Solar Stocks Shine, NDX New High Close and RUT Bounces as SPX Hangs...

The SPX sold off and rallied from its low closing down -1.75 at 1,269.75 on Monday.  

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SPX inside day, potential hanging man barely confirmed hanging man

INDU hanging man barely confirmed hanging man

COMPQ white candle inside day did not confirm potential hanging man

RUT white candle inside day did not confirm potential hanging man

Breadth strengthened on Monday as advancers led decliners 1.05 to 1 on the NYSE and 1.22 to 1 on the NASDAQ…

Exchange       NYSE          NASDAQ

Advancers      1,548              1,462

Decliners        1,471              1,194

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Index  Chg.   Close   Direction     Confirmation

VIX      +0.40  17.54      Up                 Yes – SPX

SOX    +4.41  430.17    Up                Yes – COMPQ

Leading stocks > 1% on Monday included LDK, ARUN, AMD, DECK, UCO, SKX, TSL, UNP, CRUS, IPI, NETL, LXK, VECO, MHS, SNDK, NTES, PCX, DOWN INFA, USD, A, CLF, LVS, JEC, FCX, CREE, SINA, GES, BAC

Losing stocks < -1% included ESI, WLT, TIE, ZION, HUM CSTR, FWLT, V, AGU, CF, BYI, X, DHR, STI, MCD, SLB, POT, TBT, UNG  

Positives – NDX, SOX, RUT, EURO, Stronger advancers/decliners, AAPL, NFLX

Negatives –XLF, QCOM, AMZN, BIDU, GOOG

Interest rates moved lower on Monday and bonds closed slightly higher.  The Euro rose 45 pips to 1.2949 at 5 pm ET. 

LDK, +1.90, +18.22% which is in our watch list stocks below crossed above its 30 DMA on Friday as we posted and gapped higher this morning on raised guidance from the company.  We alerted you to the bounce before the open.  Solar stocks FSLR, SPWRA, TSL, CSIQ and JASO also moved higher.

Four of nine sectors moved higher on Monday with Industrials XLI +0.14% and Materials XLB +0.12% leading all sectors. 

After the close AA reported earnings of 24 cents vs. consensus of 19 cents and revenues of $5.78 billion vs. consensus of $5.68.  CEO sees aluminum growing 12% in 2011 on top of 13% in 2010.

Tues – INFY

Thu – INTC

Fri - JPM

Moves on Monday

Continuation – USD, LVS, BIDU, NETL, CRUS, F, GOOG, WYNN, VMW, DOW, GR, BYI, NUE, STLD, A 

Resistance Breakout – UNP, AMD, SNDK, PNC, ILMN, AMZN

Bull Flag Bounce – IPI, AMD, FCX

MACD Divergence Bounce –

Support Bounce – LDK, NFLX, FFIV, JASO, TLT, SPG

Bear Flag Break –

Break of Support – GES, AZO, ICE, GME, ATW, WFMI

Setup Charts to Watch

Bull Flag Setups –CF, WLT, BAC, WFC, POT, V, CAT, TBT, XLF, FAS, STI, GS, SLB, CLF, SWK, WHR, UNG, C, DHR, JEC, ZION, NDAQ, URE, FLS, ATI, DECK, NYX, AGU, AIV, MOS, AKS, X

Horizontal Breakout –DE, TSL, HSY, SINA, NTAP

MACD Divergence – CMG, CREE, CAKE, CSTR, AKAM

Bear Flag Setups –ACN, SKX

SPX

Resistance: 1,281, 1,300

Support: 1,256, 1, 241, 1,220

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 +6.33 – large white candle, new high close

AMZN -0.81 – potential hanging man

NFLX +8.58 – large white candle bounce support  and MACD bullish divergence

QCOM -0.04 – potential inverted hammer

GOOG -2.23 – potential hanging man barely confirms hanging man

BIDU +1.79 – spinning top, inside day, potential bearish harami

NDX 100 stocks stronger than the NDX include NFLX, NVDA, MXIM, LRCX, FFIV, ADBE, CTRP, KLAC, FSLR, EBAY, CTXS, AAPL, BRCM, NTAP and SNDK.

Stocks weaker than the NDX: APOL, CELG, SYMC, GILD, CHKP, YHOO, SPLS, AMAT, MSFT, INTU, VRSN, CEPH, MAT, MU and ATVI.

Stocks to Watch on Tuesday
Holding Above 30 DMA
SINA, WLT, NDAQ, USD, GR, RVBD, BYI, CAT, FWLT, PCX, CLF, INFA, VMW, SNDK, CRUS, HOLX, FCX, FDX, AKS, A, AMD, DHR, DOW, FLS, PNC, DE, FAS, JEC, STI, SWK, WHR, ZION, ACN, BAC, NYX, IPI, MCP, ATI, CF, AIV, GS, URE, AGU, MOS, POT, UNP, BA, SWN, UNG, ARUN, NETL, LVS, VECO, CRM, PCP, TBT, TSL, DLR, GMCR, HANS, HUM, HLF, HSY, UAL, LDK
Moving Above 30 DMA = 3

MHS, NTES, UCO

Moving Below 30 DMA = 4

ESI, SLB, TIE, X

Staying Below 30 DMA
CHL, CREE, DECK, GME, ICE, CAM, SPG, ATW, GES, TLT, HAS, CAKE, MA, SKX, V, CSTR, CMG, SOHU, MCD, FAZ, LXK

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