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
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
Short Term Market Trend: Up
1 comment:
Dave,
Thank you. :)
Kathy :)
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