SPX Pulls Back Again...Still Above 1,040 Support...

DJIA           10,150.65  -140.73   -1.39%
SP500          1,048.92    -15.76   -1.47%
COMPQ        2,119.97   -33.66   -1.56%
Russell 2000   601.72    -15.04   -2.44%

Exchange   NYSE   NASD
Advancing     677      542
Declining    2,327   2,100

Oil          $73.63   -1.10
Gold   $1,236.20   -3.10
SOX        313.58   -8.18
VIX           24.45  +2.76

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

Leading stocks on Monday included FAZ, UNG, UAUA, ESI, FFIV, SNDK, HLF, AGU, AKS

After a strong up day on Friday the ES futures opened Sunday evening and moved higher reaching 1,072 late Sunday night. The ES sold off to 1,060 by the 9:30 ET open and then rallied three points to 1,063.

Look at these Charts

(click image to enlarge)

The cash SPX opened at 1,062.90 down just over two points from Friday’s close. From there the SPX trended down all day long in a series of six intraday bear flags closing at 1,048 at the 61.8% Fib retracement from Friday’s low.    

Look at these Charts

(click image to enlarge)

Guidance:

SPX

Resistance: 1,056, 1,071, 1,086

Support: 1,041, 1030, 101

1,041 has been a strong support area for a year and was resistance in October 2008.  Buyers have been at this level all but one time this year and this level still favors a potential bounce.  Stay prepared to trade in both directions. 

Look to enter bullish trades when a new bounce off support and a break above the high of the low day occurs.

Enter bearish setups with a new bounce down from resistance, bounce down from the 30 DMA or break of support

The VIX rose +2.76 to 27.21 moving above the benchmark 25 level and increasing the potential for a break of support.

The short term 3 day trend is neutral.
The three-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   +0.88 – inverted hammer confirms Friday’s dragonfly doji, harami

QCOM -0.35 – inverted hammer

GOOG -6.14 – black candle did not confirm Friday’s hammer like
BIDU   -2.13 – black candle

NDX 100 stocks stronger than the NDX include: GENZ, DELL, APOL, AAPL, SRCL, WCRX, HSIC, PDCO and SBUX.

Stocks weaker than the NDX: NVDA, LRCX, WYNN, ALTR, BRCM, ADSK, EXPE, BBBY, PCAR, PCLN, BIDU, MXIM, XRAY, XLNX and KLAC.

Stocks to Watch on Tuesday
Holding Above 30 DMA
TLT, HANS, HLF, PCLN, RVBD, AGU, MCD, POT, FFIV, LVS, NFLX, FAZ, VMW, CMG, NTES, CRM, TSL, CLF
Moving Above 30 DMA = 0

Moving Below 30 DMA = 8
BYI, CHL, FCX, HSY, SINA, SPG, VOD, WMT
Staying Below 30 DMA
GES, GMCR,CSTR, FDX, HAS, LXK, NDAQ, UPS, 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: Neutral