SPX Breaks 1,300 Falls to 1,286 Support as Financials Slump Further...

The SPX broke its 1,300 support and fell to the 1,288 support level closing down -13.99 at 1,286.17.  Many stocks gave bearish entry signals with a bounce down from resistance or a break of support.  NFLX pulled back after a 45 point rise over the past three weeks.

(click image to enlarge)

SPX large black candle, close below 30 DMA -1.08%

INDU black candle, below 30 DMA -0.50%

COMPQ large black candle, below 30 DMA -1.11%

RUT large black candle, below 30 DMA -1.59%

Breadth weakened as decliners led advancers 3.90 to 1 on the NYSE and strengthened slightly as decliners led advancers  3.40 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         618               597

Decliners        2,415            2,031

Index              Chg.    Close    Direction    Confirmation

VIX                 +0.54     18.49     Up              Yes – SPX

SOX               -3.18    415.34     Down         Yes – COMPQ

Leading stocks > +2% on Monday included FAZ

Losing stocks < -2.0% included NTES, MCP, SOHU, FAS, SLW, ESI, RVBD, BAC, LVS, AKS, CREE, ARUN, DECK, CSTR, TPX, MOS, UAL, UCO, CAM, ZION, ATW, JDSU, FWLT, CIEN, ANR, WTW, WLT, ANF, URE, JNPR, NDAQ, CRUS, AGU, FFIV, SLB, SNDK, CF, IL, NVDA, POT, NGLS, CMG

Positives – TLT, VIX, Gold, Silver

Negatives – SPX, INDU, RUT, COMPQ, NDX, breadth weakened, XLE, XLF, AAPL, AMZN, BIDU, NFLX

All nine sectors moved lower on Monday.  Utilities XLU -0.45% and Consumer Staples XLP -0.51% were the strongest sectors.  Energy XLE -2.26% was the weakest sector.

Bond ETF TLT moved down 73 cents.  The Euro moved down 53 pips to 1.4578 at 5 pm on Monday.  Financials XLF -1.91% moved down 29 cents.

Bull Flag Setups for Tuesday: TIF, COH, CY, FFIV, VECO, GMCR, KKD, CMG, CF, IFNA, CRM, V, MA GES, NVDA, POT, AGU, CHL, HLF, HUM, CROX, WTW, OTEX, NFLX

(click image to enlarge)

SPX

Resistance: 1,300, 1,310, 1,321

Support: 1,288, 1,278, 1,267

The short term 3 day trend is down.

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 -5.40 – bearish engulfing, below 30 DMA

AMZN -2.63 – black candle, below 30 DMA

BIDU -6.24 – large black candle confirm bearish harami, below 30 DMA

GOOG -2.02 – spinning top, below 30 DMA

NFLX -11.11 – gap open bearish engulfing, above 30 DMA

PCLN -4.93 – spinning top, below 30 DMA

QCOM -0.56 – inverted hammer, close below 30 DMA

NDX 100 stocks stronger than the NDX include DELL, SBUX, JOYG, INFY, LIFE, CERN, PCAR, CTSH, INTC, MSFT, MCHP, MAT, FISV and XLNX.

Stocks weaker than the NDX include CTRP, BIDU, NFLX, WCRX, AKAM, NTAP, APOL, DTV, EXPE, EBAY, FFIV, SPLS, SNDK, EXPD and NVDA.

Stocks to Watch on Tuesday

Holding Above 30 DMA

HLF, DLR, TIF, COH, TLT, CY, FFIV, VECO, GMCR, KKD, FAZ, CMG, CF, INFA, CRM, IAG, UNG, ESI, SWN

Moving Above 30 DMA = 0

Moving Below 30 DMA = 10

AGU, ATW, CHL, CREE, HUM, POT, RVBD, SLB, V, VMW

Staying Below 30 DMA

ACN, ANF, GES, NGLS, NVDA, SINA, UNP, ANR, TPX, WTW, A, AKS, CLF, CRUS, CSTR, DECK, DHR, ENTR, FCX, FWLT, ICE, 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, TBT, MOS, X, CAM, BAC

Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down