Light Volume Trading...SPX Closes Higher as RUT Makes New High Close...

Stocks opened lower and sold off early before finding support and closing slightly higher.  The SPX closed at 1,257.54, up +0.77 or +0.06%.  Each of the broad indexes traded in a very narrow range on light volume and closed above their 10 DMA.  SPY and IWM traded fewer shares than they did on Thursday.  DIA and QQQQ had slightly increased volume.

(click image to enlarge)

SPX white spinning top at resistance

INDU potential hanging man

COMPQ white spinning top, fractional close above the low of the high day

RUT new high close

Breadth strengthened on Monday as advancers led decliners led 1.25 to 1 on the NYSE and 1.39 to 1 on the NASDAQ…

Exchange       NYSE          NASDAQ

Advancers      1,651              1,551

Decliners        1,313              1,109

(click image to enlarge)

Index Direction     Confirmation

VIX      Up                 No – SPX

SOX    Up                 Yes – COMPQ

Leading stocks on Monday included V, MA, FAS, VMW, RMBS, STI, A, URE, SPG, BAC, DECK, ZION, NYX, GS, NETL, TLT, SNDK, INFA, ICE, AIV, BYI, MOS, SINA, CSTR, SKX, F, UNG, WHR, NDAQ, PNC, RVBD, FCX, FLS, USD

Losing stocks included ESI, LDK, CMG, FAZ, TIE, TBT, CREE, UCO, GMCR, PCP, CRM, GES, AKS, FWLT, WLT, AGU, MCD, ATW, ATI, CAM, HANS, CF, HSY, BA, CAT 

Interest rates pulled back on Monday and bonds moved higher.  The Euro closed up 52 pips at 1.3163 at 5 pm ET. 

The SOX rose +0.52, closing at 412.27 on Monday.  The VIX rose +1.20 and closed at 17.67.

Five of nine sectors moved higher on Monday with Financials XLF +0.88% and Technology XLK +0.20% leading all sectors. 

Moves on Monday

Continuation – CF, GME, FAS, FLS, FCX, ZION, STI, WFC, BAC, XLF, SWK, WLT, NUE, STLD, IPI, A, DHR

Resistance Breakout – URE, NYX

Bull Flag Bounce – SNDK, SPG, DECK, ICE, NYX, GS, TLT, UNP, BYI, VMW, C

MACD Divergence Bounce – LDK, TSL, JASO

Support Bounce – V, MA, RMBS, UNG, BIDU

Bear Flag Break –

Break of Support –

Look at these charts on our Bull Flag Setups and Horizontal Breakout Setups...

Setup Charts to Watch

Bull Flag Setups – X, LVS, AKS, CAT, DE, AZO, GOOG, JEC, GR, PNC, ILMN, FFIV, HSY, SINA, CLF, ATI, NDAQ, F, WFMI, GES, WYNN, AMD, AKAM, ACN, TBT, CREE, NETL, USD, CRUS

Horizontal Breakout – VMW, MOS, WHR, GS, ICE, AIV, C, TLT, SLB, AGU, NTRI, ATW, DOW

MACD Divergence – CSTR

Bear Flag Setups – SKX

Horizontal Support Breakout – CMG, CAKE, HAS, NFLX

Continue to trade with the trend of the chart you are trading.

SPX

Resistance: 1,256, 1,281

Support: 1, 241, 1,220, 1,209

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.

Enter bearish trades on a break of short term support or a bounce down from the 30 DMA.

The short term 3 day trend is up.
The six-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 +1.08 –spinning top above recent resistance

AMZN -0.45 – spinning top at 10 DMA

NFLX –4.57 – doji at horizontal support

QCOM +0.17 – white spinning top above recent resistance

GOOG -1.85 – doji in pullback forming bull flag

BIDU -0.03 – white candle at support

NDX 100 stocks stronger than the NDX include CSCO, STX, SYMC, ERTS, MCHP, LRCX, SNDK, SRCL, ATVI, CERN, FLIR, CTXS, AMAT, XLNX and LLTC.

Stocks weaker than the NDX: EXPE, NFLX, MU, TEVA, NWSA, YHOO, APOL, PCLN, MRVL, JOYG, WYNN, BBBY, MSFT, CEPH and DTV.

Stocks to Watch on Tuesday
Holding Above 30 DMA
SINA, CAM, WLT, ATW, SLB, NDAQ, USD, DECK, GR, RVBD, BYI, CAT, X, CREE, GES, HAS, CLF, INFA, VMW, SNDK, CRUS, FCX, FDX, AKS, A, AMD, DHR, DOW, FLS, GME, ICE, PNC, TBT, UCO, DE, FAS, JEC, STI, SWK, WHR, ZION, ACN, BAC, NYX, ESI, IPI, HSY, NTRI, ATI, CF, PCP, HANS, AIV, GS, URE, AGU, HLF, MOS, POT, UNP, BA
Moving Above 30 DMA = 2

TSL, SPG

Moving Below 30 DMA = 0

Staying Below 30 DMA
CRM, MHS, NETL, CAKE, TIE, MA, SKX, V, CSTR, UNG, VECO, ARUN, CMG, RMBS, SOHU, GMCR, MCD, SWN, AMX, LVS, UAL, FAZ, TLT, NTES, LDK, CHL, LXK, DLR

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