SPX Moves Lower and Forms Hammer...Closes Just Above 1,294 Support...

The SPX formed a hammer/bullish harami closing down -7.89 at 1,296.39.  The SPX fell to its horizontal support of Feb 24 and then bounced up to form today’s hammer.   Monday is the sixteenth day since the SPX peak on Feb 18.  A MACD bullish divergence is still present on the SPX, INDU, COMPQ and NDX. The MACD has formed an equal low on the RUT.

SPX hammer/bullish harami, bounce at support, -0.58%

INDU hammer/bullish harami, bounce at support, -0.43%

COMPQ bullish harami, bounce at support, -0.54%

RUT hammer/bullish harami, bounce at support, -0.58%

Breadth weakened on Monday as decliners led advancers 2.14 to 1 on the NYSE and 2.32 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers         953                796

Decliners        2,041             1,847

Index              Chg.    Close    Direction      Confirmation

VIX                +1.05       21.13     Up                 Yes – SPX

SOX               -0.74     427.17     Down            Yes – COMPQ

SOX semiconductor stocks WFR, STM, MU, BRCM, NSM, TER and TXN rose on Monday.  Other semis fell but only AMD -2.54% was down more than -2%.

Leading stocks > +2% on Monday included LDK, TSL, NYX, SWN, CRUS, VLO, FAZ, CAT 

Losing stocks < -2.0% included TIF, LVS, VMW, NDAQ, UAL, NTES, RVBD, AMD, MCP, CRM, FAS, MHS

Positives – Euro, AAPL

Negatives – SPX, VIX, TNX, breadth and sector weakness, GOOG, NFLX

Interest rates moved lower on Monday and bond ETF TLT was down 4 cents.  The Euro rose 92 pips to 1.3991 at 5 pm ET bouncing above its Feb 1 resistance, now new support.

Only one sector rose on Monday with Energy XLE +0.55% and Materials XLB -0.37% leading all sectors.

Movers and Setups

Bull Flag Price Pattern – NYX, ARUN, ESI, HLF, HUM IL, RVBD, SLW, URE, VLO, HAS, ICE, SWK, UCO, WDC, PCLN, ADBE, BIIB, WYNN, CERN, CTXS, ROST, ADP, VRTX, DTV, GILD, ALTR, XRAY, SBUX, GRMN, PAYX, EBAY, VOD, QGEN

SPX

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

Support: 1,281, 1,271, 1,256

The short term 3 day trend is down.
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 +1.57 – spinning top closes above 30 DMA

AMZN -1.43 – spinning top/bullish harami at support, -14.3% correction from Feb 14

NFLX -3.34 – spinning top, -23.6% correction from Feb 14

QCOM -0.13 – spinning top at gap support, -11.8% correction from Mar 1

GOOG -6.72 –spinning top, 10.0% correction from Feb 18

BIDU -0.90 – doji

NDX 100 stocks stronger than the NDX include FSLR, CELG, SRCL, MU, DLTR, BRCM, NVDA, ISRG, ADSK, CTRP, FLIR, AAPL, INFY, ERTS and CERN.

Stocks weaker than the NDX include STX, WCRX, NTAP, SBUX, VRTX, DELL, LINTA, CMCSA, FFIV, ROST, QGEN, EXPD, CEPH, NFLX and RIMM.

Stocks to Watch on Tuesday

Holding Above 30 DMA
HUM, NTES, SWK, IL, DHR, ARUN, GMCR, RVBD, SLW, ESI, HLF, UCO, CMG, HAS, A, WDC, SINA, TLT, FAZ, CAM, JNPR, SOHU, VLO

Moving Above 30 DMA = 3

CAT, NYX, SWN

Moving Below 30 DMA = 6

ATW, BAC, DLR, ICE, TIF, URE

Staying Below 30 DMA

MCP, AMD, CHL, DECK, DOW, NDAQ, UNP, V, VECO, CLF, FAS, GLW, JDSU, NETL, PCX, TBT, ACN, AGU, CRUS, CSTR, SWKS, WLT, CIEN, DE, GES, IPI, MHS, MOS, POT, SLB, SMH, ATI, CF, AKS, CRM, LDK, SNDK, STI, TSL, FWLT, GS, JEC, LVS, NVDA, UAL, X, ZION, VMW, UNG, F, FCX

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