COMPQ and RUT Rise While SPX Pauses...

The SPX formed a dragonfly doji pausing its support bounce that started Wednesday.  The SPX closed at 1,197, down -1.89 or -0.16%, the COMPQ moved up +13.90, the INDU pulled back -24.97 and the RUT finished +2.97 on Monday. 

                                    

Breadth weakened from Friday but was still positive as advancers led decliners 1.04 to 1 on the NYSE and 1.02 to 1 on the NASDAQ…

Exchange       NYSE          NASDAQ

Advancers      1,526              1,350

Decliners        1,467              1,314

Index Direction      Confirmation

VIX       Up                   Yes – SPX

SOX     Up                   Yes – COMPQ

Leading stocks on Monday included GMCR, CRUS, NFLX, FFIV, SNDK, RVBD, CSTR, CMG, CAKE, ARUN, FAZ, LVS, NETL, VECO, SOHU, PCLN, INFA, UNG, CRM, DECK, LXK, USD, WFMI, GES, ATI, VMW, BYI, GME, HSY, AKAM, CLF, AKS, SINA, HLF, BA, RMBS, POT, MHS, FDX, URE, AGU, NTRI, CREE

Losing stocks included GS, FAS, BAC, ZION, TSL, V, NDAQ, JEC, UNP, ICE, STI, WHR, PNC, HAS, WLT, TBT, CAM, DE, NYX, X, AMD, UCO, SWN, ESI, DOW, CAN, ATW, AMX

Interest rates moved lower, bonds inched higher, the Euro moved lower and the SOX closed higher +1.10% on the first day of this holiday shortened trading week.  The VIX rose +0.33 to close at 18.37.

Five of nine sectors moved higher and XLP was unchanged on Monday with Technology XLK +0.58% and Consumer Discretionary XLY +0.47% leading all other sectors. 

All four indexes closed above their 30 DMA for the third day in a row on Monday.  The SPX and INDU experienced an early pull back and then recovered in the afternoon.  The COMPQ and RUT were relatively stronger all day.  The SOX is also leading the NDX and technology stocks.

Look at the strength of Monday's leading NDX stocks SNDK, AMZN, CTXS, PCLN, AAPL, WYNN, BRCM, CELG, ALTR, VRSN and ILMN.  Then look at the NDX losing stocks from the list below.  Selectivity has been key in decision making since the beginning of earnings season in mid October.

Other strong NASDAQ stocks include NFLX, FFIV, SNDK, RVBD, CSTR, ARUN, VECO, DECK, WFMI, INFA and AKAM.

The SPX continues to lag the COMPQ and RUT as Financial stocks XLF continue to lag other sectors.

Continue to trade with the trend and simultaneously be prepared for any break of support.

SPX

Resistance: 1,200, 1,209, 1,220

Support: 1,190, 1,182, 1,170

Enter bullish trades with a bounce off support and a break above the high of the low day or a break out of horizontal resistance.  Thursday was an entry signal for many stocks.

Look for break of short term support for bearish entry signals or a bounce down from the 30 DMA.

The short term 3 day trend is up.
The two-month trend is up.
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 +6.63 – large white candle close above 30 DMA

QCOM -0.15– black spinning top

GOOG +0.39 – white spinning top at gap support

BIDU +0.28 – doji above 30 DMA

NDX 100 stocks stronger than the NDX include SNDK, AMZN, CTXS, ADSK, ISRG, PCLN, AAPL, WYNN, BRCM, INFY, CELG, ALTR, VRSN, ILMN and FAST.

Stocks weaker than the NDX: VMED, STX, FSLR, HSIC, EXPE, QGEN, NIHD, SYMC, GILD, HOLX, VOD, CMCSA, TEVA, PCAR and CTAS.

Stocks to Watch on Tuesday
Holding Above 30 DMA
HLF, PCLN,  LVS, CMG, SINA, AIV, CAKE, CAM, DHR, UNP, WLT, A, ATW, SLB, NDAQ, USD, AMD, DECK, GR, VECO, CSTR, RVBD, TBT, WFMI, NFLX, PNC, BYI, INFA, MHS, NETL, CRM, FFIV, ARUN, SWN, CAT, POT, GME, NTRI, X, CREE, BUCY, ESI, GES, HAS, MCD, UNG, AIV, AMX, ARUN, CLF, CRM, DE, DHR, DOW, FCX, INFA, MA, MOS, UAL, VMW, AKAM, AMD, HANS, RMBS, SNDK
Moving Above 30 DMA = 6

AKS, ATI, CRUS, FAZ, GMCR, SPG
Moving Below 30 DMA = 3

GS, ICE, JEC

Staying Below 30 DMA
 CF, NTES,  FAS, IPI, LDK, UCO, ZION, AGU, BAC, URE, V, ACN, CHL, FDX, NYX, PCP, STI, SWK, TSL, BA, HSY, POT, ESI, SKX, WHR, LXK, TIE, TLT, DLR

Intermediate Term Market Trend: Up – 2 months
Short Term Market Trend: Up