SPX Breaks Out of Complex Flag, Rises to 1,345 Resistance...

The SPX formed a large white candle and closed +14.10 at 1,345.20 breaking out of the falling resistance line of its complex bull flag of the past four weeks. 

As we stated in Friday’s post, consolidation patterns are generally trend continuation patterns and it is most probable that price will ultimately break out of resistance and continue the prior up trend.  Tuesday did break out of the flag and we would now expect the SPX to move to its recent high of 1,370.  1,346 and 1,360 do represent short term resistance areas where pull backs could occur.

The SPX, INDU, COMPQ, NDX and RUT all broke and closed above their 30 DMA today, which confirms the breadth of today’s price action.  The Euro moved higher overnight as concerns regarding Greek debt subsided.  A stronger Euro has mostly coincided with a higher SPX over the past two year.  The Euro is at a horizontal breakout level.  A successful break out above 1.4423 results in a Chart Signals price target of 1.4880.

A strengthening Euro increases the probability of the SPX rising to 1,370. 

The SPY broke out of its four week complex bull flag and has a new price target of its old high at 137.

(click image to enlarge)

SPX large white candle, close above 30 DMA +1.06%

INDU large white candle, close above 30 DMA +1.03%

COMPQ gap up white candle, close above 30 DMA +1.37%

RUT gap up white candle, close above 30 DMA +1.44%

Breadth strengthened slightly as advancers led decliners 3.13 to 1 on the NYSE and 2.23 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      2,316            1,832

Decliners           738               820

Index              Chg.    Close    Direction    Confirmation

VIX                 -0.53     15.45      Down           Yes – SPX

SOX               +6.51   439.60      Up              Yes – COMPQ

Leading stocks > +2% on Tuesday included LDK, MCP, NETL VECO, TSL, UCO, HLF, ANR, SNDK, URE, FAS, NVDA, UNG, WDC, SINA, F. MHS

Losing stocks < -2.0% included KKD, FAZ, ESI

Positives – SPX, VIX, INDU, RUT, COMPQ, NDX breadth and sectors continued strong, XLF, SOX, AAPL, AMZN, BIDU, GOOG, NFLX, PCLN, QCOM and Euro

Negatives – TNX

Interest rates TNX -0.14 inched lower.  Bond ETF TLT moved up 22 cents.  The Euro moved up 83 pips to 1.4396 at 5 pm on Tuesday.

All nine sectors moved higher on Tuesday.  Technology XLK +1.38% and Healthcare XLV +1.18% were the strongest sectors.

Tuesday Charts of interest...

(click image to enlarge)

SPX

Resistance: 1,344, 1,352, 1,367

Support: 1,330, 1,321, 1,310

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 +10.42 – gap up large white candle, close above 30 DMA

AMZN +2.56 – spinning top, close above 30 DMA

BIDU +1.78 – spinning top, below 30 DMA

GOOG +8.12 – white candle, below 30 DMA

NFLX +6.29 – white candle, above 30 DMA

PCLN +13.75 – large white candle, below 30 DMA

QCOM +1.24 – gap up white candle, above 30 DMA

NDX 100 stocks stronger than the NDX include ATVI, MICC, KLAC, YHOO, SNDK, AAPL, NVDA, PCLN, AMAT, NFLX, FSLR, LRCX, CA, APOL and ALTR.

Stocks weaker than the NDX include RIMM, BRCM, NTAP, VRSN, WCRX, MXIM, VOD, CERN, CEPH, ILMN, GENZ and URBN.

Stocks to Watch on Wednesday

Holding Above 30 DMA

HUM, TPX, HLF, CSTR, ANF, DLR, TIF, COH, TLT, CY, FFIV, UNP, VECO, UAL, GMCR, KKD, RVBD, FAZ, ACN, CMG, SWN, VMW, CF, CREE, INFA, CRM, IAG, ATW, ENTR, NGLS, V, DECK, GES, NVDA, POT, URE, AGU, AKS, ANR, CHL, CRUS, DHR, FCX, STI, UNG

Moving Above 30 DMA = 9

A, CLF, FWLT, ICE, SLB, SMH, SNDK, WTW, ZION

Moving Below 30 DMA = 1

UAL

Staying Below 30 DMA

ESI, MHS, HAS, JDSU, JNPR, SWK, ARUN, GLW, ATI, CIEN,  DOW, F, CAT, IL, NDAQ, SWKS, WDC, MCP, SINA, WLT, FAS, LVS, SOHU, UCO, DE, NETL, PCX, LDK, TSL, NTES, SLW, GS, CDE, TBT, MOS, X, CAM, BAC

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

Futures Point to a Higher Open as Greek Debt Concerns Recede...

BMO – ES +12.00 and NQ +23.75 futures are higher about 20 minutes before the open in pre-market trading and point to a higher open on Tuesday… volume is moderate for pre-market with many more stocks quoting up than down…Financial stocks, XLF is quoting up 16 cents on 12,800 volume in pre-market…

TLT is down 26 cents and the Dollar is lower while the Euro is up 116 pips in premarket trading, following Friday’s 100+ pip rise in pre-market…With a lower dollar look for energy and commodity prices to be higher…

NDX leaders AAPL, AMZN, BIDU, GOOG, NFLX, PCLN and QCOM are quoting higher in pre-market trading…

Dave’s Insight for Tuesday:  The SPX is breaking out in pre-market trading….remember that a gap up will sometimes pull back and test the gap before going higher…Continue to follow your rules…XLF is moving up supporting Tuesday’s early breakout…Watch XLF as a key factor whether the breakout continues…Manage your trades based on the price action you see on the chart you are trading…

SPX

Resistance: 1,344, 1,352, 1,367

Support: 1,330, 1,321, 1,310

Quoting Down – FAZ, URE, TLT

Quoting Up – PCLN, FSLR, AAPL, GOOG, BIDU, NFLX, AMZN, CF, SINA, UCO, WLT, GS, AGU, DECK, FFIV, SOHU, CAT, DE, MOS, MCP, CLF, SLB, POT, WTW, VMW, RVBD, GMCR, UNP, TLS, FCX, FAS, ANR, LVS, CAM, FWLT, PCX, X, SNDK, ICE, TIF, CREE, SLW, DOW, CRM, LDK, NVDA, NETL, CHL, V, SWN, JNPR, ILMN, JOYG, BBY, CTXS, ALXN, WYNN, SRCL, QCOM, NTAP, COST, ISRG, VRTX, EBAY, SBUX, TEVA, BMC, ORCL

Memorial Day, Honor and Respect to All American Soldiers...

Memorial Day is a day to honor all American soldiers who have sacrificed their life in war.  We also say thank you to the families who have suffered pain and anguish because of the personal loss of a family member in war.

Many other indiviudals and families have served America in war and peace for many years without having to make the ultimate sacrifice and we thank you for your service to the same prinicples of freedom and the protection of that freedom that we enjoy in America and that many others throughout the world now enjoy as a result of your service.

SPX Reaches 1,334 Price Target as Expected...Have a Great & Safe Memorial Day Weekend...

The SPX formed a white candle and closed +5.41 at 1,331.10 continuing the support bounce that began on Wednesday.  The SPX continues in a four week consolidation downward sloping price channel and reached its short-term support bounce price target of 1,334 at the channel resistance line, exactly in line with our expectation.  You can view that highlighted expectation in Wednesday’s post.

The SPX is at diagonal resistance.  On Tuesday watch for either a break of the resistance line or the break of the low on Friday, which is 1,325 on the SPX.  Watch for a similar move in the INDU, COMPQ, NDX and RUT. 

Remember consolidation patterns like the last four weeks are generally trend continuation patterns and it is most probable that price will ultimately break out of resistance and continue the prior up trend.  We will watch on Tuesday to see if there is more consolidation or a breakout in the making.

The SPY also reached its price channel resistance target of 133.75, before closing at 133.51.  Watch for a break of resistance or the break of the low of Friday at 132.96.

(click image to enlarge) 

SPX white candle, below 30 DMA +0.41%

INDU spinning top, below 30 DMA +0.31%

COMPQ white candle, below 30 DMA +0.50%

RUT white candle, at 30 DMA +0.65%

Breadth strengthened slightly as advancers led decliners 2.82 to 1 on the NYSE and weakened slightly as advancers led decliners 1.75 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      2,224            1,652

Decliners           786               939

Index              Chg.    Close    Direction    Confirmation

VIX                 -0.11     15.98      Down           Yes – SPX

SOX              +4.85    433.09      Up               Yes – COMPQ

Leading stocks > +2% on Friday included LDK, FFIV, CDE, NDAQ, CY, NVDA, MCP, UNG, CF, INFA, FCX, ZION, AGU, FAS, FWLT, CIEN, GS, BAC

Losing stocks < -2.0% included MHS, WTW, SWKS, FAZ

Positives – SPX, RUT, COMPQ, breadth and sectors continued strong, XLF, AAPL, BIDU, GOOG, NFLX, Euro

Negatives – TNX, TLT, AMZN, PCLN

Interest rates TNX +0.03 inched higher.  Bond ETF TLT moved down 4 cents.  The Euro moved up 169 pips to 1.4313 at 5 pm on Friday.

Eight of nine sectors moved higher on Friday and XLU was unchanged.  Materials XLB +1.08% and Financials XLF +0.71% were the strongest sectors.

Thursday's charts on Friday...

(click image to enlarge)

Charts to watch on Tuesday...

(click image to enlarge)

SPX

Resistance: 1,330, 1,344, 1,352

Support: 1,321, 1,310, 1,300

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 +2.41 – white candle, close above 10 DMA, below 30DMA

AMZN -0.87 – spinning top, close below 30 DMA

BIDU +3.98 – large white candle following hammer, below 30 DMA

GOOG +2.77 – spinning top confirms bullish harami, below 30 DMA

NFLX +0.76 – doji, above 30 DMA

PCLN -3.67 – spinning top, below 30 DMA

QCOM +0.18 – doji, above 30 DMA

NDX 100 stocks stronger than the NDX include MRVL, BRCM, FFIV, MICC, NVDA, BIDU, FSLR, CTRP, LINTA, MU, NWSA, TEVA, MYL, MXIM and NIHD.

Stocks weaker than the NDX include VRSN, ESRX, VRTX, STX, INTC, AMAT, SRCL, PCAR, ILMN, EXPD, PCLN, ADBE, AMGN, BBBY and CTSH.

Stocks to Watch on Tuesday

Holding Above 30 DMA

HUM, TPX, HLF, CSTR, ANF, DLR, TIF, COH, TLT, CY, FFIV, UNP, VECO, UAL, GMCR, KKD, RVBD, FAZ, ACN, CMG, SWN, VMW, CF, CREE, INFA, CRM, IAG, ATW, ENTR, NGLS, V, DECK, GES, NVDA, POT, URE

Moving Above 30 DMA = 9

AGU, AKS, ANR, CHL, CRUS, DHR, FCX, STI, UNG

Moving Below 30 DMA = 4

ESI, ICE, MHS, WTW

Staying Below 30 DMA

HAS, A, JDSU, JNPR, SMH, SWK, ARUN, GLW, SNDK, ATI, CIEN,  DOW, F, FWLT, ZION, CAT, IL, NDAQ, SWKS, WDC, MCP, SINA, WLT, FAS, LVS, SOHU, UCO, DE, NETL, PCX, LDK, SLB, TSL, CLF, NTES, SLW, GS, CDE, TBT, MOS, X, CAM, BAC

Intermediate Term Market Trend: Up

Short Term Market Trend: Up

Deleted – AMD, NYX, JEC, IPI, VLO

Added – CY, COH, ENTR, FFIV, INFA, KKD, TPX, WTW

Futures Point to a Higher Open...

Dave will be in the Weekly Wrap at 4:40 pm EDT...See you there...Have a Great and Safe Memorial Day weekend...


BMO – ES +1.75 and NQ +3.00 futures are higher about 20 minutes before the open in pre-market trading and point to a higher open on Friday… volume is light for pre-market with more stocks quoting down than up…Financial stocks, XLF is quoting up 6 cents on 147,400 volume in pre-market…

MHS -7.31 is Gapping Down this morning…

MRVL +1.47 is Gapping Up this morning following earnings…

TLT is down 44 cents and the Dollar is higher while the Euro is up 106 pips in premarket trading…

NDX leaders AAPL, AMZN, BIDU, GOOG, NFLX and QCOM are quoting higher in pre-market trading…PCLN is flat…

Dave’s Insight for Friday:  The SPX support bounce is continuing in pre-market trading and suggests a support bounce continuation today… …remember the Memorial Day weekend… the market is closed Monday, plan accordingly…Continue to follow your rules…Watch XLF as a key factor whether the support bounce continues…XLF is up in pre-market on moderate plus volume...Manage your trades based on the price action you see on the chart you are trading…

SPX

Resistance: 1,330, 1,344, 1,352

Support: 1,321, 1,310, 1,300

Quoting Down – MHS, NTES, SWK, TLT, FAZ, HAS, CERN, CELG, CHKP, INFY, WYNN, CHRW, SRCL, HSIC, VRTX, XRAY

Quoting Up – CMG, WLT, MCP, FCX, VMW, CLF, HLF, CRUS, SINA, HUM, CAT, ANR, DE, ZAGG, CDE, CRM, UCO, SLW, POT, MOS, PCX, X, CREE, TBT, LDK, MICC, MRVL, ESRX, VMED, FSLR, NFLX, BRCM, GOOG, WFM, COST, AAPL, AMZN, JOYG, CTXS, BIDU, VOD, AKAM

RUT Leads the Way as SPX Bounces...

The SPX formed a white candle and closed +5.22 at 1,325.69 continuing the support bounce that began on Wednesday.  The SPX continues in a three week consolidation downward sloping price channel which indicates a support bounce price target of 1,334 the channel resistance line. 

The SPY price channel support also held as SPY moved above the high of Monday’s entry price above 132.46 closing at 133.00.  The potential price target is133.75.   The VIX closed lower confirming Thursday’s bounce.

(click image to enlarge)

SPX white candle, below 30 DMA +0.40%

INDU spinning top, below 30 DMA +0.07%

COMPQ large white candle confirms piercing line, below 30 DMA +0.78%

RUT large white candle, below 30 DMA +1.22%

Breadth strengthened as advancers led decliners 2.52 to 1 on the NYSE and 2.56 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      2,167            1,848

Decliners           857               720

Index              Chg.    Close    Direction    Confirmation

VIX                 -0.98     16.09      Down           Yes – SPX

SOX              +4.03   428.24      Up              Yes – COMPQ

Leading stocks > +2% on Thursday included GES, TIF, LDK, TSL, NETL, ARUN, WLT, ESI, SWK, URE, MCP, NVDA, LVS, CMG, HUM, AKS, GMCR

Losing stocks < -2.0% included

Positives – RUT, COMPQ, SPX, VIX, breadth and sectors strengthened, AMZN, NFLX, PCLN, TLT, XLF

Negatives – TNX, AAPL

Interest rates TNX -0.68 fell.  Bond ETF TLT moved up 82 cents.  The Euro moved up 60 pips to 1.4144 at 5 pm on Thursday.

Eight of nine sectors moved higher on Thursday.  Consumer Discretionary XLY +0.91% and Technology XLK +0.66% were the strongest sectors.

SPX

Resistance: 1,330, 1,344, 1,352

Support: 1,321, 1,310, 1,300

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 -1.78 – spinning top, below 30DMA

AMZN +2.74 – bullish engulfing, close above 30 DMA

BIDU +0.41 – hammer confirms inverted hammer, below 30 DMA

GOOG -1.54 – bullish harami, below 30 DMA

NFLX +4.28 – white candle, above 30 DMA

PCLN +6.30 – white candle confirms piercing line, below 30 DMA

QCOM +0.18 – spinning top at diagonal resistance, above 30 DMA

(click image to enlarge)

NDX 100 stocks stronger than the NDX include NTAP, CTXS, BRCM, FFIV, NWSA, MRVL, NVDA, CTSH, SYMC, DLTR, CMCSA, MSFT, LINTA, DELL and MU.

Stocks weaker than the NDX include VRTX, FSLR, AMAT, YHOO, SPLS, ESRX, INTC, ERTS, BBBY, MAT, PCAR, AAPL, STX, BIIB and GOOG.

Stocks to Watch on Friday

Holding Above 30 DMA

HUM, HLF, CSTR, ANF, DLR, TIF, TLT, MHS, UNP, VECO, UAL, GMCR, KKD, RVBD, FAZ, ACN, ICE, CMG, SWN, VMW, CF, CREE, CRM, IAG, ATW, NGLS, V

Moving Above 30 DMA = 6

DECK, ESI, GES, NVDA, POT, URE

Moving Below 30 DMA = 2

HAS, UNG

Staying Below 30 DMA

A, DHR, JDSU, JNPR, SMH, SWK, ARUN, STI, AMD, GLW, SNDK, ATI, CIEN, NYX, CHL, DOW, F, FWLT, ZION, CAT, IL, NDAQ, SWKS, VLO, WDC, MCP, SINA, WLT, FAS, LVS, SOHU, UCO, ANR, DE, NETL, PCX, AGU, AKS, FCX, IPI, LDK, SLB, TSL, CLF, NTES, JEC, SLW, GS, CDE, TBT, MOS, X, CAM, BAC, CRUS

Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral

Futures Point to a Higher Open...

BMO – ES +4.00 and NQ +3.75 futures are higher about 60 minutes before the open in pre-market trading and point to a higher open on Thursday… volume is light for pre-market with more stocks quoting down than up…Financial stocks, XLF is quoting flat on 92,900 volume in pre-market…

GES +5.00 and TIF +2.19 are Gapping Up this morning following earnings…

TLT is down 52 cents and the Dollar is higher while the Euro is up 85 pips in premarket trading…

NDX leaders AAPL, BIDU, NFLX, PCLN and QCOM are slightly higher in pre-market trading…GOOG is slightly lower…

Dave’s Insight for Thursday:  The SPX bounced off support and formed a small bullish candle…pre-market trading is up and suggests a support bounce continuation… Continue to follow your rules…Watch XLF as a key factor whether support continues…Manage your trades based on the price action you see on the chart you are trading…A break above the high of Monday on the SPY is 132.46 and it is trading above that level at this moment…Wednesday is a new low day by 21 cents but gives a higher entry, not lower…

SPX

Resistance: 1,321, 1,330, 1,344

Support: 1,310, 1,300, 1,288

Quoting Down – ICE, GMCR, TLT, SLW, ANF, ALTR, FSLR, BRCM, INTU, TEVA, ROST, CHKP

Quoting Up – GES, TIF, PCLN, NTAP, WFM, NFLX, SINA, SMH, HLF, CAT, ESI, WLT, ANR, LVS, MOS, POT, AGU, DE, CLF, MCP, BIDU, MICC, WYNN, AAPL, CTSH, QCOM, ILMN, AKAM, AMZN, CELG, CTXS, ORCL

SPX Bounces at Support...Forms Bullish Engulfing...

The SPX formed a small bullish engulfing outside day and closed +4.19 at 1,320.47, with price reaching an intraday low at 1,311 near its price channel support and one point below Monday’s low.  The SPX continues in a three week consolidation downward sloping price channel or complex flag and did reach the area of its potential price target around 1,310.  If Tuesday’s slowing momentum and Wednesday upward momentum holds, the price channel indicates a support bounce price target of 1,334 the channel resistance line.

The SPY price channel support also held.  Potential support bounce entry would be above 132.46 with a potential price target of 133.75.   The VIX closed lower confirming Wednesday’s bounce.

(click image to enlarge)

SPX small bullish engulfing, close below 30 DMA +0.32%

INDU small bullish engulfing, close below 30 DMA +0.31%

COMPQ piercing line, close below 30 DMA +0.55%

RUT bullish engulfing, below 30 DMA +1.30%

Breadth strengthened as advancers led decliners 1.90 to 1 on the NYSE and 1.96 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      1,979            1,728

Decliners        1,037               881

Index              Chg.    Close    Direction    Confirmation

VIX                 -0.75     17.07      Down           Yes – SPX

SOX              +4.00   424.21      Up              Yes – COMPQ

Leading stocks > +2% on Wednesday included FWLT, ARUN, ANR, PCX, UCO, CIEN, AGU, CF, SLW, POT, SOHU, RVBD, GES, VMW, IPI, FCX, VECO, IL, LVS, SINA, ATW, CRUS, DOW

Losing stocks < -2.0% included LDK, MCP, UAL

Positives – RUT, SPX, VIX, INDU, COMPQ, breadth and sectors strengthened, AAPL, NFLX, PCLN, QCOM

Negatives – TLT, AMZN

Interest rates TNX +0.06 rose slightly.  Bond ETF TLT moved down 45 cents.  The Euro moved down 14 pips to 1.4084 at 5 pm on Wednesday.

Seven of nine sectors moved higher on Wednesday.  Energy XLE +1.69% and Materials XLB +1.41% were the strongest sectors.

SPX

Resistance: 1,321, 1,330, 1,344

Support: 1,310, 1,300, 1,288

The short term 3 day trend is neutral.

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 +4.59 – large white, below 30DMA

AMZN -1.01 – spinning top, close below 30 DMA

BIDU +0.28 – inverted hammer, below 30 DMA

GOOG +1.41 – inverted hammer, below 30 DMA

NFLX +11.87 – large white candle breakout, close above 30 DMA

PCLN +7.89 – piercing line, bullish MACD divergence, below 30 DMA

QCOM +0.89 – white candle confirm hammer, above 30 DMA

(click image to enlarge)

NDX 100 stocks stronger than the NDX include NFLX, FLEX, ERTS, ROST, FAST, FFIV, LLTC, PCLN, QCOM, JOYG, CTSH, ALTR, ILMN,EXPD and AAPL.

Stocks weaker than the NDX include FSLR, APOL, URBN, SPLS, WCRX, MYL, COST, BIIB, VRTX, CELG, STX, INFY, CTRP, GRMN and AMZN.

Stocks to Watch on Thursday

Holding Above 30 DMA

HUM, HLF, CSTR, ANF, DLR, TIF, TLT, MHS, UNP, VECO, HAS, UAL, GMCR, KKD, RVBD, FAZ, ACN, ICE, CMG, SWN, VMW, CF, CREE, CRM, IAG

Moving Above 30 DMA = 4

ATW, NGLS, UNG, V

Moving Below 30 DMA = 0

Staying Below 30 DMA

A, DHR, GES, JDSU, JNPR, SMH, SWK, URE, ARUN, STI, AMD, ESI, GLW, SNDK, ATI, CIEN, NYX, CHL, DOW, F, NVDA, FWLT, ZION, CAT, IL, NDAQ, SWKS, VLO, WDC, MCP, SINA, WLT, FAS, LVS, SOHU, UCO, ANR, DE, NETL, PCX, AGU, AKS, FCX, IPI, LDK, SLB, TSL, CLF, DECK, NTES, POT, JEC, SLW, GS, CDE, TBT, MOS, X, CAM, BAC, CRUS

Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral

Futures Point to a Lower Open...

BMO – ES -4.00 and NQ -4.75 futures are lower about 30 minutes before the open in pre-market trading and point to a lower open on Wednesday… volume is light for pre-market with more stocks quoting down than up…Financial stocks, XLF is quoting down 2 cents on 192,100 volume in pre-market…

TLT is down 37 cents and the Dollar is higher while the Euro is down 41 pips in premarket trading…

NDX leaders AAPL, BIDU GOOG and NFLX are slightly higher in pre-market trading…AMZN, PCLN and QCOM are slightly lower…

Dave’s Insight for Wednesday:  The SPX is near Monday’s low 1,312…If support breaks, look for a move to the next support level 1,300… Continue to follow your rules…Watch XLF as a key factor whether support holds or breaks…Manage your trades based on the price action you see on the chart you are trading…A break above the high of the low day on the SPY is 132.46 as of Monday but today may become a new low day…

SPX

Resistance: 1,321, 1,330, 1,344

Support: 1,310, 1,300, 1,288

Quoting Down – MCP, ICE, CRM, ANF, NETL, JNPR, TLT, SNDK, GS, UCO, URE, CAN, TIF, CAT, AGU, CF, ISRG, COST, CERN, ILMN, VRTX, PCLN, FSLR, TEVA, NFLX, BBBY, AMZN, AMAT

Quoting Up – ANR, SOHU, SINA, CREE, SLW, ESI, FAZ, MHS, CLF, AAPL, WYNN, SHLD, ORLY, MICC, ADSK

SPX 1,310 Support Holds as Bonds Rise...

The SPX formed a spinning top inside day and closed -1.09 at 1,316.27, with price reaching an intraday low at 1,313 near its price channel support and just above Monday’s low.  The SPX continues in a three week consolidation downward sloping price channel or complex flag which indicates a potential price target around 1,310. 

A smaller range neutral candle did appear on Tuesday as is typical before a bounce begins.  Look for a support bounce and stay alert for the lower probability of a break of support. 

The SPY price channel support also held on Tuesday forming a spinning top inside day also.  Potential support bounce entry would be above 132.46.   The VIX closed lower than its open forming a hammer.

KKD +3.73% rose another +30 cents.

SPX spinning top inside day, close below 30 DMA -0.08%

INDU inverted hammer inside day, close below 30 DMA -0.20%

COMPQ large black candle, close below 30 DMA -0.46%

RUT large black candle, below 30 DMA -0.46%

Breadth strengthened as decliners led advancers 1.17 to 1 on the NYSE and 1.52 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      1,386            1,031

Decliners        1,623            1,570

Index              Chg.    Close    Direction    Confirmation

VIX                 -0.45     17.82      Down           No – SPX

SOX               -3.13   420.21      Down           Yes – COMPQ

Leading stocks > +2% on Tuesday included MCP, CDE, ESI, UCO, CRM, SLW, FCX, IPI, AKS, GMCR

Losing stocks < -2.0% included RVBD, ARUN, JNPR, GES, IL, SWK, UAL, CIEN

Positives – VIX, TLT, NFLX

Negatives –COMPQ, RUT, TNX, breadth and sectors remained negative, AAPL, AMZN, BIDU, PCLN

Interest rates TNX -0.11 moved lower.  Bond ETF TLT moved up 36 cents.  The Euro moved up 42 pips to 1.4098 at 5 pm on Tuesday.

Seven of nine sectors moved lower on Tuesday.  Energy XLE +1.42% and Materials XLB +0.50% were the strongest sectors.

SPX

Resistance: 1,321, 1,330, 1,344

Support: 1,310, 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 -2.21 – black candle, below 30DMA

AMZN -2.95 – black candle not confirm hammer, at 30 DMA

BIDU -0.21 – black candle, below 30 DMA

GOOG -0.13 – inverted hammer, below 30 DMA

NFLX -0.23 – spinning top at resistance, close above 30 DMA

PCLN -10.74 –large black candle bear flag reaches target 1, below 30 DMA

QCOM -0.07 – spinning top not confirm hammer, above 30 DMA

NDX 100 stocks stronger than the NDX include APOL, NIHD, SPLS, WCRX, STX, VRTX, CTSH, CTRP, YHOO, TEVA, NVDA and MYL.

Stocks weaker than the NDX include ALXN, CHKP, NTAP, EBAY, SHLD, FFIV, GRMN, PCLN, DTV, FLIR, ATVI, CERN, JOYG, LINTA and LRCX.

Stocks to Watch on Wednesday

Holding Above 30 DMA

HUM, HLF, CSTR, ANF, DLR, TIF, TLT, MHS, UNP, VECO, HAS, UAL, GMCR, KKD, RVBD, FAZ, ACN, ICE, CMG, SWN, VMW, CF, CREE, CRM, IAG

Moving Above 30 DMA = 0

Moving Below 30 DMA = 0

Staying Below 30 DMA

A, ATW, DHR, GES, JDSU, JNPR, SMH, SWK, URE, ARUN, STI, V, AMD, ESI, GLW, SNDK, ATI, CIEN, NYX, CHL, DOW, F, NVDA, FWLT, ZION, CAT, IL, NDAQ, SWKS, VLO, WDC, MCP, SINA, WLT, UNG, FAS, LVS, SOHU, UCO, ANR, DE, NETL, NGLS, PCX, AGU, AKS, FCX, IPI, LDK, SLB, TSL, CLF, DECK, NTES, POT, JEC, SLW, GS, CDE, TBT, MOS, X, CAM, BAC, CRUS

Intermediate Term Market Trend: Up

Short Term Market Trend: Down