SPX Forms Hanging Man...SOHU, MCP, SINA Rise, NFLX Down After-Hours...

At 8:01:57 MDT I entered a real time virtual trade on a MCP bull flag pattern buying 50 Apr5 11 (weekly) at 1.35. I closed the position at 1:22:45 MDT on a pre-entered limit order selling at 2.70. Invested $6750, sold for a gain of +100% or +$6,750 in a one day trade. MCP formed a bullish engulfing pattern.

The SPX formed a hanging man and closed -2.13 at 1,335.25.

SPX hanging man, at horizontal resistance -0.16%
INDU hanging man, just above horizontal resistance, -0.21%
COMPQ white spinning top, at horizontal resistance, +0.20%
RUT hanging man, -0.17%

Breadth weakened on Monday as decliners led advancers 1.18 to 1 on the NYSE and 1.17 to 1 on the NASDAQ …

Exchange     NYSE     NASDAQ
Advancers    1,390        1,199
Decliners      1,649        1,404

Index    Chg.     Close    Direction   Confirmation
VIX      +1.08       15.77       Up              Yes – SPX
SOX    +0.21     443.41       Up              Yes – COMPQ

Leading stocks > +2% on Monday included SOHU, MCP, UAL, ARUN, SINA, HAS, STI

Losing stocks < -2.0% included CDE, SLW, NTES, IL, A

Positives – TNX, AAPL, BIDU

Negatives –TLT, breadth and sectors weakened

nterest rates TNX -0.37 moved down and bond ETF TLT moved up 35 cents. Financial stocks XLF moved down 2 cents. The Euro moved up 13 pips to 1.4577 at 5 pm on Monday.

Six of nine sectors moved lower on Monday. Utilities XLU +0.12% and Healthcare XLV +0.12% were the strongest sectors.

Key Earnings this week:

Monday – after hours ESRX -6.36%, NFLX -5.27%, VECO +4.75%


Tuesday – AKS, AMZN, BRCM, ILMN, X, F
Wednesday – CTXS, AKAM, EBAY, SBUX, FISV, QGEN, ORLY, BA
Thursday – POT, CSTR, CERN, EXPE, FSLR, KLAC, MSFT, NIHD, VRSN, CROX

Look for selectivity and rotation to occur with positive earnings attracting big money buying and negative earnings attracting big money selling.

SPX
Resistance: 1,344, 1,352, 1,367
Support: 1,330, 1,321, 1,311

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 +2.31 – white candle bounce
AMZN -0.47 – doji
BIDU +3.31 – white candle support bounce
GOOG -0.05 – doji
NFLX -0.55 – hanging man, earnings after the close
PCLN +0.36 – doji, new high close
QCOM -0.12 – white spinning top

NDX 100 stocks stronger than the NDX include EBAY, EXPE, INTC, BIDU, CTXS, AMGN, NTAP, AKAM, SNDK, NVDA, TEVA, YHOO, ADSK, MXIM and MYL.

Stocks weaker than the NDX include VRTX, CTRP, WCRX, FSLR, MU, ISRG, ESRX, SPLS, PCAR, BBBY, FFIV, JOYG, CERN, ADBE and WFMI.

Stocks to Watch on Tuesday
Holding Above 30 DMA
HUM, GMCR, HLF, SINA, UCO, CSTR, WDC, DHR, NTES, MCP, A, WLT, ACN, SOHU, CMG, ANF, DECK, DLR, CRM, LVS, TIF, V, NDAQ, NYX, SNDK, CIEN, IL, VMW, FAZ, SWK, URE, ATI, TLT, CF, AGU, AKS, ARUN, CHL, CLF, DOW, MHS, POT, UNG, ZION, AMD, CAT, DE, F, FCX, GES, IPI, JEC, NETL, NVDA, SMH, ESI, FWLT, JDSU, PCX, VLO
Moving Above 30 DMA = 1
UNP
Moving Below 30 DMA = 3
JNPR, SLB, VECO
Staying Below 30 DMA
SWN, SLW, TSL, IAG, GS, CDE, FAS, STI, TBT, HAS, ATW, MOS, X, ICE, CAM, RVBD, BAC, GLW, CRUS, SWKS, LDK, UAL

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