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 – COMPQLeading 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, UTXMoves 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, NKESPX
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.
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
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
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
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
Short Term Market Trend: Neutral
5 comments:
Thanks Dave for keeping me on track
why is the DOW a hang man and the SPX a hammer? the SPX is near resistance as it left support with a hammer, followed by an inverse hammer last Thursday?
Confused - Thanks Dave.
Read all your blog very carefully today. Just wanted to say thank you so much for putting it up each day. It is a real time example of discipline that all of us can emulate.
Anon/Confused,
Great Question!
Language and Context...
Many traders say they want to see the charts with Dave's eyes...
First, I did NOT write the INDU was a hang man...what did I write?
There is a HUGE difference between what I wrote and what you wrote and therein lies much of your confusion.
Second, the INDU recently broke through what and is in what kind of pattern?
The SPX recently bounced off of what and is in what kind of pattern?
Think through the questions I have posed and then write your answer in theses comments.
2011 the best year ever!
Dave
Hey
visiting this blog is our real pleasure. Should like to thank admin for sharing such a useful information and starting this thread in addition to that we suggest traders not to panic when Nifty is in profit booking state. Investors and traders should understand that in volatile stock market conditions they should switch to swing trading.
Good Day
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