SPY Opens Lower...Forms Piercing Line...Closes Higher...

The SPX opened lower and closed up +6.86 to close at 1,278.36.  The SPX downward momentum that slowed last week started to reverse and showed moderate upward momentum with Monday’s support bounce.  There is a bullish divergence on the SPX/SPY MACD histogram.

Stocks to Watch on Monday CROX, TPX, INFA, TIF and UAL had an above average support bounce on Monday.  We discussed setups on CROX, TPX, HUM, HANS, NKE and SPY in our Monday night webcast.

 

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SPX white candle confirmed inverted hammer, below 30 DMA +0.54%

INDU white candle confirmed inverted hammer, below 30 DMA +0.63%

COMPQ piercing line, below 30 DMA +0.50%

RUT bullish engulfing, below 30 DMA +0.86%

Breadth strengthened as advancers led decliners 2.10 to 1 on the NYSE and 1.32 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      2,035            1,492

Decliners           965            1,129

Index              Chg.    Close    Direction    Confirmation

VIX                 -1.86     19.99      Down          Yes – SPX

SOX               +0.52   388.73      Up               Yes – COMPQ

Leading stocks > +2% on Monday included MCP, CROX, TPX, AGU, HUM, SLW, CDE, CMG, INFA, MOS, IAG, ATI, CAT, DLR, URE, FWLT, ICE, ARUN, SNDK, A, CVLT, TIBX, MNTA, LULU, TSCO, FOSL, SSW, HS, ULTA, HANS

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(click image to enlarge)

Losing stocks < -2.0% included SWKS, TSL, LDK, SINA, KKD, CREE, ANR, VECO, WLT

Positives – SPX, VIX, INDU, COMPQ, RUT, Euro, TNX, breadth and sectors strengthened, AMZN, QCOM

Negatives XLF, AAPL, PCLN,

Eight of nine sectors moved higher on Monday.  Healthcare XLV +1.01% and Industrials XLI +0.87% were the strongest sectors.

Bond ETF TLT moved up 12 cents.  Financials XLF moved down 1 cent.  The Euro moved down 1 pip to close at 1.4301 at 5 pm on Monday.

SPX

Resistance: 1,278, 1,288, 1,300

Support: 1,267, 1,257, 1,249

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 -4.94– hammer, below 30 DMA

AMZN +1.35 – small bullish engulfing, below 30 DMA

BIDU +0.60 – inverted hammer, below 30 DMA

GOOG -0.44 – dragonfly doji, potential morning star, below 30 DMA

NFLX -0.04 – spinning top, close below 30 DMA

PCLN -3.57 – spinning top, below 30 DMA

QCOM +0.79 – piercing line, below 30 DMA

NDX 100 stocks stronger than the NDX include BIIB, CELG, FSLR, MATK, DLTR, ORCL, WYNN, WFM, ISRG, SNDK, VOD and COST.

Stocks weaker than the NDX include RIMM, LINTA, ESRX, AAPL, INFY, TEVA, NVDA, BRCM, LRCX AKAM, PCLN and FLIR.

Stocks to Watch on Tuesday

Holding Above 30 DMA

TIF, KKD, FAZ, ESI, CROX, GMCR, TLT, ZION

Moving Above 30 DMA = 8

COH, DLR, HUM, ICE, INFA, TPX, UAL, UNP

Moving Below 30 DMA = 0

Staying Below 30 DMA

AKS, CF, HLF, NGLS, UNG, ACN, AGU, CHL, CRM, FCX, FFIV, IAG, POT, SLB, TBT, VMW, CMG, SWN, CY, V, VECO, ATW, CREE, RVBD, ANF, GES, NVDA, SINA, ANR, WTW, A, CLF, CRUS, CSTR, DECK, DHR, ENTR, FWLT, SMH, SNDK, STI, URE, 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