SPX Bounces From Lower Low on Bullish Divergence...

The SPX formed a morning star pattern and rose +16.04 to close at 1,287.87. The SPX broke out of short term diagonal resistance and rose the 1,288 horizontal resistance.

Interest rates TNX and Financials XLF rose and bonds TLT fell, which is generally positive for the SPX. Numerous stocks listed below gave either a support bounce entry, a bull flag entry or a cross above the 30 DMA entry on Tuesday.SPX large white candle confirms bullish harami, below 30 DMA +1.26%

We hope you followed your rules and were able to enter positions based on the bounce that occurred on Tuesday.


INDU morning star, below 30 DMA +1.03%
COMPQ morning star, below 30 DMA +1.48%
RUT bullish engulfing, below 30 DMA +1.85%

Breadth strengthened as advancers led decliners 4.90 to 1 on the NYSE and 3.41 to 1 on the NASDAQ …

Exchange      NYSE       NASDAQ
Advancers      2,521         2,045
Decliners            514            598

Index      Chg.      Close     Direction     Confirmation
VIX          -1.35       18.26       Down            Yes – SPX
SOX       +7.67     406.75       Up                 Yes – COMPQ

Leading stocks > +2% on Tuesday included KKD, TSL, SOHU, SINA, ENTR, SWKS, LDK, TPX, WDC, GMCR, CAM, CRUS, ANR, PCX, UCO, MCP, FWLT, AKS, ARUN, JDSU, DECK, RVBD, CDE, CSTR, FCX, CLF, URE, A, TBT, SWK, CF, ATI, TIF, IAG, ANF, SLW, NTES, CRM, CAT, X, WLT, MOS, GES, NETL, FFIV, VMW, ICE, DE, F, SLB, CMG, ACN, FAS, ATW, AGU, LVS, DHR

Losing stocks < -2.0% included FAZ

Positives – SPX, VIX, INDU, COMPQ, NDX, RUT, TNX, XLE, XLB, XLI, XLY, AAPL, AMZN, BIDU, NFLX, QCOM, Euro, breadth and sectors strengthened

Negatives – TLT, PCLN

All nine sectors moved higher on Tuesday. Energy XLE +2.13% and Basic Materials XLB +1.93% were the strongest sectors.

Bond ETF TLT moved down $1.46. Financials XLF moved up 7 cents. The Euro moved up 25 pips to close at 1.4440 at 5 pm on Tuesday.



Bounces Moved Higher on Tuesday: ICE, HUM, AGU, TPX, ATI, A, DHR, FCX, SLB, ESI, IAG, POT

Support Bounce Entry on Tuesday: ANF, SPY, ACN, ENTR, FWLT

Bull Flag Entry on Tuesday: UNP, VMW, TIF, CROX, GES, HLF, GMCR, KKD, MA, CMG

Support Bounce Setups for Wednesday: NVDA, ATW, RVBD, ARUN, CY


Bull Flag Setups for Wednesday: CHL, NFLX, INFA, CRM, WTW, MRVL, CF, COH


SPX
Resistance: 1,288, 1,300, 1,310
Support: 1,278, 1,267, 1,257

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 +5.84 – gap up white candle, below 30 DMA
AMZN +3.67 – hammer, at horizontal support, below 30 DMA
BIDU +6.97 – gap up bullish engulfing, below 30 DMA
GOOG +3.64 – inverted hammer, below 30 DMA
NFLX +3.90 – hammer, above 30 DMA
PCLN -1.41 – spinning top, below 30 DMA
QCOM +1.18 – morning star, below 30 DMA

NDX 100 stocks stronger than the NDX include BIDU, GMCR, CTRP, BIIB, JOYG, PCAR, STX, FAST, LLTC, BRCM, LIFE, FSLR, WYNN, KLAC and BBBY.

Stocks weaker than the NDX include RIMM, VRTX, SHLD, GILD, LINTA, CELG, EBAY, PCLN, CTSH and ALXN.

Stocks to Watch on Wedesnday
Holding Above 30 DMA
HLF, DLR, TIF, KKD, FAZ, CF, UNG, ESI, AGU, HUM, NGLS, POT, CROX, CHL
Moving Above 30 DMA = 11
AKS, CRM, FCX, FFIV, GMCR, IAG, ICE, SLB, TBT, UNP, VMW
Moving Below 30 DMA = 1
TLT
Staying Below 30 DMA
CMG, INFA, SWN, CY, V, VECO, COH, ATW, CREE, RVBD, ACN, ANF, GES, NVDA, SINA, ANR, TPX, WTW, A, CLF, CRUS, CSTR, DECK, DHR, ENTR, FWLT, SMH, SNDK, STI, URE, ZION, UAL, MHS, HAS, JDSU, JNPR, SWK, ARUN, GLW, ATI, CIEN, DOW, F, CAT, IL, NDAQ, SWKS, WDC, MCP, WLT, FAS, LVS, SOHU, UCO, DE, NETL, PCX, LDK, TSL, NTES, SLW, GS, CDE, MOS, X, CAM, BAC

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