SPX Day Two Bull Flag Bounce as VIX Falls...

Dave will be at the Las Vegas Money Show at Caesar's Palace with Tom on Tuesday evening at 7 pm PDT.  See you there...

The SPX formed a white candle that confirmed the bullish harami and closed +6.09 at 1,346.29.  PCLN which closed down -$14.94 on Friday, today rose +$10.17 while forming a bullish harami.  The SPX, COMPQ and RUT today had larger percentage gains than on Friday.

SPX white candle +0.45%

INDU white spinning top confirms inverted hammer +0.36%

COMPQ white spinning top inside day +0.55%

RUT large white candle confirms inverted hammer +1.14%

Breadth strengthened on Monday as advancers led decliners 2.28 to 1 on the NYSE and 1.91 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      2,108            1,720

Decliners           921               899

Index              Chg.    Close    Direction     Confirmation

VIX                 -1.24      17.16     Down           Yes – SPX

SOX               -1.30    442.36     Down           No – COMPQ

Leading stocks > +2% on Monday included UCO, PCX, MCP, CF, CLF, FCX, VLO, CAM, NDAQ, SLW, ATW, FWLT, WLT, GLW, NVDA, X, IL, POT

Losing stocks < -2.0% included CDE, UNG

Our bull flag entry for SPY was filled on Friday.

Positives – SPX, VIX, INDU, COMPQ, RUT, breadth strengthened, AMZN, BIDU, GOOG, PCLN, sectors remained strong, Euro

Negatives – XLF, TNX

Interest rates TNX -0.15 moved down and bond ETF TLT moved down 10 cents.  Financial stocks XLF fell 4 cents. The Euro rose 54 pips to 1.4362 at 5 pm on Monday.

Eight of nine sectors moved higher on Monday.  Energy XLE +1.75% and Materials XLB +1.45% were the strongest sectors.

Friday End of Day Bull Flag Entry Signals
On Monday
Continued to Rise – CROX (Wed.), HUM, NVDA, CTRP, XRAY, EXPE, ILMN, MICC, CHKP, TUP
Pulled Back – SINA, VECO

Bull Flag Entry on Monday – ACN, ARUN, CY, GLW, GMCR, MCP, NYX, V, VMW, ISRG, BIDU, EXPD, FFIV, ILMN, AMZN, ESRX

Bull Flag Setups – A, AMD, ATI, CAT, CIEN, CSTR, DHR, DLR, DOW, F, GES, SMH, SNDK, SWKS, SWN, TIF, UNG, UNP, URE, WDC, WYNN, CTXS, ALTR, BBBY, LLTC, QCOM, PCLN, DTV, CELG


SPX

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

Support: 1,330, 1321

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 +0.94 – spinning top

AMZN +3.20 – white candle

BIDU +1.36 – hammer

GOOG +2.38 – hammer

NFLX +6.94 – white candle

PCLN +10.17 – bullish harami in bull flag

QCOM +0.09 – hammer

NDX 100 stocks stronger than the NDX include VRTX, NFLX, ILMN, JOYG, MICC, WCRX, FFIV, VOD, NVDA, ISRG, BIIB, PCLN, ESRX, EXPD and ADBE.

Stocks weaker than the NDX include MU, SPLS, RIMM, INTC, MCHP, SHLD, FLEX, AMA, VMED, BRCM and SBUX.

Stocks to Watch on Tuesday

Holding Above 30 DMA

HUM, HLF, CSTR, DHR, MCP, A, ANF, DLR, TIF, V, NYX, CIEN, VMW, URE, ATI, TLT, DOW, MHS, AMD, GES, NVDA, SMH, JDSU, UNP, SWN, VECO, HAS, SWKS, UAL, GMCR, FAZ, SINA, CAT, CF, IL

Moving Above 30 DMA = 6

ACN, ARUN, GLW, NDAQ, RVBD, WLT

Moving Below 30 DMA = 0

Staying Below 30 DMA

SNDK, ZION, CRM, ESI, F, FAS, LVS, SOHU, UNG, UCO, WDC, DE, NETL, PCX, AGU, AKS, ATW, FCX, IPI, LDK, SLB, TSL, CLF, DECK, CHL, NTES, POT, SWK, CMG, FWLT, JEC, VLO, JNPR, SLW, IAG, GS, CDE, STI, TBT, MOS, X, ICE, CAM, BAC, CRUS

Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral