Tuesday, June 28, 2011

Pre-Market Pause Leads to SPX Bounce Continuation as XLF Rallies and NKE Races Higher...

Dave will be teaching his Thursday Stocks Trading Room Thursday morning, AT Trading Room Thursday evening and will be in the Weekly Wrap on Friday...




The pre-market pause this morning led to a SPX support bounce continuation as the SPX closed up +16.57 at 1,296.67.  Interest rates TNX rose +1.18 as bonds TLT fell 77 cents and Financials XLF rose 7 cents.

The rally followed a strong earnings report from NKE +10.14% which closed +8.28 at 89.90.

NDX leaders AAPL, AMZN, BIDU, GOOG, NFLX, PCLN and QCOM all rose on Tuesday.  Only GOOG and QCOM remain below their 30 DMA.

Earnings still to come this week include FDO, GIS and MON on Wednesday, APOL, STZ, DRI and MKC on Thursday.

Technically the SPX broke through its 1,288 resistance area and closed at just below its 1,300 resistance.  This is the SPX’s highest close since June 6.
(click image to enlarge)
SPX large white candle, below 30 DMA +1.29%
INDU large white candle, below 30 DMA +1.21%
COMPQ large white candle, close above 30 DMA +1.53%
RUT large white candle, close above 30 DMA +1.51%

Breadth strengthened as advancers led decliners 4.01 to 1 on the NYSE and 2.79 to 1 on the NASDAQ

Exchange       NYSE        NASDAQ
Advancers      2,432            1,903
Decliners           605               681

Index              Chg.    Close    Direction    Confirmation
VIX                 -1.39     19.17      Down         Yes – SPX
SOX               +5.25  400.52      Up              Yes – COMPQ

Leading stocks > +2% on Tuesday included NKE, SINA, ARUN, CRUS, LVS, UCO, HLF, SLB, GMCR, ATI, CAM, SOHU, FCX, A, ANR, ACN, AKS, RVBD, CAT, CAT, PCX, TSL, ATW, SWKS, SLW, ANF, ENTR, DECK, MHS, JDSU, ESI, COH, LDK, WTW, HUM, TPX, AGU, SWN, FWLT, UNG, KKD, NETL, NGLS, NTES, WLT, CLF, DE, CF, CROX, CDE, TIF

Losing stocks < -2.0% included

Positives – SPX, VIX, INDU, COMPQ, RUT, XLE, XLF, XLF, TNX, TBT, BIDU, GOOG, NFLX, PCLN, QCOM, Euro, breadth and sectors strengthened

Negatives – TLT

All nine sectors moved higher on Tuesday.  Energy XLK +2.92%, Materials XLB +1.94% and Consumer Discretionary XLY +1.90% were the strongest sectors.

The Euro moved up 84 pips to close at 1.4369 at 5 pm on Tuesday.

SPX
Resistance: 1,300, 1,310, 1,321
Support: 1,288, 1,278, 1,267

The short term 3 day trend is up.
The six-month trend is neutral.
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 +3.22– spinning top, close above 30 DMA
AMZN +1.10 – spinning top, above 30 DMA
BIDU +3.00 – white candle, above 30 DMA
GOOG +10.85 – large white candle, below 30 DMA
NFLX +4.97 – white candle, above 30 DMA
PCLN +4.13 – white candle, close above 30 DMA
QCOM +0.56 – white candle, below 30 DMA

NDX 100 stocks stronger than the NDX include CTRP, FSLR, GMCR, VRTX, FAST, ERTS, WYNN, BIIB, WFM and SBUX.

Stocks weaker than the NDX include VOD, FLEX, GRMN, FFIV, VMED, ADBE, VRSN and MRVL.

Stocks to Watch on Wednesday
Holding Above 30 DMA
TIF, KKD, FAZ, CROX, GMCR, HUM, INFA, TPX, AGU, CMG, CRM, HLF, NETL, VMW, ATW, NGLS, CHL, CLF, ENTR, ESI, ACN, CSTR, ARUN, FFIV, ICE, POT, RVBD, TBT
Moving Above 30 DMA = 21
A, AKS, CAM, CAT, CF, COH, CRUS, DECK, DLR, DOW, FCX, LDK, LVS, NKE, NTES, PCX, SLB, TSL, UNP, WDC, ZION
Moving Below 30 DMA = 0

Staying Below 30 DMA
TLT, GES, SWK, UAL, UNG, IAG, SWN, CY, V, VECO, CREE, ANF, NVDA, SINA, ANR, WTW, DHR, FWLT, SMH, SNDK, STI, URE, MHS, HAS, JDSU, JNPR, GLW, ATI, CIEN,  F, IL, NDAQ, SWKS, MCP, WLT, FAS, SOHU, UCO, DE, SLW, GS, CDE, MOS, X, BAC

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

2 comments:

Anonymous said...

bounce and break

Anonymous said...

bounce and break