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