SPX Bullish Harami as Stocks Bounce...

The SPX formed a bullish harami that closed two points under Friday’s R1, +9.78 at 1,286.12 on Monday.

SPX bullish harami
INDU bullish harami
COMPQ hammer, bullish harami
RUT bullish harami

Breadth strengthened on Monday as advancers led decliners 2.23 to 1 on the NYSE and 1.41 to 1 on the NASDAQ …

Exchange     NYSE     NASDAQ
Advancers    2,066       1,550
Decliners          925       1,096

Index   Chg.   Close   Direction   Confirmation
VIX      -0.51     19.53      Down        Yes – SPX
SOX   +1.90   440.51      Up             Yes – COMPQ

Leading stocks > +1% on Monday included SINA, UCO, SOHU, AMD, X, ICE, ATW, STI, CLF, JEC, PCX, HANS, SLB, URE, AIV, WLT, FAS, FCX, ATI, JNPR, DE, FWLT, POT, A, AKS, MCP, NETL, LVS, GLW, LDK, UNG, SWN, TIE, GES, MOS, CAM, CRUS, SPG, PCP, SWKS, CAT, TBT, TSL, DOW, DLR, UNP, GS, ARUN

Losing stocks < -1.0% included WHR, SNDK, FAZ, LCC, SLW, SKX, F, CRM UAL, DECK, LXK

Positives – SPX, VIX, NDX, SOX, TNX, AAPL, BIDU, breadth strengthened, broad sector strength, Euro, TLT weakness

Negatives –  SPX below R1, AMZN

Interest rates rose on Monday and bond ETF TLT closed down 70 cents. The Euro moved up 84 pips to 1.3692 at 5 pm ET.

Eight of nine sectors rose on Monday with Energy XLE +2.87% and Materials XLB +1.67% leading all sectors.

Earnings – continue to watch earnings releases this next week

Setup Charts to Watch on Tuesday

Bull Flag Setups – HPQ, MS, X, JECK JNPR, FWLT, AKS, MCP, LDK, TIE, SWKS, TSL, SMH


SPX
Resistance: 1,300
Support: 1,281 1,271, 1,256


The short term 3 day trend is down.
The six-month trend is up.
The twelve-month trend is up.


Trade with the trend of the chart you are trading.


Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.


Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.


AAPL +3.22 – piercing line
AMZN -1.50 – inside day spinning top
NFLX -3.90 – potential bearish harami following earnings gap up
QCOM +0.39 – hammer in bull flag
GOOG -0.63 – hammer
BIDU +2.09 – potential bearish harami, inside day


NDX 100 stocks stronger than the NDX include FSLR, ERTS, GENZ, PCAR, WFMI, CERN, WCRX, JOYG, SIAL, BIDU, CTSH, YHOO, CA, ADSK and QGEN.


Stocks weaker than the NDX: CHKP, SNDK, NFLX, RIMM, ISRG, BBBY, MCHP, FFIV, NIHD, MICC, SHLD, CTXS, AMZN, FLEX and DLTR.


Stocks to Watch on Tuesday
Holding Above 30 DMA
SINA, NDAQ, SMH, FWLT, PCX, CLF, CRUS, HOLX, DE, FAS, GLW, JEC, ACN, NYX, ATI, URE, DISH, POT, BA, SWN, TSL, DLR, HANS, HUM, LDK, NTES, CAM, SLB, TIE, MA, SPG, ESI, STI, CAT, DOW, MOS, NETL, SOHU, SWKS, ATW, SWK, TBT, UAL
Moving Above 30 DMA = 10
AIV, AKS, ICE, JNPR, PCP, UCO, UNG, UNP, WLT, X
Moving Below 30 DMA = 2
SKX, WHR
Staying Below 30 DMA
A, AGU, CMG, F, FDX, GMCR, IPI, LVS, LXK, MHS, PNC, SNDK, VECO, CF, DHR, HSY, TLT, V, BAC, CHL, MCP, ZION, ARUN, CRM, RVBD, VMW, FCX, GS, DECK, AMD, HLF, CREE, GME, SLW, GES, HAS, CSTR, MCD, FAZ


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

Dave's Insight:  Time to rate your performance for January.  How did your portfolio do in January compared with the following indexes? If you outperformed the SOX give yourself an A+, the INDU, NDX or SPX give yourself an A.

January
SPX 2.26%
NDX 2.89%
INDU 2.73%
SOX 6.97%

Futures Point to a Higher Open...

BMO – ES +5.75 and NQ +7.75 futures are higher about 60 minutes before the open in pre-market trading and point to a higher open …

TLT is down 43 cents and the Euro is up 124 pips in premarket trading and is above horizontal resistance…

NDX leaders AAPL, AMZN, BIDU and GOOG are higher in pre-market trading…NFLX and PCLN are lower in pre-market…

Dave’s Insight for Monday: Continue to follow your rules. Look for a potential support bounce after Friday’s large selloff. Look for resistance near Friday’s S1 level. Do a month end review of your results compared with your 2011 goal after the close today.

Continue to follow key earnings releases and the opportunities they create.

SPX
Resistance: 1,281, 1300
Support: 1,271, 1,256, 1,241

Quoting Down – CMG, SWK, VMW, TLT, NFLX, PCLN, TEVA, KLAC, GRMN, CTSH

Quoting Up – SOHU, WLT, PI, MA, CLF, POT, SINA, MOS, FCX, AGU, PCX, JEC, FDX, X, HUM, MCP, GS, CF, HANS, SWKS, CAT, SNDK, CRUS, JNPR, LXK, ATI, CRM, MCD, AIV, STI, FAS, GOOG, AAPL, GENZ, BIDU, MICC, CEPH, DTV, BRCM, SNDK, EXPD, QCOM, VOD, CELG, XLNX, ORCL

Dave is teaching an Advanced Options workshop today...

SPX Finds Sellers after Touching 1,300...

The SPX formed a large bearish engulfing that engulfed the bodies of the prior 10 days and closed -23.20 at 1,276.34 on Friday.

SPX bearish engulfing
INDU bearish engulfing
COMPQ bearish engulfing
RUT bearish engulfing


Breadth weakened on Friday as decliners led advancers 5.17 to 1 on the NYSE and 5.12 to 1 on the NASDAQ …

Exchange     NYSE       NASDAQ
Advancers        492            437
Decliners       2,547         2,241

Index     Chg.     Close     Direction Confirmation
VIX        +3.89      20.04         Up            Yes – SPX
SOX     -12.67    438.61        Down       Yes – COMPQ

Leading stocks > +0% on Friday included UCO, FAZ, SLW, PCX, CRM, RVBD, MOS, SOHU, SLB, TLT, CSTR, ATW, CF, SWK, CAM, POT

Losing stocks < -1.7% included F, LCC, ESI, FAS, LDK, TSL, SWKS, AKS, X, JEC, UALO, FDX, FWLT, ARUN, A, VECO, URE, LXK, HUM, AIV, IPI, NVDA, DECK, SINA, NDAQ, LVS, DISH, GES, NYX, TIE, CMG, CRUS, GMCR, HLF, PNC, CLF, JNPR, PCP, MHS, DE, SMH, SKX, NETL, UNP, ATI, BA, MCP, HAS, STI, MA, CREE

Positives – NFLX, long and intermediate term trends up

Negatives – SPX, VIX, NDX, SOX, RUT, TRAN, AAPL, AMZN, BIDU, GOOG, PCLN, breadth weakened, broad sector weakness, Euro

Interest rates fell on Friday and bond ETF TLT closed up 48 cents. The Euro moved down 127 pips to 1.3608 at 5 pm ET.

All nine sectors fell on Friday with Consumer Staples XLP -0.96% the strongest and Consumer Discretionary XLY -3.26% the weakest. Financials XLF -1.74% was the second strongest sector.

Markets sold off broadly on Friday following negative reactions to AMZN and F earnings. Only NFLX and VRSN rose in the NDX. More stocks are now trading below, 55, their 30 DMA in the NDX. Just 45 stocks still above their 30 DMA. We hope you moved your stops up and took profits according to your rules as we have guided you over the last two weeks.

Earnings – continue to watch earnings releases this next week

SPX
Resistance: 1,281, 1,300
Support: 1,271, 1,256, 1,241
The short term 3 day trend is down.
The six-month trend is up.
The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

AAPL -7.11 – bearish engulfing
AMZN -13.31 – gap down spinning top following earnings
NFLX +7.11 – large white candle following earnings gap up
QCOM -1.16 – black spinning top following earnings gap up
GOOG -15.80 – bearish engulfing
BIDU +1.10 – bearish engulfing, earnings Monday after the close

NDX 100 stocks stronger than the NDX include NFLX, VRSN, FLIR, ATVI, GENZ, CERN, HSIC and AKAM.

Stocks weaker than the NDX: SNDK, AMZN, CELG, CTRP, MRVL, EXPD, LRCX, BRCM, CEPH, BBBY, ADBE, SBUX, FLEX, MSFT and FAST.

Stocks to Watch on Monday
Holding Above 30 DMA
SINA, NDAQ, SMH, FWLT, PCX, CLF, CRUS, HOLX, DE, FAS, GLW, JEC, ACN, NYX, ATI, URE, DISH, POT, BA, SWN, TSL, DLR, HANS, HUM, LDK, NTES, CAM, SLB, TIE, SKX, MA, SPG, ESI, STI, CAT, DOW, MOS, NETL, SOHU, SWKS, ATW, SWK, TBT, UAL, WHR
Moving Above 30 DMA = 0

Moving Below 30 DMA = 21
A, AGU, AIV, AKS, CMG, F, FDX, GMCR, ICE, IPI, JNPR, LVS, LXK, MHS, PCP, PNC, SNDK, UNP, VECO, WLT, X
Staying Below 30 DMA
CF, DHR, HSY, UNG, TLT, V, BAC, CHL, MCP, ZION, ARUN, CRM, RVBD, UCO, VMW, FCX, GS, DECK, AMD, HLF, CREE, GME, SLW, GES, HAS, CSTR, MCD, FAZ

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

Futures Point to a Slightly Higher Open...AMZN is Down over $12...

BMO – ES +1.25 and NQ +4.00 futures are slightly higher just before the open in pre-market trading and point to a slightly higher open …

TLT is down 76 cents and the Euro is down 40 pips in premarket trading and is above horizontal resistance…

NDX leaders AAPL, GOOG, NFLX and PCLN are higher in pre-market trading…BIDU are near unchanged…AMZN is -12.67 in pre-market…

Earnings

Thursday

BA beats, lowers EPS

CAT beats, raises

CTXS beats, raises

LRCX beats, lowers

NFLX beat, EPS, raises,

QCOM beats, raises

SWK beats, raises

UTX beats, confirms

Dave’s Insight for Friday:  Write down in your trading journal what is the best action you took this week?  What is one thing you would do differently this week if you could?  If you would like to share what you wrote for others to benefit from, post in the Comments Section below.

Continue to follow key earnings releases and the opportunities they create.

SPX

Resistance: 1300, 1,311, 1,321

Support: 1,281, 1,256, 1,241

Quoting Down – AMZN, HUM, CMG, WLT, F, ACN, TLT, HLF, ZION, LVS, ATI, MA, SNDK, PCLN, ROST, SHLD, FAST, VOD, AMGN, NIHD, BBBY

Quoting Up – CRM, ISRG, NFLX, FFIV, GOOG, RVBD, CF, POT, SOHU, MOS, CAM, PCPC, FDX, SLB, VMW, TVT, MCP, FCX, WHR, CAT, CRUS, A, GS, DLR, NTES, HANS, SWKS, SIAL, AAPL, NTAP, CHRW, KLAC, ALTR, BRCM, VRTX, AKAM, JOYG, TEVA

SPX New High Close...NFLX Gaps to New High...AMZN Gaps Down in After-Hours...

The SPX formed a spinning top and made a new high close +2.91 at 1,299.54 on Thursday.

(click image to enlarge)

SPX spinning top new high close resistance breakout

INDU spinning top new high close

COMPQ white candle bounce to resistance

RUT spinning top bounce continuation

Breadth weakened on Thursday as advancers led decliners 1.29 to 1 on the NYSE and 1.06 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      1,696             1,369

Decliners        1,309              1,290

(click image to enlarge)

Index              Chg.    Close    Direction      Confirmation

VIX                 -0.49       16.15    Down             Yes – SPX

SOX              +8.34     451.28    Up                  Yes – COMPQ

Leading stocks > 1% on Thursday included CRUS, SWK, UAL, SWKS, CMG, AMD, POT, SOHU, ATW, NDAQ, WHR, URE, STI, SNDK, HUM, ICE, LCC, F, FAS, SINA, SMH, ZION, MCP, LVS, SKX, RVBD, HOLX, GLW, GS, DISH, NYX, NETL, UNP, HLF, DEC, DLR, ARUN  

Losing stocks < -1% included UCO, UNG, SLW, CLF, FCX, PCX, ESI, FAZ, X, VECO, GMCR, JEC, WLT, SLB, CAM, NTES, HSY, SWN, DHR, TIE, CREE, MCD

Positives – SPX, VIX, NDX, SOX, NFLX, PCLN, QCOM, BIDU, XLF leads sectors, sector strength, Euro, XLP lagging sector

Negatives – TNX, AMZN after hours, breadth weakened

Interest rates fell on Thursday and bond ETF TLT closed up 41 cents.  The Euro moved up 23 pips to 1.3735 at 5 pm ET. 

Six of nine sectors rose on Thursday with Financials XLF +0.88% and Consumer Discretionary XLY +0.79% leading all sectors.

Earnings

Thursday

BA beats, lowers EPS

CAT beats, raises

CTXS beats, raises

LRCX beats, lowers

NFLX beat, EPS, raises,

QCOM beats, raises

SWK beats, raises

UTX beats, confirms

SPX

Resistance: 1,300, 1,311, 1,321

Support: 1,281, 1,256, 1,241

The short term 3 day trend is up.
The six-month trend is up.
The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

 

AAPL -0.64 – spinning top near recent resistance

AMZN +9.06 – large white candle, -17.30 after hours following earnings

NFLX +27.84 – gap up white candle horizontal breakout

QCOM +3.04 – gap up white candle breakout

GOOG +0.29 – spinning top above hammer

BIDU +1.10 – white candle new high close at recent resistance

NDX 100 stocks stronger than the NDX include NFLX, MU, QCOM, AMZN, ALTR, AMAT, YHOO, PCLN, SNDK, CHKP, BBBY, STX, XLNX, CTXS and LINTA.

Stocks weaker than the NDX: LRCX, CTRP, DELL, CELG, GILD, ERTS, JOYG, ISRG, MYL, ATVI, VRTX, TEVA, SIAL, BIIB and PAYX.

Stocks to Watch on Friday
Holding Above 30 DMA
SINA, NDAQ, SMH, FWLT, PCX, CLF, CRUS, HOLX, A, DE, FAS, GLW, JEC,  ACN, NYX, ATI, URE, POT, BA, SWN, TSL, DLR, GMCR, HANS, HUM, LDK, NTES, CAM,  SLB, TIE, SKX, MA, SPG, ESI, STI, CAT, DOW, FDX, LXK, MOS, NETL, PCP, VECO, AIV, SOHU, SWKS, X, AGU, AKS, ATW, IPI, JNPR, PNC, SWK, TBT, UAL, UNP, WHR, WLT

Moving Above 30 DMA = 5

CMG, ICE, LVS, MHS, SNDK

Moving Below 30 DMA = 4

CF, DHR, HSY, UNG

Staying Below 30 DMA
TLT, V, BAC, CHL, MCP, ZION, ARUN, CRM, RVBD, UCO, VMW, FCX, GS, DECK, AMD, HLF, CREE, GME, SLW, GES, HAS, CSTR, MCD, FAZ

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

NFLX and POT Up Big...Futures are Mixed and Point to a Flat Index Open...

BMO – ES -1.75 and NQ -0.50 futures are lower one hour before the open in pre-market trading and point to a flat open …

TLT is up 2 cents and the Euro is up 41 pips in premarket trading and is above horizontal resistance…

NDX leaders AAPL, AMZN, GOOG, NFLX and PCLN are higher in pre-market trading…BIDU are near unchanged…NFLX is +24.00 in pre-market…POT is +6.00...

Earnings

Thu – BA, CAT, CTXS, LRCX, NFLX, QCOM, SWK, UTX

Dave’s Insight for Thursday:  Stay with the trend until it ends.

Continue to follow key earnings releases and the opportunities they create.

Moves on Wednesday

Continuation – GLW, IBM, XLNX

Resistance Breakout – FLIR, INTC, ACN, NVDA

Bull Flag Bounce – WLT, CLF, JOYG, SLB, BIDU, WYNN, GILD, CTRP, NTAP, ADSK, FLEX, WFT, OIH, NOV, TIE, PCX, FWLT, SWKS, HUM, F, PNC, SINA, MCP, GM, A, LLTC, FAS

MACD Divergence Bounce – GME

Setup Charts to Watch on Thursday

Bull Flag Setups – HPQ, SNDK, DISH, HSY, MS, LDK, NYX, ESI, UNP, UNG, BK, SID, MHS, AMD

Breakout Setups – NVDA, TIE, HANS, DE, SMH, DTV, NDAQ, MYL

MACD Divergence – DECK, GES, HAS, NKE, HNZ

SPX

Resistance: 1300

Support: 1,281, 1,256, 1,241

Quoting Down – ARUN, PCP, SINA, CMG, CAN, GMCR, TLT, ATI, SBUX, LRCX, RIMM, TEVA

Quoting Up – NFLX, POT, CF, CAT, FCX, SWK, MOS, AGU, DE, WLT, IPI, RVBD, BA,CRUS, PCX, UAL, FDC, STI, MCP, FWLT, SWKS, CSTR, CREE, TBT, LVS, SNDK, MCD, QCOM, CTXS, AMZN, CHKP, JOYG, FFIV, SYMC, BRCM, AKAM, PAYX, WYNN, PCLN, GOOG, MY, CTSH, CTRP

SPX New High Close as Energy and Materials Stock Lead...

The SPX formed a white candle and made a new high close one point higher that its high on January 18 to close +5.45 at 1,296.63 on Wednesday.

(click image to enlarge)

SPX white candle confirmed hammer closed at resistance

INDU spinning top did not confirm potential hanging man, new high close

COMPQ white candle bounce in bull flag

RUT large white candle support bounce closes above 30 DMA

Breadth strengthened on Wednesday as advancers led decliners 2.25 to 1 on the NYSE and 3.08 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      2,098             2,016

Decliners           929                654

(click image to enlarge)

Index              Chg.    Close    Direction      Confirmation

VIX                 -0.95       16.64    Down             Yes – SPX

SOX              +3.82     442.94    Up                  Yes – COMPQ

Leading stocks > 1% on Wednesday included ATI, PCX, TIE, CLF, WLT, JEC, UAL, JNPR, SLW, CAM, RVBD, AKS, SLB, SWKS, SOHU, FWLT, IPI, MOS, ARUN, X, FCX, POT, CRM, SWN, UCO, CF, SNDK, ATW, TBT, GLW, F, NVDA, LVS, DECK, VECO, AGU, DE, NETL, GMCR, VMW, CAT, HANS, CAN, UNP, WHR, HUM, NTES  

Losing stocks < -1% included TSL, BA, LDK, MCP, HSY, CMG, DISH, DLR, TLT, MHS, ZION

Positives – SPX, VIX, NDX, SOX, TNX, AAPL, BIDU, breadth and sector strength, Euro, XLV, XLP, XLU were lagging sectors

Negatives – AMZN, GOOG, NFLX, PCLN

Interest rates rose on Wednesday and bond ETF TLT closed down -1.40.  The Euro moved up 31 pips to 1.3712 at 5 pm ET. 

Five of nine sectors rose on Wednesday with Energy XLE +2.40% and Materials XLB +2.12% leading all sectors.

Earnings

Wed – AMZN, MSFT, SNDK, KLAC, MMM, PG, T, F, RVBD, CRUS, GMCR, BMC, PCP, UAL

Thu – BA, CAT, CTXS, LRCX, NFLX, QCOM, SWK, UTX

Moves on Wednesday

Continuation – GLW, IBM, XLNX

Resistance Breakout – FLIR, INTC, ACN, NVDA

Bull Flag Bounce – WLT, CLF, JOYG, SLB, BIDU, WYNN, GILD, CTRP, NTAP, ADSK, FLEX, WFT, OIH, NOV, TIE, PCX, FWLT, SWKS, HUM, F, PNC, SINA, MCP, GM, A, LLTC, FAS

MACD Divergence Bounce – GME

Setup Charts to Watch on Thursday

Bull Flag Setups – HPQ, SNDK, DISH, HSY, MS, LDK, NYX, ESI, UNP, UNG, BK, SID, MHS, AMD

Breakout Setups – NVDA, TIE, HANS, DE, SMH, DTV, NDAQ, MYL

MACD Divergence – DECK, GES, HAS, NKE, HNZ

SPX

Resistance: 1,300

Support: 1,281, 1,256, 1,241

The short term 3 day trend is neutral.
The six-month trend is up.
The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

 

AAPL +2.45 – large white candle, support bounce continuation in bull flag

AMZN -1.31 – spinning top inside day, earnings on Wednesday

NFLX -3.71 – white candle confirms Monday’s piercing line, close above high of low day

QCOM +0.34 – hammer in bull flag

GOOG -3.41 – bullish engulfing pattern confirms Monday’s hammer

BIDU +2.06 – white candle does NOT confirm Monday’s long tailed hammer

NDX 100 stocks stronger than the NDX include GILD, JOYG, WYNN, TEVA, SNDK, NTAP, CTRP, LRCX, CTXS, NVDA, ISRG, KLAC, BIDU, NIHD and FLIR.

Stocks weaker than the NDX: CA, SPLS, ALTR, YHOO, ADP, NFLX, SBUX, EXPE, PCLN, SHLD, AMGN, VRTX, HSIC, WFMI and AMZN.

Stocks to Watch on Thursday
Holding Above 30 DMA
SINA, NDAQ, SMH, FWLT, PCX, CLF, CRUS, HOLX, A, DE, FAS, GLW, JEC,  ACN, NYX, ATI, URE, POT, BA, SWN, UNG, TSL, DLR, GMCR, HANS, HUM, HSY, LDK, NTES, CAM,  SLB, TIE, SKX, MA, SPG, ESI, STI, CAT, DHR, DOW, FDX, LXK, MOS, NETL, PCP, VECO, AIV, SOHU, SWKS, X

Moving Above 30 DMA = 13

AGU, AKS, ATW, CF, IPI, JNPR, PNC, SWK, TBT, UAL, UNP, WHR, WLT

Moving Below 30 DMA = 3

MHS, TLT, V

Staying Below 30 DMA
BAC, CHL, MCP, ZION, ARUN, CMG, CRM, RVBD, SNDK, UCO, VMW, FCX, GS, LVS, DECK, AMD, HLF, CREE, GME, ICE, SLW, GES, HAS, CSTR, MCD, FAZ

Added: JNPR, SLW

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

Futures Point to a Higher Open...

1:50 pm ET - Add BIDU to the NDX bull flag potential entry list...

1:40 pm ET - The SPX is setting up a potential horizontal breakout today...a successful breakout of 1,296 produces a new target of 1,320 with an approximate time frame of seven trading days...


11:45 am ET - There are some nice potential bull flag entries and setups in the NDX this morning: JOYG, WYNN, GILD, FLEX, CTRP, ADSK
Breakout - FLIR
Flag Setups - NVDA, SNDK, NTAP
Potential Trend Reversal Double Bottom - INTU 



BMO – ES +3.00 and NQ +5.50 futures are higher 15 minutes before the open in pre-market trading and point to a higher open …

TLT is down 20 cents and the Euro is down 10 pips in premarket trading and is above horizontal resistance…

NDX leaders AAPL, AMZN, BIDU, GOOG, NFLX and PCLN are higher in pre-market trading…BIDU and PCLN are near unchanged…

Earnings

Tue –

ALTR beat by 1 cent

DD adjusted EPS beats by 18 cents

AKS adjusted EPS beats by 14 cents

JNJ adjusted EPS meets consensus

TRV beats by 21 cents

VZ beats by 38 cents

X misses by 62 cents including 23 Forex loss

Wed – AMZN, MSFT, SNDK, KLAC, MMM, PG, T, F, RVBD, CRUS, GMCR, BMC, PCP, UAL

Thu – BA, CAT, CTXS, LRCX, NFLX, QCOM, SWK, UTX

Dave’s Insight for Wednesday:  Was Tuesday’s early price action price fluctuation or trend change?  Did you trade accordingly?  Post your response in the Comments Section at the bottom of this post. 

Continue to follow key earnings releases and the opportunities they create.

Moves on Tuesday

Continuation - IBM, HPQ

Resistance Breakout – INTC, ACN, NVDA

Bull Flag Bounce – HSY, DISH, SMH, SINA, MCP, GM, A, DE, LLTC, FAS

MACD Divergence Bounce – GME, HNZ

Setup Charts to Watch on Wednesday

Bull Flag Setups – MS, LDK, NYX, ESI,  ZION, ALTR, HANS, F, UNP, HUM, UNG, PNC, BK, SID, FWLT, PCX, TIE, WLT, CLF, MHS, JOYG, AMD

Breakout – DTV, XLNX, NDAQ, MYL

MACD Divergence – DECK, GES, HAS, NKE

SPX

Resistance: 1300

Support: 1,281, 1,256, 1,241

Quoting Down – CMG, BA, ISRG, PCP, MHS, MA, DLR, SOHU, SPG, GES, CA, SHLD, MICC, GILD, CTRP, LIFE, ALTR

Quoting Up – ATI, CRM, SINA, WLT, ILMN, AAPL, JOYG, WYNN, GOOG ESI, MCP, JEC, UAL, VECO, POT, A, CREE, CLF, RVBD, X, LDK, SNDK, SLB, AKS, TSL, URE, UNP, LVS, FDX,SWKS, VMW, DOW, FSLR, CERN, CHRW, FFIV, FAST, NFLX, ROST, INTU, AMZN, SNDK, TEVA, MYL, BRCM, APOL, LRCX, RIMM, SRCL, VOD, STX, NTAP, XLNX

SPX Holds as X and AKS Move Higher After Earnings...

The SPX formed a white hammer to close near unchanged +0.34 at 1,291.18 on Tuesday.  WMT, CSCO, VZ,, INTC, HD and IBM combined to keep the INDU near Monday’s new high close.

(click image to enlarge)

SPX white hammer in bull flag

INDU potential hanging man

COMPQ white candle at support in bull flag

RUT white hammer like spinning top confirms bullish harami below 30 DMA

Breadth weakened on Tuesday and stayed positive on the NYSE as advancers led decliners 1.15 to 1, but turned negative on the NASDAQ as decliners led advancers 1.17 to 1…

Exchange       NYSE          NASDAQ

Advancers      1,610             1,221

Decliners        1,389              1,436

(click image to enlarge)

Index              Chg.    Close    Direction      Confirmation

VIX                 -0.06       17.59    Down             Yes – SPX

SOX               -3.30     439.12    Down             No – COMPQ

Leading stocks > 1% on Tuesday included GLW, AKS, X, DLR, SWKS, DECK, HLF, URE, HSY, SOHU, AIV, HOLX, PCP, MA 

Losing stocks < -1% included LDK, TSL, RVBD, SNDK, VMW, UCO, CRM SINA, GS, AMD, ESI, UNG, FWLT, BAC, NYX, TBT, FCX, CAM, LVS, PCX, JEC, CLF, SWN, AGU, ATW, POT, WLT, UNP, ICE, SLB, IPI, CF, NDAQ, GMCR, TIE

Positives –SPX, VIX, NDX, AAPL, GOOG, NFLX, PCLN, Euro, strengthening bull flag price pattern

Negatives – SOX, breadth and sector weakness,  

Interest rates closed slightly lower on Tuesday and bond ETF TLT closed up 87 cents.  The Euro moved up 43 pips to 1.3681 at 5 pm ET. 

Four of nine sectors rose on Tuesday with Technology XLK +0.46% and Consumer Staples XLP +0.32% leading all sectors.

Earnings

Tue –

ALTR beat by 1 cent

DD adjusted EPS beats by 18 cents

AKS adjusted EPS beats by 14 cents

JNJ adjusted EPS meets consensus

TRV beats by 21 cents

VZ beats by 38 cents

X misses by 62 cents including 23 Forex loss

Wed – AMZN, MSFT, SNDK, KLAC, MMM, PG, T, F, RVBD, CRUS, GMCR, BMC, PCP, UAL

Thu – BA, CAT, CTXS, LRCX, NFLX, QCOM, SWK, UTX

Moves on Tuesday

Continuation - IBM, HPQ

Resistance Breakout – INTC, ACN, NVDA

Bull Flag Bounce – SWKS, HSY, DISH, SMH, SINA, MCP, GM, A, DE, LLTC, FAS

MACD Divergence Bounce – GME, HNZ

Setup Charts to Watch on Wednesday

Bull Flag Setups – MS, LDK, NYX, ESI,  HANS, F, UNP, HUM, UNG, PNC, BK, SID, FWLT, PCX, TIE, WLT, CLF, MHS, JOYG, AMD

Breakout – DTV, XLNX, NDAQ, MYL

MACD Divergence – DECK, GES, HAS, NKE

SPX

Resistance: 1,300

Support: 1,281, 1,256, 1,241

The short term 3 day trend is neutral.
The six-month trend is up.
The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

 

AAPL +3.95 – large white candle, support bounce continuation in bull flag

AMZN -0.15 – spinning top inside day, earnings on Wednesday

NFLX +2.78 – white candle confirms Monday’s piercing line, close above high of low day

QCOM +0.03 – hammer in bull flag

GOOG +8.83 – bullish engulfing pattern confirms Monday’s hammer

BIDU -0.47 – white candle does NOT confirm Monday’s long tailed hammer

NDX 100 stocks stronger than the NDX include TEVA, SHLD, CSCO, CTRP, NFLX, INTC, GOOG, EBAY, KLAC, MYL, PCLN, AAPL, BBBY, LIFE and FFIV.

Stocks weaker than the NDX: CTXS, SNDK, FSLR, NTAP, AKAM, NVDA, MXIM, RIMM, EXPD, ADSK, ESRX, ORLY, FLEX, ADBE and INTU.

Stocks to Watch on Wednesday
Holding Above 30 DMA
SINA, NDAQ, SMH, FWLT, PCX, CLF, CRUS, HOLX, A, DE, FAS, GLW, JEC,  ACN, NYX, ATI, URE, POT, BA, SWN, UNG, TSL, DLR, GMCR, HANS, HUM, HSY, LDK, MHS, NTES, CAM,  SLB, TIE, SKX, MA, SPG, ESI, STI, CAT, DHR, DOW, FDX, LXK, MOS, NETL, PCP, V, VECO

Moving Above 30 DMA = 5

AIV, SOHU, SWKS, TLT, X

Moving Below 30 DMA = 8

AGU, ATW, BAC, CHL, IPI, MCP, TBT, UNP

Staying Below 30 DMA
CF, SWK, WHR, ZION, PNC, WLT, ARUN, CMG, CRM, RVBD, SNDK, UCO, VMW, FCX, GS, LVS, UAL, DECK, AMD, HLF, CREE, AKS, GME, ICE, GES, HAS, CSTR, MCD, FAZ

Added: GLW

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