA                 10,636.38   -38.00   -0.36%
SP500                1,120.46     -5.40   -0.48%
COMPQ              2,283.52   -11.84   -0.52%
Russell 2000         655.66     -6.20   -0.94%

Exchange      NYSE   NASD
Advancing     1,186       951
Declining       1,835    1,713

Oil             $82.55 +1.06
Gold     $1,185.20 +1.80
SOX          351.25  -3.69
VIX             22.63 +0.62

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


Leading stocks on Tuesday included HLF, AKS, FAZ, NFLX, UCO, ATW, PCLN, WFMI, GR, USO, V, GMCR, TSL, LVS, CREE, CMG, X, SWN, UNP, CSTR, GS, MCD, AMX, NYX, VECO


On Tuesday the SPX paused and pulled back to Monday’s S1 level. Many stocks also paused after their recent support bounce or at horizontal resistance setting up either a return move bounce entry or horizontal breakout entry.

Potential horizontal breakout signals on Wednesday: CRM, LXK, PCLN, PCP, CAT, VMW, FAS, STI, GME, CAM, FCX, WLT, URE, AIV, AMX

Guidance:
SPX pulls back to its July 27 resistance and Monday’s S1 level and closes at 1,120...
Breakout return move test pattern…
The SPX holds above S1 and old short term resistance…
The VIX did confirm the lower close in the SPX, and stayed below 25.
Breadth was weaker as decliners led advancers 1.5 to 1 on the NYSE.
SPX price target is still 1,141…
Do you have return to breakout point rules for entry, that you should follow?

SPX
Resistance: 1,130, 1,141
Support: 1,115, 1,100, 1,086

Enter strong stocks up with a bounce off support (old resistance). Stay with stocks in a bounce continuation.

Wait for a break of the low of the high day for bearish entries.

The VIX rose +0.62 and closed at 22.63; it is well below the important 25 level confirming the current up trend since July 7.

The short term 3 day trend is up.

The two-month trend is neutral and is currently at 1,130 horizontal resistance area.  Watch for a potential horizontal breakout.
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 +0.08 – spinning top above S1
QCOM -0.30 – spinning top in bull flag bounce
GOOG -0.58 – spinning top in bull flag bounce
BIDU +0.19 – doji in trend continuation
NDX 100 stocks stronger than the NDX include: CTSH, HOLX, VRSN, AKAM, WYNN, VRTX, INFY, AMZN, PCLN, CEPH, CTXS, RYAAY, XRAY, IACI and HSIC.

Stocks weaker than the NDX: APOL, SPLS, STX, ATVI, LINTA, SHLD, NVDA, URBN, RIMM, PCAR, DISH, EBAY, FLEX, MRVL and BBBY.

Stocks to Watch on Wednesday
Holding Above 30 DMA
TLT, CRUS, GMCR, HANS, TSL, BUCY, CAT, CREE, CRM, HLF, PCLN, TIE, VMW, AGU, MCD, DE, GS, IPI, AKS, MOS, POT, CAM, VECO, ATW, FCX, FLS, GES, GME, PCP, UAUA, WLT, WMT, X, SWK, ACN, AIV, AMX, BA, CHL, CLF, DLR, FFIV, GR, LVS, SPG, UNP, URE, CMG, FAS, STI, WFMI, DECK, HAS, NYX, LXK, UNG, DHR, SKX, UCO, USO, ZION, ATI, CSTR, PNC, SNDK
Moving Above 30 DMA = 0


Moving Below 30 DMA = 3
DOW, NETL, USD
Staying Below 30 DMA
MA, SKX, AMD, BYI, V, A, JEC, NTRI, FAZ, NFLX, ESI, HSY, BAC, MHS, WHR, SWN, ICE

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