Bear Flag, Bearish Harami, Dark Cloud Cover...What's in a Name?

The SPX paused on Tuesday forming a potential bearish harami making Monday a potential lower high closing down -4.61 at 1,293.77.  The RUT closed back below its 30 DMA.  As of today all four broad indexes including SPX, INDU, COMPQ and RUT are below their 30 DMA.

SPX potential bearish harami in bear flag pattern, -0.36%

INDU potential bearish harami in bear flag pattern, -0.15%

COMPQ potential bearish harami in bear flag pattern, -0.31%

RUT dark cloud cover in bear flag pattern, close below 30 DMA, -0.54%

Breadth weakened on Tuesday as decliners led advancers 1.36 to 1 on the NYSE and 1.46 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      1,264             1,062

Decliners        1,724             1,552

Index               Chg.    Close    Direction      Confirmation

VIX                  -0.40      20.21     Down            No – SPX

SOX                -3.88    422.91     Down            Yes – COMPQ

Leading stocks > +2% on Tuesday included MCP, UCO, UNG

Losing stocks < -2.0% included CIEN, RVBD, CF, JNPR, JDSU, VECO, CRUS, JEC, TSL, CRM, SWKS, AMD, UAL, IPI, UNP

Positives – VIX, TNX, BIDU, NFLX

Negatives – breadth and sectors weakened, XLU, XLV and XLP leading sectors, QCOM, T LT, Euro

Interest rates TNX closed slightly higher on Tuesday and bond ETF TLT rose 31cents.  The Euro fell 29 pips to 1.4192 at 5 pm.

Eight of nine sectors moved lower on Tuesday with Energy XLU +0.14% and Healthcare XLV -0.05% the strongest sectors.

The SPX closed at its late February and early March support which is neutral.  The SPX, INDU, COMPQ and RUT are below their respective 30 DMA which negative.  The VIX moved lower which is positive.  The SPX, INDU, COMPQ and RUT are in bear flag patterns and each formed a bearish candle pattern on Tuesday. 

More stocks in our watchlist and the NDX fell and closed below their 30 DMA on Tuesday. 

Follow your rules.  Be prepared on Wednesday for potential bear flag signals that may occur.  The indexes and many individual stocks are in bear flag patterns at this time.

Bear Flag, Bearish Harami, Dark Cloud Cover…What’s in a Name?  Downside potential!

Movers and Setups

Bear Flag Signals – QCOM, JEC, AMD, DE, URE, VMED, JOYG, INTU

Breakout Support Signals – RVBD, URBN

Bear Flag Setup – XLNX, LLTC, TXN, ALTR, MXIM, KLAC, SMH, IBM, HPQ, TXN, POT, FCX, FWLT, SLB, CLF, ATW, WYNN, SNDK, AAPL, GOOG, ADSK, ICE, VMW, MICC, GS, TBT

Breakout Support Setup – CF, CTXS, SOHU

SPX

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

Support: 1,288, 1,281, 1,271

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 +1.90 – black spinning top, -9.8% correction from Mar 7

AMZN -1.92 – black spinning top, -16.1% correction from Feb 14

NFLX +8.55 – gap up spinning top, -23.6% correction from Feb 14

QCOM -1.14 – bearish engulfing, -16.2% correction from Mar 1

GOOG +0.82 – doji inside day, -12.6% correction from Feb 18

BIDU +3.09 – large white candle breakout of trading range

NDX 100 stocks stronger than the NDX include NFLX, APOL, BIDU, VRTX, CERN, ADBE, NIHD, ESRX, FLIR, ADSK, MYL, DTV, MRVL, COST and MICC.

Stocks weaker than the NDX include URBN, FFIV, CHRW, WYNN, PCAR, EXPD, VMED, CTXS, QCOM, SHLD, LRCX, JOYG, NVDA, SNDK and INTU.

Stocks to Watch on Wednesday

Holding Above 30 DMA
HUM, ARUN, GMCR, HLF, HAS, SINA, TLT, FAZ, SWN, UCO, CAM, CAT, CSTR, UNG, WDC, SLW, SWK, ATW, DHR, FCX, IL, NTES, VECO, VLO

Moving Above 30 DMA = 1

MCP

Moving Below 30 DMA = 5

A, DE, PCX, UNP, URE

Staying Below 30 DMA

TSL, CMG, DLR, NYX, RVBD, ESI, JNPR, SOHU, BAC, ICE, TIF, AMD, CHL, DECK, DOW, NDAQ, V, CLF, FAS, GLW, JDSU, NETL, TBT, ACN, AGU, CRUS, SWKS, WLT, CIEN, GES, IPI, MHS, MOS, POT, SLB, SMH, ATI, CF, AKS, CRM, LDK, SNDK, STI, FWLT, GS, JEC, LVS, NVDA, UAL, X, ZION, VMW, F

Eight Week Term Market Trend: Neutral
Short Term Market Trend: Neutral