SPX Large White Candle, Rallies for Third Straight Day...

The SPX opened above Friday’s high of 1,288 and traded between 1,291 and 1,300 all day closing up +19.18 at 1,298.38.  The SPX, INDU and COMPQ are still below their 30 DMA.  The RUT gained +18.36 closing at 813.02 leading all the broad indexes.  A leading RUT is generally bullish.

SPX large white candle, +1.50%

INDU large white candle, +1.50%

COMPQ white candle, +1.83%

RUT large white candle, +2.31%

Breadth strengthened on Monday as advancers led decliners 4.44 to 1 on the NYSE and 3.54 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      2,473             2,065

Decliners           556               582

Index               Chg.    Close    Direction      Confirmation

VIX                  -3.83      20.61     Down            Yes – SPX

SOX               +7.59    426.79     Up                 Yes – COMPQ

Leading stocks > +2% on Monday included LVS, VECO, SINA, FWLT, SLW, TIF, HLF, ATI, CRUS, ARUN, SLB, CLF, SWKS, CIEN, CRM, VLO, TSL, ATW, NTES, RVBD, DOW, CAM, DECK, IL, UAL, SOHU, POT, FAS, CAT, JDSU, A, NETL, NDAQ, ESI, MOS, URE. VMW, IPI

Losing stocks < -2.0% included FAZ

Positives – SPX, VIX, INDU, COMPQ, NDX, RUT, TNX, AAPL, AMZN, BIDU, GOOG, NFLX, PCLN, QCOM, breadth and sectors strengthened, Euro

Negatives – TLT closed near mid-range

Interest rates TNX rose on Monday and bond ETF TLT fell 55 cents.  The Euro rose 43 pips to 1.4222 at 5 pm.

All nine sectors moved higher on Monday with Energy XLE +3.04% and Industrials XLI +2.20% the strongest sectors.

The SPX closed above its late February and early March support which is positive.  The SPX, INDU and COMPQ are still below their respective 30 DMA which negative.  The last time the VIX rose above 25 in May 2010 it stayed above 25 for six weeks before closing below 25 for just two days.  Last week the VIX closed just two days above 25 and has fallen 10 points from its high last Wednesday, which is positive.

Ten stocks in our watchlist rose and closed above their 30 DMA while 15 stocks in the NDX closed rose and closed above their 30 DMA. 

While the potential for a bear flag pattern still exists until the indexes and individual stocks make a high higher than their recent highs, Monday’s positive technical action certainly created more bullish setups and signals.

Follow your rules and take signals in the direction of the current short term trend while remaining prepared for any bear flags signals that many occur.

Movers and Setups

Bull Flag Signals – SINA, SLW, SWK, HLF, ARUN, NTES, CAM, UAL

Breakout Resistance Signals – CAT, VECO,

Bull Flag Setup – FSLR, NFLX, CMG, IL

Breakout Resistance Setup – UNP, DE, FCX, FWLT, HLF, SLB, CLF, ATW, URE

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 +8.63 – white candle, -9.8% correction from Mar 7

AMZN +2.71 – spinning top confirm bullish harami, -16.1% correction from Feb 14

NFLX +3.44 – bullish harami bull flag, -23.6% correction from Feb 14

QCOM +1.92 – white spinning top, -16.2% correction from Mar 1

GOOG +15.44 – large white candle, -12.6% correction from Feb 18

BIDU +3.50 – white candle at top of trading range

NDX 100 stocks stronger than the NDX include WYNN, PCAR, ADSK, VOD, QCOM, NWSA, FLIR, JOYG, ALTR, BIDU, MU, CERN, MXIM, GOOG and KLAC.

Stocks weaker than the NDX include SHLD, ROST, FFIV, DLTR, MRVL, NTAP, DTV, ESRX, FLEX, GRMN, TEVA and WCRX.

Stocks to Watch on Tuesday

Holding Above 30 DMA
HUM, ARUN, GMCR, HLF, HAS, SINA, TLT, FAZ, SWN, UCO, CAM, CAT, CSTR, UNG, WDC, PCX, SLW, SWK, UNP

Moving Above 30 DMA = 10

A, ATW, DE, DHR, FCX, IL, NTES, URE, VECO, VLO

Moving Below 30 DMA = 0

Staying Below 30 DMA

TSL, CMG, DLR, NYX, RVBD, ESI, JNPR, SOHU, BAC, ICE, TIF, MCP, 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

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