Futures traded higher overnight and the SPX on Tuesday opened up above horizontal resistance and sold off during the first 45 minutes and then rallied until about 2:40 pm ET when the SPX sold off 10 points going into the close. The SPX closed at 1,223, up +0.63 or +0.05%. The COMPQ moved up +3.57, the INDU fell -3.03. The RUT closed up +8.00 making another new high close.
(click image to enlarge)
Breadth strengthened and turned positive on Tuesday as advancers led decliners 1.01 to 1 on the NYSE and 1.27 to 1 on the NASDAQ…
Exchange NYSE NASDAQ
Advancers 1,511 1,497
Decliners 1,493 1,172
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Index Direction Confirmation
VIX Down Yes – SPX
SOX Down No – COMPQ
Leading stocks on Tuesday included GMCR, TBT, DE, AMD, CAKE, AKAM, NTRI, SWK, DLR, ACN, DHR, CAT, A, X, PNC, MCD, WHR, TSL, GME, MHS, HAS, CHL, DOW, FCX, FLS, CREE, URE, NYX
Leading stocks on Tuesday included GMCR, TBT, DE, AMD, CAKE, AKAM, NTRI, SWK, DLR, ACN, DHR, CAT, A, X, PNC, MCD, WHR, TSL, GME, MHS, HAS, CHL, DOW, FCX, FLS, CREE, URE, NYX
Losing stocks included UAL, CAM, LDK, ARUN, LVS, DECK, MA, UCO, NTES, SLB, TLT, CF, UNG, NFLX, V, RVBD, AGU, IPI, RMBS, WLT, FFIV, VMW, ICE, POT, ATI, CLF, ESI, CSTR, SWN, SKX, PCLN, HSY, VECO, AMX, PCP, FDX, GS, GES, NDAQ, HLF, BAC, F, BA, ZION
Interest rates rose, bonds moved lower but rallied from their daily lows, the Euro fell and the SOX pulled back -0.06% closing at 411.51 on Tuesday. The SOX is a leading group at this time. The VIX moved down -0.03 to close at 17.99, its lowest close since April 26.
Seven of nine sectors moved higher on Tuesday with Consumer Staples XLP +0.56% and Industrials XLI +0.27% leading all sectors.
The SPX and INDU again closed at horizontal resistance after moving above resistance during the day. The COMPQ closed just above its horizontal resistance.
The RUT, SOX and TRAN again closed above horizontal resistance and the RUT finished the day with a new high close maintaining the probability that the other broad indexes will ultimately break out to new highs.
Looking for strong stocks? Look at the current leaders already above horizontal resistance, and those gaining strength which moved above their 30 DMA this week and look at the RUT, SOX and TRAN. Leading stocks today and NDX leaders can also be good candidates.
Charts to Watch - Setups
Bull Flag Setups – CMG, FDX, HANS, ICE, RMBS, SKX
Horizontal Breakout – ATW, CRM, CSTR, GR, UNG, CRUS, CF, AIV, VMW, AKA, AMD, AKS, A, DHR, PNC, TBT, UCO, SWK, WHR, SOHU, VECO
Potential MACD Divergence - HSY
Potential MACD Divergence - HSY
Bear Flag Setups – GOOG, NTRI
Continue to trade with the up trend and look for a potential break of horizontal resistance.
SPX
Resistance: 1,220, 1,241, 1,256
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. Thursday was an entry signal for many stocks.
Wait to enter bearish trades for break of short term support 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.
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 -1.94 – bearish engulfing at resistance in sideways channel
AMZN -1.28 – dark cloud cover
QCOM +0.14 – spinning top near resistance in consolidation
GOOG +8.78 – spinning top in potential bear flag
BIDU -0.55 – bearish engulfing of spinning top at short term resistance
NDX 100 stocks stronger than the NDX include YHOO, NVDA, JBHT, WCRX, PAYX, STX, FISV, EXPD, CTXS, EBAY, GOOG, QGEN, APOL, GILD and FAST.
Stocks weaker than the NDX: ISRG, GRMN, DTV, FSLR, RIMM, JOYG, SHLD, WYNN, ATVI, ILMN, FLIR, ORLY
Stocks to Watch on Wednesday
Holding Above 30 DMA
HLF, PCLN, CMG, SINA, CAKE, CAM, UNP, WLT, ATW, SLB, NDAQ, USD, DECK, GR, VECO, CSTR, RVBD, WFMI, NFLX, BYI, MHS, NETL, FFIV, SWN, CAT, X, CREE, GES, HAS, MCD, UNG, CLF, CRM, INFA, VMW, HANS, RMBS, SNDK, CRUS, GMCR, CF, AIV, AKAM, ATI, PCP, SKX, FCX, FDX, AKS, A, AMD, DHR, DOW, FLS, GME, ICE, MA, PNC, SPG, TBT, UCO, DE, FAS, GS, JEC, STI, SWK, URE, WHR, ZION, IPI, SOHU
Moving Above 30 DMA = 1
ACN
Moving Below 30 DMA = 2
Moving Below 30 DMA = 2
AGU, AMX, ARUN, LVS, POT, V
Staying Below 30 DMA
BAC, TIE, NTRI, UAL, FAZ, TLT, MOS, ESI, NTES, LDK, CHL, NYX, TSL, BA, HSY, LXK, DLR
BAC, TIE, NTRI, UAL, FAZ, TLT, MOS, ESI, NTES, LDK, CHL, NYX, TSL, BA, HSY, LXK, DLR
Intermediate Term Market Trend: Up – 2 months
Short Term Market Trend: Up
Short Term Market Trend: Up
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