SPX Breaks 1,130 Resistance Moves to 1,142

INDU        10,753.62 +145.77   +1.37%
SPX           1,142.71   +17.12   +1.52%
COMPQ     2,355.83   +40.22   +1.74%
RUT              669.98   +18.54   +2.85%

Exchange      NYSE   NASDAQ
Advancers      2,490     2,151
Decliners           560       564

SOX        336.12   +1.77
VIX           21.50    -0.51
 
Index     Direction    Confirmation
VIX          Down         Yes – SPX
SOX         Up              Yes – COMPQ

Leading stocks on Monday included WHR, SINA, OWW, FAS, CRM, IPI, URE, ESI, PCLN, FFIV, NTRI, UCO, AMX, VECO, VMW, RVBD, DECK, WFMI, MHS, V, FLS, ZION, BAC, ACN, WLT, MA, CAM AIV, CRUS, JEC, CAT, UAUA, HLF, GR, SPG, FCX, LXK, VOD, PCP, CHL, SWK, NETL, USO, NFLX, DOW, DLR, HSY, DE

Losing stocks included FAZ, UNG, X, CREE, TBT, SNDK, TSL, PNC, NYX, AMD, ICE

SPX
Resistance: 1,148, 1,170
Support: 1,130, 1,115, 1,100

With the SPX at the key 1,130 resistance level and pivot point on Friday, buyers took control on Monday. The SPX broke above its 1,130 resistance for the first time since mid-May. The breakout was on a large white candle with breadth both in all nine sector ETFs rising, XLY and Financials XLF leading, and confirmation from the VIX.

Enter bullish trades with a breakout of horizontal resistance or a bounce off support and a break above the high of the low day. There are numerous stocks in our list that broke  horizontal resistance today.

Wait to exit short term trades according to your rules with a break below the low of the high day. Wait on bearish entry signals for a bounce down from resistance or a break of the low of the high day.

The VIX fell -0.51 to 21.50, and is still below the 25 benchmark level.

The short term 3 day trend is up.
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     +7.86 – large white candle on horizontal breakout
QCOM  +0.48 – white candle
GOOG +18.13 – large white candle rising to horizontal resistance
BIDU     +4.14 – large white candle horizontal breakout on rising volume

NDX 100 stocks stronger than the NDX include: FLEX, APOL, BIDU, GRMN, PCLN, GOOG, ISRG, NWSA, WYNN, PCAR, RYAAY, GILD, SBUX, AAPL and ESRX.

Stocks weaker than the NDX: RIMM, BRCM, MRVL, XLNX, HOLX, CSCO, SRCL, YHOO, BIIB, DTV and COST.

Stocks to Watch on Tuesday
Holding Above 30 DMA
HANS, HLF, PCLN, RVBD, AGU, MCD, POT, FFIV, LVS, NFLX, VMW, CMG, CRM, TSL, CLF, FCX, SINA, SPG, VOD, AIV, BUCY, CAM, DE, DHR, DLR, DOW, NYX, PCP, SWK, UNP, UPS, URE, WLT, WMT, A, BYI, GMCR, HAS, IPI, JEC, LXK, AKS, CAT, ICE, BAC, FAS, FDX, FLS, GS, MHS, ATW, STI, ACN, ATI, AMX, GES, PNC, RMBS, ZION, NDAQ, UAUA, USD, VECO, DECK, MA, NETL, TBT, ESI, GME, HSY, WFMI, GR
Moving Above 30 DMA = 5
CHL, FDX, HANS, NTRI, WHR
Moving Below 30 DMA = 2
PNC, X
Staying Below 30 DMA
CLF, NTES, TLT, UCO, USO, V, FAZ, CSTR, SNDK, BA, CRUS, CREE, TIE, SWN, UNG, SKX, AMD

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