SPX Pulls Back as Key NDX Stocks Rise...

The SPX formed a potential hanging man bearish harami closing -3.69 at 1,320.88 on Wednesday.

SPX potential hanging man, bearish haramiSPX
INDU potential hanging man
COMPQ potential bearish harami
RUT potential bearish harami

Breadth weakened on Wednesday as decliners led advancers 1.63 to 1 on the NYSE and 1.72 to 1 on the NASDAQ …

Exchange    NYSE     NASDAQ
Advancers   1,135           975
Decliners      1,854       1,683

Index   Chg.    Close   Direction   Confirmation
VIX      +0.06     15.67      Up             Yes – SPX
SOX    -3.30    457.60     Down        Yes – COMPQ

Leading stocks > +2% on Wednesday included NYX, JDSU, NDAQ, ICE, CF, AGU, DISH, SOHU, CMG

Losing stocks < -2.0% included PCX, WLT, CLF, SWN, FCX, TIE, X, ATI, SKX, JEC, CHL, NVDA, MHS

Positives – AAPL, AMZN, BIDU, NFLX, PCLN breakout, Euro

Negatives – potential bearish harami on SPX, INDU, COMPQ, RUT, breadth weakened, sectors weakened, TNX

Interest rates fell on Wednesday and bond ETF TLT rose 77 cents. The Euro moved up 103 pips to 1.3727 at 5 pm ET.

Seven of nine sectors fell on Wednesday with Consumer Discretionary XLY +0.67% and Consumer Staples XLP +0.17% leading all sectors.

Earnings – continue to watch earnings releases this week


Resistance: 1,321, 1,330
Support: 1,311, 1,300, 1,281

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 +2.96 – white candle, new high close
AMZN +2.24 – white candle horizontal breakout
NFLX +4.66 – bullish engulfing bull flag bounce to resistance
QCOM +0.11 – white spinning top
GOOG -1.88 – doji, potential bearish harami
BIDU +3.17 – white candle breakout

NDX 100 stocks stronger than the NDX include CHKP, BIDU, NFLX, SHLD, PCLN and WFMI.

Stocks weaker than the NDX: MICC, SIAL, CTSH, CERN, NVDA, EXPE, EBAY, FSLR, XRAY, AMAT, MRVL and NIHD.

Stocks to Watch on Thursday
Holding Above 30 DMA
SINA, NDAQ, SMH, NVDA, FWLT,CLF, JDSU, CRUS, HOLX, DE, FAS, GLW, JEC, ACN, NYX, ATI, URE, DISH, POT, BA, TSL, DLR, HANS, HUM, LDK, NTES, CAM, SLB, TIE, MA, SPG, STI, CAT, DOW, MOS, NETL, SOHU, SWKS, ATW, SWK, TBT, ICE, JNPR, PCP, AGU, AMD, BAC, CF, DHR, IPI, LXK, PNC, SKX, V, ZION, ARUN, CIEN, CMG, HSY, MCP, DECK, GMCR, TIF, UAL, A, GES, RVBD, HAS, SLW, VECO, HLF, MCD, UNP
Moving Above 30 DMA = 0

Moving Below 30 DMA = 6
CRM, GS, MHS, PCX, SWN, X
Staying Below 30 DMA
AKS, ESI, AIV, LVS, WLT, UCO, UNG, WHR, F, FDX, LCC, SNDK, TLT, CHL, VMW, FCX, CREE, GME, CSTR, FAZ

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

Dave traveled to Orlando on Wednesday and will present with Tom on Thursday on evening.