SPX Breaks the Low of the High Day...

The SPX opened lower and formed a black candle equivalent to a bearish engulfing and closed -15.08 at 1,342.08. Tuesday was the high day in a three day rally. Wednesday broke the low of the high day which is an short term exit for some traders. Oil, gold and silver all formed bearish engulfing patterns while moving lower on Wednesday.

SPX black candle -1.11%
INDU black candle -1.02%
COMPQ black candle -0.93%
RUT bearish engulfing -1.78%

Breadth weakened on Wednesday as decliners led advancers 2.57 to 1 on the NYSE and 3.24 to 1 on the NASDAQ …

Exchange     NYSE      NASDAQ
Advancers       857            626
Decliners      2,207         2,029

Index      Chg.       Close      Direction      Confirmation
VIX         +1.04        16.95         Up                Yes – SPX
SOX        -3.70      440.89        Down           Yes – COMPQ

Leading stocks > +2% on Wednesday included FAZ, LVS

Losing stocks < -2.0% included UCO, SLW, FCX, WLT, MCP, PCX, ATI, VLO,IAG, DOW, CLF, SWKS, AKS, CDE, FAS, JDSU, MOS, POT, DE, SOHU, LDK, SWN, AGU, IPI, CF, CHL, SLB, CAM, CAT, X, URE, ATW, VECO, NYX

Positives –AMZN, NFLX, TLT

Negatives – SPX, VIX, INDU, COMPQ, RUT, breadth and sectors weakened, XLF, Euro, TNX, BIDU, GOOG,PCLN

Interest rates TNX -0.38 moved down and bond ETF TLT moved up 54 cents. Financial stocks XLF dropped -22 cents. The Euro fell -197 pips to 1.4209 at 5 pm on Wednesday.


All nine sectors moved lower on Wednesday. Healthcare XLV -0.17% and Consumer Staples XLP -0.19% were the strongest sectors.


Friday, Monday, Tuesday Bull Flag Entry Signals
On Wednesday
Continued to Rise –HUM, NVDA, CY, AMZN

Pulled Back – CROX, CTRP, XRAY, EXPE, ILMN, MICC, CHKP, TUP, VECO, ACN, GLW, NYX, V, ISRG, EXPD, FFIV, ILMN, SINA, ARUN, GMCR, MCP, VMW, BIDU, ESRX, A, AMD, ATI, CAT, CIEN, CSTR, DHR, DLR, DOW, GES, TIF, UNP, URE, WDC, WYNN, CTXS, BBBY, DTVSPX

Bull Flag Setups – F, SMH, SNDK, SWKS, SWN, UNG, ALTR, LLTC, QCOM, PCLN, CELG


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 -2.22 – black spinning top
AMZN +0.44 – white spinning top
BIDU -3.34 – black candle
GOOG -7.21 – black spinning top
NFLX +3.04 – white spinning top
PCLN -7.51 – black candle
QCOM -0.32 – black spinning top

NDX 100 stocks stronger than the NDX include TEVA, DELL, ADBE, ROST, INTC, NFLX, AMGN, ORLY, APOL, WCRX, NVDA, AMZN, CERN, VMED and ADSK.

Stocks weaker than the NDX include YHOO, JOYG, FSLR, MYL, CTRP, RIMM, BIDU, LINTA, AKAM, MU, LRCX, MICC, QGEN, CTXS and EBAY.

Stocks to Watch on Thursday
Holding Above 30 DMA
HUM, HLF, CSTR, DHR, A, ANF, DLR, TIF, V, NYX, CIEN, VMW, URE, ATI, TLT, DOW, MHS, AMD, GES, NVDA, SMH, JDSU, UNP, SWN, VECO, HAS, UAL, GMCR, CF, ACN, GLW, RVBD, ESI, FWLT, ZION
Moving Above 30 DMA = 3
CMG, FAZ, ICE
Moving Below 30 DMA = 10
CAT, CRM, IL, NDAQ, SNDK, STI, SWK, SWKS, VLO, WDC
Staying Below 30 DMA
ARUN, MCP, SINA, WLT, F, FAS, LVS, SOHU, UNG, UCO, DE, NETL, PCX, AGU, AKS, ATW, FCX, IPI, LDK, SLB, TSL, CLF, DECK, CHL, NTES, POT, JEC, JNPR, SLW, IAG, GS, CDE, TBT, MOS, X, CAM, BAC, CRUS

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