SPX Forms Spinning Top as Debt Ceiling Overhangs Stocks...

The SPX closed under 1,300 as other stocks like CME, DECK, EXPE and PCLN moved sharply higher.  Selectivity continues to rule this earnings season.

The VIX 25.25 made its highest closing high since March 17.  Gold hit a new all-time high closes at 1,629.  TNX 28.05 made its lowest close November 30, 2010.  Bonds made their highest close in 2011.

In spite of these negatives for stocks both Tom and I said in the Weekly Wrap on Friday that the non-confirmations did not suggest an unraveling of stocks at this time.  Both our opinions come from years of watching market action and we both sensed more underlying strength than seemed apparent from the readings on the VIX, Gold, TNX and bonds.

What were the positive non-confirmations?  The SPX was at mid-channel.  Financials were holding at support.  The Euro was relatively strong closer to resistance.  Leading stocks AAPL, AMZN, BIDU and GOOG were still in strong up trends and institutions were still paying up big time for good earnings numbers even on Friday on CME, DECK, EXPE, VRTX and CERN.

The SPX closed down -8.39 at 1,292.28. 

(click image to enlarge)

NDX white spinning top, bull flag setup, above 30 DMA -0.38%

SPX black candle, below 30 DMA -0.65%

INDU black candle, below 30 DMA -0.79%

COMPQ white candle, close below 30 DMA -0.36%

RUT hammer, below 30 DMA -0.29%

Breadth weakened slightly as decliners led advancers 2.03 to 1 on the NYSE and strengthened as decliners led advancers 1.36 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         995           1,091  

Decliners        2,022           1,484

Leading stocks > +2% on Friday included DECK, UAL, WTW, LDK

Losing stocks < -2.0% included SWN, CSTR, ENTR, IAG, TBT IL, VECO, SINA, WDC, UCO, SLW, CF, POT, FCX

72 of the NDX 100 companies have reported earnings and with 28 left to report, twelve more will report this week:  ATVI, CMCSA, CTRP, CTSH, DTV, EXPD, FSLR, GRMN, HSIC, PCLN, SIRI and WCRX.

Earnings Next Week

Monday Aug 1= CTRP, HLF, HUM, SOHU

Tuesday Aug 2 = CTSH, EXPD, HSIC, SIRI, COH, FWLT

Wednesday Aug 3 = ATVI, CMCSA, AGU, ATW, ENTR, ICE, WLT

Thursday Aug 4 = DTV, FSLR, GRMN, PCLN, ANR, CF, SINA

Friday Aug 5 = WCRX, WTW

NDX Setups for Monday:  AAPL, AMZN, BIDU, WYNN

(click image to enlarge)

NDX Setups for Monday:  BRCM, SNDK, APOL, FLEX

(click image to enlarge)

More NDX Setups:  ALXN, BBBY, CERN, CHKP, EBAY, ESRX, EXPE, GILD, GMCR, GOOG, ISRG, VRTX

Other Setups for Monday:  ZAGG, SINA, ANF, ESI, MOS, MCP, GS, SWKS, TPS, CMG, LVS, NTES, SLB, NKE, CREE, WTW, FOSL, LULU, PRGO, UA, CGA, EZPW, HANS, ULTA, NTRI


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 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 -1.34 – white spinning top, bull flag setup, above 30 DMA

AMZN -1.38 – white spinning top, bull flag setup, above 30 DMA

BIDU -1.27 – white spinning top, bull flag setup, above 30 DMA

GOOG -7.25 – inverted hammer, bull flag setup, above 30 DMA

NFLX -0.63 – white candle, below 30 DMA

PCLN +15.36 – large white candle, bounce entry, above 30 DMA

QCOM -0.21 – white spinning top, below 30 DMA

NDX 100 stocks stronger than the NDX include EXPE, VRTX, CERN, VOD, ILMN, PCLN, ISRG, AMGN, LINTA and MXIM.

Stocks weaker than the NDX include KLAC, LRCX, BMC, YHOO, SRCL, STX, VRSN, SYMC, DELL and GILD.

Stocks to Watch on Monday

Holding Above 30 DMA

CROX, CMG, ATW, POT, CAM, COH, DECK, FCX, LVS, NKE, NTES, SLB, SWN, V, SINA, SOHU, ANF, CDE, SLW, CF, IAG, MOS, DLR, WLT, CHL, MCP, MHS, GS, SWKS, FAZ, TPX, GMCR, SNDK, TLT

Moving Above 30 DMA = 3

CREE, ESI, WTW

Moving Below 30 DMA = 6

ACN, AGU, DOW, UCO, UNP, VMW

Staying Below 30 DMA

CLF, HLF, NGLS, ANR, ATI, CAT, CIEN, CRM, CRUS, CY, DLR, FAS, ICE, JNPR, LDK, NDAQ, SMH, STI, TIF, URE, WDC, AKS, CSTR, DE, PCX, TBT, X, ZION, KKD, NETL, DHR, FFIV, SWK, UNG, ARUN, RVBD, HUM, ENTR, INFA, A, F, GES, HAS, BAC, TSL, UAL, VECO, NVDA, FWLT, JDSU, GLW, IL

Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down

SPX Reverses Early Gains...Closes at 1,300 Support...

Dave is traveling from Newark early in the morning and will post again Friday after the Weekly Wrap...See you there...

The SPX closed down -4.22 at 1,300.67.

The SPX continues to drift lower.  Remember a break of support indicates the most probable target of the next level of support.


Leading stocks > +2% on Thursday included GMCR, CROX, CAM, MCP, CY, VECO, NDAQ, CSTR

Losing stocks < -2.0% included UAL, JDSU, CLF, IL, JNPR, PCX, ENTR, ATI, ESI, AKS, SWKS, UNG

SPX
Resistance: 1,310, 1,321, 1,330
Support: 1,300, 1,288, 1,278

The short term 3 day trend is down.
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 -0.77 – doji, bull flag setup, above 30 DMA
AMZN +1.38 – spinning top, new high close, above 30 DMA
BIDU -2.90 – black candle, bull flag setup, above 30 DMA
GOOG +3.72 – white spinning top, bull flag setup, above 30 DMA
NFLX -2.80 – white spinning top, below 30 DMA
PCLN +5.08 – white spinning top, bounce on 30 DMA, above 30 DMA
QCOM +0.40 –bullish harami, below 30 DMA

NDX 100 stocks stronger than the NDX include GMCR, SYMC, ILMN, CTXS, WFM, SBUX, CSCO, FAST, TEVA and MSFT.

Stocks weaker than the NDX include AKAM, BMC, SRCL, LIFE, APOL, ORLY, EXPE, WYNN, VRSN and CMCSA.

Stocks to Watch on Friday
Holding Above 30 DMA
CROX, AGU, CMG, VMW, ATW, ACN, POT, CAM, COH, DECK, FCX, LVS, NKE, NTES, SLB, SWN, V, SINA, SOHU, ANF, CDE, SLW, CF, IAG, MOS, DLR, WLT, CHL, MCP, UCO, MHS, GS, SWKS, FAZ, TPX
Moving Above 30 DMA = 5
DOW, GMCR, SNDK, TLT, UNP
Moving Below 30 DMA = 5
CLF, ESI, HLF, NGLS, WTW
Staying Below 30 DMA
ANR, ATI, CAT, CIEN, CRM, CRUS, CY, DLR, FAS, ICE, JNPR, LDK, NDAQ, SMH, STI, TIF, URE, WDC, AKS, CSTR, DE, PCX, TBT, X, ZION, CREE, KKD, NETL, DHR, FFIV, SWK, UNG, ARUN, RVBD, HUM, ENTR, INFA, A, F, GES, HAS, BAC, TSL, UAL, VECO, NVDA, FWLT, JDSU, GLW, IL

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

Futures Point to a Slightly Higher Open...GMCR Gaps Up 20%, CLF Gaps Down...

BMO – ES +2.00 and NQ +8.50 futures are slightly higher about 30 minutes before the open in pre-market trading and point to a slightly higher open on Thursday…volume is moderate for pre-market with more stocks quoting up than down…Financial stocks, XLF up 2 cents on just 20,100 volume in pre-market…

TLT is up 57 cents and the Euro is down 90 pips in premarket trading…

NDX leaders AAPL, AMZN, BIDU, GOOG and QCOM are quoting higher while NFLX and PCLN are lower in pre-market trading…

GMCR, CROX are gapping up after earnings…AKAM and LRCX are gapping lower…

Dave’s Insight for Thursday: Wednesday’s large black candle’s mid section is R!…Earnings reactions continue to gap up and gap down…Follow your rules for entries and exits…Trade each chart according to your rules…Watch XLF, a key factor as to whether when the SPX will reverse its current pull back…

SPX
Resistance: 1,310, 1,321, 1,330
Support: 1,300, 1,288, 1,278

Quoting Down – CLF, NFLX, AKAM, LIFE, ANR, SWK, MHS, URE, UCO, SLW, A, TBT, TSL, FWLT, PCLN, BMC, LRCX, CEPH, CTXS, KLAC, APOL, ESRX, CHKP, ATVI, ADP, SHLD

Quoting Up – GMCR, MCP, CAM, CROX, POT, SINA, DECK, CMG, MOS, SOHU, FFIV, TIF, CF, TPX, INFA, CSTR, CRM, DHR, TLT, HUM, ARUN, DLR, ICE, SNDK, AGU, GES, SWKS, DOW, V, CELG, WFM, WYNN, AAPL, AMZN, SYMC, GOOG, SBUX, CTSH, BIDU, MYL, FFIV, JOYG, ORLY, CSCO, GOOG, RIMM

SPX Falls 27 Points, Closes Below 30 DMA...

Dave is traveling this evening to Newark the the TD Road Show with Tom Sosnoff and Don Kaufman Thursday evening in Jersey City...

Dave and Ben will cohost the StocksTrading Room Thursday morning at 7:30 am MDT...don't miss us tomorrow morning...


AAPL, BIDU, GOOG and PCLN move lower...

AMZN and NFLX rise...

Today was a broad selloff as decliners led advancers 10.80 to 1 on the NYSE
Advancers 259
Decliners 2798

The SPX, INDU and RUT closed below their 30 DMA. The COMPQ closed at its 30 DMA and the NDX closed well above its 30 DMA.

The SPX closed down -27.05 at 1,304.89.


NDX large black candle, above 30 DMA -2.56%
SPX large black candle, close below 30 DMA -2.03%
INDU large black candle, close below 30 DMA -1.59%
COMPQ large black candle, above 30 DMA -2.65%
RUT large black candle, close below 30 DMA -2.95%


Leading stocks > +2% on Wednesday included TPX, FAZ, LVS
 
Losing stocks < -2.0% included JNPR, CIEN, KKD, JDSU, ARUN, NETL, GLW, LDK, FAS, ENTR, PCX, HUM, TSL, URE, SLW, CY, A, RVBD, MCP, ATI, VMW, DECK, CREE, VECO, ANF, FFIV, F, GES, GMCR, UCO, SNDK, CRM, SINA, NVDA, IL, UAL, INFA, SWK, CAT, STI, ANR, HLF, WTW, ZION, SWKS, FWLT, CAM, SMH, CDE, NDAQ, BAC, POT, TIF, IAG, AKS, COH, DLR, WLT, FCX, CSTR, CMG, CAN, WDC, ICE, CRUS, ESI, SLB, DOW, AGU, DHR, CF, MOS, CLF, GS, ATW


SPX
Resistance: 1,310, 1,321, 1,330
Support: 1,300, 1,288, 1,278

The short term 3 day trend is down.
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 -10.82 – large black candle, close below low of high day, above 30 DMA
AMZN +8.33 – black candle, new high close, above 30 DMA
BIDU -3.12 – close below low of high day, above 30 DMA
GOOG -15.30 – large black candle, close below low of high day, above 30 DMA
NFLX +2.51 – doji, below 30 DMA
PCLN -16.46 – large black candle, bear flag entry, above 30 DMA
QCOM -0.27 –large black candle, close below 30 DMA

NDX 100 stocks stronger than the NDX include AMZN, GILD, NFLX, CEPH, FISV, DLTR and QGEN.

Stocks weaker than the NDX include ILMN, CHRW, RIMM, NTAP, MU, CTSH, CTXS, ADSK, ORCL and FFIV.

Stocks to Watch on Thursday
Holding Above 30 DMA
CROX, AGU, CMG, HLF, VMW, ATW, NGLS, CLF, ESI, ACN, POT, CAM, COH, DECK, FCX, LVS, NKE, NTES, SLB, SWN, V, SINA, SOHU, WTW, ANF, CDE, SLW, CF, IAG, MOS, DLR, WLT, CHL, MCP, UCO, MHS, GS, SWKS
Moving Above 30 DMA = 2
FAZ, TPX
Moving Below 30 DMA = 22
ANR, ATI, CAT, CIEN, CRM, CRUS, CY, DLR, DOW, FAS, GMCR, ICE, JNPR, LDK, NDAQ, SMH, SNDK, STI, TIF, UNP, URE, WDC
Staying Below 30 DMA
AKS, CSTR, DE, PCX, TBT, X, ZION, CREE, KKD, NETL, TLT, DHR, FFIV, SWK, UNG, ARUN, RVBD, HUM, ENTR, INFA, A, F, GES, HAS, BAC, TSL, UAL, VECO, NVDA, FWLT, JDSU, GLW, IL

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

Futures Point to a Lower Open as AMZN, TPX and LVS Gap Up...

BMO – ES -4.50 and NQ -12.75 futures are lower about 20 minutes before the open in pre-market trading and point to a lower open on Wednesday…volume is light for pre-market with more stocks quoting down than up…Financial stocks, XLF down 10 cent on just 2,200 volume in pre-market…

TLT is down 25 cents and the Euro is down 56 pips in premarket trading…

NDX leaders AMZN and NFLX are quoting higher while AAPL, BIDU, GOOG, PCLN and QCOM are lower in pre-market trading…

AMZN, TPX, LVS are gapping up after earnings…JNPR and ILMN are gapping lower…

Dave’s Insight for Wednesday:  The SPY/SPX are drifting lower and you must follow your rules to protect profits and exit trades according to your rules…Price is below Thursday’s S1 and may open below its S2 which are key short term support levels…Earnings reactions continue to gap up and gap down…Follow your rules for entries and exits…Trade each chart according to your rules…Watch XLF is lower this morning and is still a key factor as to whether when the SPX will reverse its current pull back…

SPX

Resistance: 1,344, 1,359, 1,370

Support: 1,330, 1,321, 1310

Quoting Down – JNPR, ILMN, WTW, ATI, FFIV, VMW, CMG, CRM, NTEL, WLT, SINA, CIEN, GS, UCO, SLV, CAT, GLW, PCX, AGU, MOS, ARUN, MHS, MCP, UNP, RVBD, ANR, JDSU, CLF, TLT, FAS, DE, V, POT, FWLT, SWKS, V, CREE, URE, NKE, SNDK, CTXS, GOOG, CHKP, AAPL, LLTC, CHRW, BIDU, FFIV, LIFE, FSLR, ESRX, PCLN, ALTR, VMED, RIMM, MXIM, DTV, QCOM

Quoting Up – AMZN, TPX, LVS, ESI, DOW, FAZ, GMCR, SLW, VECO, NDAQ, NTES, CSTR, SOHU, TBT, CROX, NFLX, WYNN, CTSH, SIAL, SBUX, WFM, ERTS

AMZN, TPX, LVS Rise After-hours Following Earnings...SPX Pulls Back...

After the close on Tuesday AMZN +6.36% rose 13.62, TPX +8.82% rose 5.82, LVS +4.73% rose 2.19, while ILMN -7.82% fell -5.45, JNPR -17.00% fell -5.30, PNRA -4.86% fell -6.28 after reporting earnings.

Earnings losers that reported this morning included AKS -17.46%, PCAR -10.68%, X -8.29%, AMLN -7.29%, SIAL -4.82%, UA -4.00%, F -1.75%

Earnings winners that reported this morning included RF +3.38%, LMT +1.92%, BIIB +0.97%

BIDU +5.00% rose 7.82, BRCM +9.42% rose 3.29, TXN +0.32% rose 10 cents, while NFLX -5.19% fell -14.62 closed $11 higher than it opened.

The SPX closed just below Thursday’s S1 level down -5.49 at 1,331.94. 

(click image to enlarge)

NDX white spinning top, above resistance, above 30 DMA +0.22%

SPX black candle, bull flag, above S2, above 30 DMA -0.41%

INDU black candle, flag, potential ascending triangle, above 30 DMA -0.73%

COMPQ spinning top, above 30 DMA -0.10%

RUT black candle, above 30 DMA -0.79%

Breadth strengthened as decliners led advancers 1.97 to 1 on the NYSE and 1.89 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      1,001              891  

Decliners        1,976           1,687

Index         Change    Close    Direction    Confirmation

VIX               +0.88      20.23       Up               Yes – SPX

SOX             +3.39     406.47       Up               No – COMPQ

We alerted you this morning to the horizontal breakout setup and entry on MCP.  SWKS gave an S1 support bounce flag setup and entry.

Leading stocks > +2% on Tuesday included MCP, SOHU, NTES, VECO, SWKS

Losing stocks < -2.0% included AKS, PCX, X, CSTR, ANR, CROX, A, WLT, CLF, NVDA, ATI, DHR, ZION

Positives – NDX, SOX, Euro, TLT, AAPL, AMZN, BIDU, GOOG, PCLN

Negatives – SPX, INDU, RUT, TNX, NFLX

Only one of nine sectors moved higher on Tuesday.  Technology XLK +0.45% and Financials XLF -0.13% were the strongest sectors. 

Interest rates TNX closed -0.53, bond ETF TLT rose 65 cents and Financials XLF was down 2 cents.  The Euro moved up 134 pips to close at 1.4375 at 5 pm on Tuesday.

SPX

Resistance: 1,344, 1,359, 1,370

Support: 1,330, 1,321, 1310

The short term 3 day trend is down.

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 +4.91 – white candle continuation, new high close, above 30 DMA

AMZN +0.69 – black candle, above 30 DMA

BIDU +7.82– white candle breakout, above 30 DMA

GOOG +3.54 – white candle continuation, above 30 DMA

NFLX -14.62 – – large white candle, close below 30 DMA

PCLN +3.92– white candle, not confirm shooting star, above 30 DMA

QCOM -0.27 – spinning top, barely confirms shooting star, above 30 DMA

NDX 100 stocks stronger than the NDX include BRCM, BIDU, URBN, APOL, RIMM, CTRP, VOD, SPLS, FFIV and YHOO.

Stocks weaker than the NDX include PCAR, NFLX, SIAL, ILMN, HSIC, SHLD, LIFE, NVDA, JOYG and XRAY.

Stocks to Watch on Wednesday

Holding Above 30 DMA

TIF, CROX, GMCR, AGU, CMG, HLF, VMW, ATW, NGLS, CLF, ESI, ACN, ICE, POT, CAM, CAT, COH, CRUS, DECK, DLR, FCX, LVS, NKE, NTES, SLB, SWN, URE, V, SINA, SOHU, WTW, ANF, CDE, SLW, CF, IAG, ANR, ATI, MOS, DLR, WLT, CHL, CY, MCP, UCO, MHS, DOW, FAS, GS, STI, UNP, CIEN, CRM, LDK, SMH, SNDK, SWKS, WDC

Moving Above 30 DMA = 2

JNPR, NDAQ

Moving Below 30 DMA = 8

AKS, CSTR, DE, PCX, TBT, TPX, X, ZION

Staying Below 30 DMA

CREE, KKD, NETL, TLT, DHR, FFIV, SWK, UNG, ARUN, FAZ, RVBD, HUM, ENTR, INFA, A, F, GES, HAS, BAC, TSL, UAL, VECO, NVDA, FWLT, JDSU, GLW, IL

Intermediate Term Market Trend: Neutral

Short Term Market Trend: Neutral

BIDU, BRCM, SOHU Gap Up...NFLX, PCAR Gap Down...Futures Point to Flat Open...

11:00 am ET - Breakout entry on MCP...Financials XLF 15.22 +0.01 turn positive

10:45 am ET - Breakout setup on MCP


BMO – ES +1.50 and NQ +1.75 futures are slightly higher about 20 minutes before the open in pre-market trading and point to a flat to slightly higher open on Tuesday…volume is light for pre-market with more stocks quoting up than down…Financial stocks, XLF down 1 cent on 17,900 volume in pre-market…

TLT is up 19 cents and the Euro is up 92 pips in premarket trading…

NDX leaders AAPL, AMZN, BIDU, GOOG and QCOM are quoting higher while NFLX and PCLN are lower in pre-market trading…

NFLX is gapping lower and BIDU and BRCM are gapping up after earnings…SOHU is gapping up benefiting from BIDU earnings…

Dave’s Insight for Tuesday:  Not withstanding the sensationalized news on the U.S. debt ceiling negotiations the market closed above Thursday’s S1 level on the SPX….this is significant with respect to the buying strength…obviously if a deal is not done by Aug. 2, big money could become net sellers…for now market action is suggesting big money concludes that a deal will be done…Continue to watch Thursday’s S1 and S2 as key short term support levels…Earnings are continuing this week…Follow your rules for entries and exits…Trade each chart according to your rules…Watch XLF as a key factor for the SPX to reverse its pull back…

Reported earnings after the close Monday: BIDU, NFLX, BRCM, TXN
Reporting BMO Tuesday morning: AKS, BIIB, F, LMT, PCAR, RF, SIAL, UA, X

Reporting after the close Tuesday:  AMLN, AMZN, CHRW, FISV, GILD, ILMN, JNPR, LLTC, LVS, PNRA, TPX, USNA

SPX

Resistance: 1,344, 1,359, 1,370

Support: 1,330, 1,321, 1310

Quoting Down – NFLX, PCAR, HUM, ESI, X, PCX, AKS, ATI, NVDA, MHS, GES, A, CREE, VMW, SIAL, ILMN, QGEN

Quoting Up – BIDU, BRCM, SOHU, SINA, FFIV, CF, SMH, GMCR, CSTR, CHL, DECK, V, NTES, FCX, MOS, CLF, POT, SWKS, NETL, CAT, URE, DE, JNPR, SNDK, CRUS, RVBD, LVS, GOOG, SHLD, AMZN, AAPL, VOD, ALXN, VOD

AAPL New High Close, BIDU Gaps Up, NFLX Down in After-Hours...

After the close on Monday BIDU +6.52% rose $10.20, BRCM +8.11% rose $2.83 while NFLX -10.18% fell -$28.65 after reporting earnings.

AAPL and BIDU each made a new high close on Monday..

The SPX closed above Thursday’s S1 level down -7.59 at 1,337.43. 

(click image to enlarge)

NDX white candle breakout, above 30 DMA -0.22%

SPX black candle, above S1, above 30 DMA -0.56%

INDU black candle confirms bearish harami, above 30 DMA -0.70%

COMPQ white candle, above 30 DMA -0.56%

RUT white candle, above 30 DMA -1.24%

Breadth weakened as decliners led advancers 4.15 to 1 on the NYSE and 3.31 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         586              607  

Decliners        2,435           2,011

Index         Change    Close    Direction    Confirmation

VIX                 +1.83     19.35       Up               Yes – SPX

SOX                -5.48   403.08      Down           Yes – COMPQ

Leading stocks > +2% on Monday included FAZ

Losing stocks < -2.0% included UAL, TSL, ENTR, JDSU, SNDK, CY, FFIV, RVBD, WDC, CREE, IL, FAS, INFA, ESI, URE, CRUS, LDK

Interest rates TNX closed +0.40, bond ETF TLT fell $1.05 and Financials XLF was down 11 cents.  The Euro moved up 19 pips to close at 1.4375 at 5 pm on Monday.

SPX

Resistance: 1,344, 1,359, 1,370

Support: 1,330, 1,321, 1310

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 +5.20 – white candle breakout, new high close, above 30 DMA

AMZN -3.03 – black candle, above 30 DMA

BIDU +2.54 – white candle breakout, above 30 DMA

GOOG +0.75 – white candle continuation, above 30 DMA

NFLX +4.95 – spinning top, above 30 DMA

PCLN -0.62 – potential shooting star, above 30 DMA

QCOM -0.65 –potential shooting star, above 30 DMA

NDX 100 stocks stronger than the NDX include CTRP, NFLX, BIDU, ATVI, INTU, MSFT, SPLS, AAPL, CHRW and EBAY.

Stocks weaker than the NDX include RIMM, FLEX, SNDK, FFIV, VRTX, ILMN, FSLR, BMC, NTAP and MU.

Stocks to Watch on Tuesday

Holding Above 30 DMA

TIF, CROX, GMCR, TPX, AGU, CMG, HLF, VMW, ATW, NGLS, CLF, ESI, ACN, CSTR, ICE, POT, AKS, CAM, CAT, COH, CRUS, DECK, DLR, FCX, LVS, NKE, NTES, PCX, SLB, SWN, URE, V, SINA, SOHU, WTW, ANF, CDE, SLW, CF, IAG, ANR, ATI, MOS, DLR, WLT, CHL, CY, MCP, UCO, MHS, DOW, FAS, GS, STI, UNP, X, ZION, CIEN, CRM, LDK, SMH, SNDK, SWKS, WDC

Moving Above 30 DMA = 2

DE, TBT

Moving Below 30 DMA = 6

CREE, JNPR, KKD, NDAQ, NETL, TLT

Staying Below 30 DMA

DHR, FFIV, SWK, UNG, ARUN, FAZ, RVBD, HUM, ENTR, INFA, A, F, GES, HAS, BAC, TSL, UAL, VECO, NVDA, FWLT, JDSU, GLW, IL

Intermediate Term Market Trend: Neutral

Short Term Market Trend: Up

Futures Point to a Lower Open Following Lower Asian and European Markets...

2:50 pm ET - Be aware of stocks that may be reporting after the close or before the open tomorrow...

Reporting earnings after the close Monday: BIDU, NFLX, BRCM, TXN

Reporting BMO Tuesday morning: AKS, BIIB, F, LMT, PCAR, RF, SIAL, UA, X

Reporting after the close Tuesday:  AMLN, AMZN, CHRW, FISV, GILD, ILMN, JNPR, LLTC, LVS, PNRA, TPX, USNA

SPX Thursday S1 and S2 are holding as stocks bounce after the open...


BMO – ES -12.00 and NQ -17.75 futures are lower about 20 minutes before the open in pre-market trading and point to a lower open on Monday…volume is light for pre-market with more stocks quoting down than up…Financial stocks, XLF down 17 cents on 18,900 volume in pre-market…

TLT is down $1.19 and the Euro is down 26 pips in premarket trading…TBT is up 77 cents...

NDX leaders AAPL, AMZN, BIDU, GOOG, PCLN and QCOM are quoting lower while NFLX is higher in pre-market trading…NFLX reports earnings after the close today…

Dave’s Insight for Monday:  S&P futures are negative following lower Asian and European markets…the sell off is being attributed to concerns over whether the U.S. government will raise the debt ceiling in time to avoid a default on Aug. 2…Watch Thursday’s S2 key short term support, as S1 is likely to be penetrated on the open…Earnings are continuing this week…Follow your rules for entries and exits…Trade each chart according to your rules…Watch XLF as a key factor for the SPX to reverse its pull back…

SPX

Resistance: 1,344, 1,359, 1,370

Support: 1,330, 1,321, 1310

Quoting Down – ISRG, PCLN, GOOG, CERN, AAPL, WYNN, WLT, CMG, GMCR, VMW, ESI, URE, SINA, CRM, SLB, WTW, TLT, HLF, FFIV, CLF, UCO, GS, DE, MOS, CAT, MHS, POT, SOHU, NETL, DECK, ARUN, ATI, CAM, FAS, TPX, UNP, ACN, V, HUM, CSTR, ANF, X, PCX, FCX, RVBD, SNDK, CY, AGU, ANR,DHR, CREE, A LVS, JNPR, SWKS, ENTR, NDAQ, INFA, CRUS, ZAGG, CTSH, JOYG, AMZN, FSLR, FFIV, ADSK, QCOM, VIDU, GRMN, CTXS, APOL, CHRW, VRSN, RIMM, AKAM, LIFE

Quoting Up – NFLX, FAZ, TBT, SLW, CDE, TIF, SIAL, SRCL, INFY

Video to Watch...

A trader at a recent Advanced Technicals workshop made me aware of this Video link.  It is the first public presentation of I'm A Great Trader that I gave in March of 2006.

Click here:  http://www.youtube.com/watch?v=7TdEVBIrKRs

Video on High Confidence Level and Put the Odds in Your Favor...
Click here: http://www.youtube.com/watch?v=FAEilMLE8A8&feature=grec_index

Enjoy!

Financials, SPX Pause as SWKS, SNDK and SLB Rise...

The NDX +1.05% closed above horizontal resistance primarily on the strength of AAPL, MSFT, GOOG, INTC, AMZN, BIDU and ESRX and made its highest close since February 2001.  SNDK +9.62% did gap higher after earnings and did seem to give a lift to semiconductor stocks.  However, its modest weighting in the NDX added less than a point to 25 point rise.

The NDX is the only one of the five broad indexes that we cover that has broke above horizontal resistance, The COMPQ, SPX, INDU and RUT are still in their trading range below horizontal resistance and not yet confirming the NDX breakout.

The Euro, interest rates and financial stocks pulled back as the SPX stayed above Thursday’s S1 level to close up +1.22 at 1,345.02. 

(click image to enlarge)

NDX large white candle breakout, above 30 DMA +1.05%

SPX potential hanging man, above S1, above 30 DMA +0.09%

INDU potential bearish harami, above S1, above 30 DMA -0.34%

COMPQ large white candle, above 30 DMA +0.86%

RUT white candle, above 30 DMA +1.07%

Breadth weakened as decliners led advancers 1.09 to 1 on the NYSE and 1.02 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      1,403           1,274  

Decliners        1,543           1,306

Index         Change    Close    Direction    Confirmation

VIX                 -0.04     17.56      Down          Yes – SPX

SOX              +9.68    408.56      Up               Yes – COMPQ

Leading stocks > +2% on Friday included SWKS, LDK, SNDK, WDC, INFA, CY, ENTR, WLT, ARUN, ESI, CROX, CIEN, JDSU, TSL, MHS, CREE, MOS, SLB, JNPR, SLW, CDE, NTES, RVBD, HAS, MCP, SOHU, FFIV, CRM, SINA, CMG, IAG, NETL, CAM, NVDA

Losing stocks < -2.0% included CSTR, CAT

Gaps and Move on Friday:

(click image to enlarge)

Positives – NDX, COMPQ, SOX, TLT, AAPL, AMZN, BIDU, GOOG

Negatives – INDU, Euro, TNX

Just three of nine sectors moved higher on Friday.  Technology XLK +0.87% and Energy XLE +0.50% were the strongest sectors. 

Interest rates TNX closed -0.46, bond ETF TLT rose 72 cents and Financials XLF was down 4 cents.  The Euro moved down 65 pips to close at 1.4356 at 5 pm on Friday.

SPX

Resistance: 1,344, 1,359, 1,370

Support: 1,330, 1,321, 1310

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 +6.01 – white candle bounce, new high close, above 30 DMA

AMZN +3.31 – white candle bounce, above 30 DMA

BIDU +3.83 – white candle bounce, above 30 DMA

GOOG +11.24 – white candle continuation, above 30 DMA

NFLX +0.77 – white candle bounce, bull flag setup, above 30 DMA

PCLN +4.36 – gap bullish engulfing, above 30 DMA

QCOM +0.52 –white candle, above 30 DMA

NDX 100 stocks stronger than the NDX include SNDK, FLEX, MU, ALXN, ESRX, AKAM, STX, YHOO, NTAP and KLAC.

Stocks weaker than the NDX include ISRG, SIAL, FSLR, FAST, QGEN, WCRX, CELG, AMGN, JOYG and SRCL.

Stocks to Watch on Monday

Holding Above 30 DMA

TIF, KKD, CROX, GMCR, TPX, AGU, CMG, HLF, VMW, ATW, NGLS, CLF, ESI, ACN, CSTR, ICE, POT, AKS, CAM, CAT, COH, CRUS, DECK, DLR, FCX, LVS, NKE, NTES, PCX, SLB, SWN, URE, V, SINA, SOHU, WTW, ANF, CDE, SLW, CF, IAG, ANR, ATI, MOS, DLR, WLT, CHL, CY, MCP, UCO, MHS, DOW, FAS, GS, STI, UNP, X, ZION

Moving Above 30 DMA = 12

CIEN, CREE, CRM, JNPR, LDK, NDAQ, NETL, SMH, SNDK, SWKS, TLT, WDC

Moving Below 30 DMA = 2

DE, TBT

Staying Below 30 DMA

DHR, FFIV, SWK, UNG, ARUN, FAZ, RVBD, HUM, ENTR, INFA, A, F, GES, HAS, BAC, TSL, UAL, VECO, NVDA, FWLT, JDSU, GLW, IL

Intermediate Term Market Trend: Neutral

Short Term Market Trend: Up