Bull Flags Bounce as SPX, JPM Open Higher and Close Below Open...

The SPX formed a spinning top on Wednesday closing up +0.25 at 1,314.41. The SPX held just above its 30 DMA for the second straight day.

SPX spinning top, above 30 DMA +0.02%
INDU spinning top, above 30 DMA, +0.06%
COMPQ spinning top, above 30 DMA, +0.61%
RUT bullish harami, close at 30 DMA, +0.20%

Breadth strengthened as advancers led decliners 1.10 to 1 on the NYSE and 1.06 to 1 on the NASDAQ …

Exchange      NYSE      NASDAQ
Advancers     1,564         1,333
Decliners       1,413         1,255

Index     Chg.     Close     Direction     Confirmation
VIX         -0.17     16.92       Down           Yes – SPX
SOX      +1.11   427.89       Up                Yes – COMPQ

Leading stocks > +2% on Wednesday included RVBD, ARUN, SINA, DECK, CIEN, TSL, A, LDK, SOHU, VLO, VMW, CMG, LVS, NVDA, UCO, CLF

Losing stocks < -2.0% included ESI, FCX, CDE, STI

Positives – AAPL, AMZN, BIDU, GOOG, NFLX, PCLN, QCOM, VIX, breadth and sectors strengthened, TLT

Negatives – TNX, TBT

Interest rates TNX -0.34 moved down and bond ETF TLT moved up 57 cents. Financial stocks XLF was down -12 cents. The Euro moved down -27 pips to 1.4442 at 5 pm on Wednesday.

Five of nine sectors moved higher on Wednesday. Technology XLK +0.62% and Energy XLE +0.41% were the strongest sectors.

The SPX and many stocks opened higher and closed below their open. XLF opened higher and closed lower as interest rates fell again and led by the same pattern in JPM that beat EPS and revenues before open.

GOOG reports after the close on Thursday. Look for selectivity and rotation to occur with positive earnings attracting big money buying and negative earnings attracting big money selling.

Most of Tuesday’s support bounces continued higher on Wednesday: HUM, CMG, GMCR, UAL, VMW, DLR, UNP, ATI, MON, WHR, NFLX, AAPL, STX, SBUX, VRSN, NTAP


Wednesday support bounces included: SINA, DHR, NTES, SOHU, DECK, LVS, TIF, NYX, SNDK, SWK, VLO, ARUN, AAPL, BIDU, NFLX

Bull Flag Setups – CDE, HAS, UCO, CAT, SLW, IAG, FCX, TIE, WLT, CLF, PCX, NETL, F, DOW, JEC, FWLT, CF, ESI, ZION, NDAQ, GS, SWN, AGU, POT, SLB, URE, ATW

SPX
Resistance: 1,321, 1,330, 1,344
Support: 1,311, 1,300, 1,288

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 +3.73 – white hammer, inside day
AMZN +1.81 – bullish harami, bull flag
BIDU +4.98 – spinning top bounce, bull flag
GOOG +5.67 – white hammer at support
NFLX +4.83 – white hammer, bounce in bull flag
QCOM +0.43 – black hammer

NDX 100 stocks stronger than the NDX include DELL, WYNN, BIDU, BIIB, FFIV, WFMI, ALTR, ALXN, CERN, NVDA, HSIC, RIMM, NFLX, STX and MICC.

Stocks weaker than the NDX include APOL, LRCX, MRVL, SHLD, ORLY, VRTX, CSCO, ISRG, AMAT, EXPE, ESRX and CEPH.

Stocks to Watch on Thursday
Holding Above 30 DMA
HUM, GMCR, HLF, SINA, UCO, CAT, CSTR, WDC, DHR, NTES, MCP, A, DE, WLT, ACN, F, SOHU, TSL, CMG, ANF, DECK, DLR, CF, CRM, LVS, TIF, V, NDAQ, NYX, ZION, SNDK, CIEN, GS, IL, VMW, UNP
Moving Above 30 DMA = 4
CHL, CLF, FAZ, TLT
Moving Below 30 DMA = 6
CDE, FAS, FCX, IAG, STI, TBT
Staying Below 30 DMA
DOW, ESI, FWLT, HAS, JEC, NETL, PCX, SLW, SMH, AGU, AKS, POT, SLB, SWN, VECO, ATI, SWK, URE, VLO, ATW, MOS, ARUN, IPI, UNG, X, AMD, ICE, CAM, RVBD, JNPR, BAC, GLW, JDSU, CRUS, SWKS, GES, MHS, LDK, NVDA, UAL

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