SPX Closes Below the Low of the High Day...Short Term Trend Neutral...

The SPX closed down -9.85 or -0.81%, the COMPQ fell -17.07, the INDU fell -60.09 and the RUT fell -10.79 on Tuesday.

Breadth was negative on Tuesday as decliners led advancers by 2.69 to 1 on the NYSE and 2.52 to 1 on the NASDAQ…

Exchange     NYSE    NASDAQ
Advancers       818          760
Decliners      2,207       1,920

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

Leading stocks on Tuesday included PCLN, FAZ, TBT, UNG, MOS, SWN, NFLX, ACN, WFMI, VMW, INFA, ATW, POT, CF, DEC, CRM

Losing stocks included URE, SOHU, FAS, AKS, SPG, NTES, WLT, ATI, SNDK, DLR, NYX, CLF, CRUS, AMD, AIV, CAKE, AMX, BAC, WHR, RVBD, FCX, CSTR, PNC, FDX, VECO, TSL, ZION, UCO, TLT, DHR, SINA, FFIV, ARUN, A, UAL, ICE, CREE, USD, HANS, BUCY, UNP, VOD, DOW, GME, GS, SWK, CAT, BA, NETL, HAS, LVS, MHS, NDAQ, HLF, CHL, SLB, SKX, CMG, STI, X, DE

Interest rates rose, bonds moved lower, the Euro fell and the SOX moved down -1.16%. The VIX moved up +0.79 to close at 19.08.

All nine sectors moved lower on Tuesday with Financials XLF -1.87% and Materials XLB -1.76% leading all sectors lower.

The SPX closed below the low of the high day on Tuesday which is an exit signal for some short term traders. The SPX did hold above last Thursday’s S1 level so the pullback did not break that short term support level.

An initial pull back on many charts occurred on Tuesday which in the current up trend can be the beginning of a new bull flag on charts recently making higher highs. Check the charts on our Losing stocks list above to see this pattern...

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

SPX
Resistance: 1,220, 1,234, 1,250
Support: 1,209, 1,200, 1,190

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.

Tuesday was an exit day on many charts for bullish short term traders that exit with a close below the low of the high day. Wait to enter a bearish signal for a close below of the low of the high day.

The short term 4 day trend is neutral.
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 -2.54 – bearish engulfing
QCOM +0.12 – spinning top
GOOG -1.95 – spinning top
BIDU -1.21 – black candle, still test of support

NDX 100 stocks stronger than the NDX include LOGI, PCLN, WCRX, YHOO, HOLX, NTAP, XRAY, FWLT, DELL, CTSH, ADBE, BIID, PPDI, MSFT and LLTC.

Stocks weaker than the NDX: AKAM, NIHD, LRCX, STX, RIMM, EXPE, WYNN, JBHT, PCAR, SHLD, HANS, STLD, SIAL, XLNX and EXPD.

Stocks to Watch on Wednesday
Holding Above 30 DMA
HLF, PCLN, AGU, MCD, LVS, CMG, FCX, SINA, VOD, AIV, CAKE, CAM, DE, DHR, DOW, UNP, URE, WLT, A, HAS, IPI, ICE, ATW, SLB, ACN, AMX, NDAQ, UAL, USD, MA, AMD, V, ATI, DECK, GR, UCO, CF, GS, SPG, HANS, MOS, VECO, CSTR, RVBD, TBT, WFMI, NFLX, NTES, PCP, PNC, BYI, INFA, MHS, NETL, CRM, FFIV, GMCR, ARUN, SWN, CAT, CLF, POT, JEC, FAS, GME, NTRI, X, SNDK, CHL, CREE, RMBS, STI, TSL, GES, UNG, VMW
Moving Above 30 DMA = 0

Moving Below 30 DMA = 8
AKS, BA, BAC, BUCY, FDX, NYX, SWK, ZION
Staying Below 30 DMA
HSY, POT, ESI, FLS, SKX, WHR, LXK, TIE, FAZ, CRUS, TLT, DLR

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