SPX Closes Above Resistance...Potential Target 1,299...

Dave will teach this week: 
AT Trading Room Monday 9:00 pm EDT
AT Trading Room Wednesday 9:30 am EDT - I will sub here
Stocks Trading Room Thursday 9:30 am EDT
AT Trading Room Thursday 7:00 pm EDT

The SPX formed a large white candle, broke through the 1,200 horizontal resistance, rose +25.68 and closed at 1,204.49.  If the breakout holds, this gives the SPX a breakout price target of 1,299.  After three days up the SPX could rest and even form a bull flag with a pull back low at last weeks horizontal breakout of 1,170.    

After observing on Friday that we would like to see the SPX close above the August 5 close of 1,199, which was also the low on Thursday August 4 that is exactly what happened on Monday.  If this breakout holds it suggests a change from the trading range between 1,100 and 1,199 to a range of 1,170 to 1,240 or 1,200 to 1,300.

The VIX fell, closing down -4.49 at 31.87.  Interest rates moved higher and financial stocks surged and closed higher.

The Green Line on the Market Forecast rose above 20 creating a bullish posture, If you trade One Green Arrow this is the go ahead to start taking entry signals again.

(click image to enlarge)

NDX white candle breakout trading range resistance, below 30 DMA +1.47%

SPX white candle breakout trading range resistance, below 30 DMA +2.18%

INDU white candle breakout trading range resistance, below 30 DMA +1.90%

COMPQ white candle breakout trading range resistance, below 30 DMA +1.88%

RUT white candle breakout trading range resistance, below 30 DMA +3.03%

Breadth strengthened as advancers led decliners 10.19 to 1 on the NYSE and 4.27 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      2,824           2,135

Decliners           277              499

Index         Change    Close    Direction    Confirmation

VIX               -4.49        31.87      Down         Yes – SPX

SOX             +7.03      362.65      Up              Yes – COMPQ

Leading stocks > +2% on Monday LDK, FAS, ENTR, GLW, BAC, JDSU, URE, CDE, CRUS, ZAGG, RVBD, STI, PCX, TSL, UCO, ANR, TPX, ZION, C, SWKS, SWN, VMW, DLR, SOHU, WLT, FWLT, WTW, NVDA, SLW, UAL, A, CAM, CY, CIEN, CROX, NTES, LVS, SINA, NDAQ, VECO, FCX, CSTR, SLB, KKD, F, SWK, MOS, X, AKS, WDC, INFA, CRM, NGLS, V, ANF, GS, IAG, ATW, DOW, FFIV, IL, TBT, DE, POT

Losing stocks < -2.0% included FAZ, ARUN

All nine sectors moved higher on Monday.  Utilities XLU +3.41%, Energy XLE +3.38% and Financials XLF +3.21% were the strongest sectors.

Interest rates TNX closed +0.48 at 22.85, bond ETF TLT fell -1.07 and Financials XLF was up 41 cents.  The Euro moved up 197 pips to close at 1.4443 at 5 pm on Monday.

SPX

Resistance: 1,200, 1,225, 1,235

Support: 1,173, 1,158, 1,146

The short term 3 day trend is up.

The six-month trend is down.

The twelve-month trend is neutral.

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 +6.42 – white candle, above 30 DMA

AMZN +0.65 – spinning top, below 30 DMA

BIDU -5.51 – bearish engulfing, close below 30 DMA

GOOG -6.54 – spinning top, below 30 DMA

NFLX +2.28 – potential hanging man/bearish harami, below 30 DMA

PCLN +2.95 – spinning top confirms hammer, below 30 DMA

QCOM +11.24 – white candle, below 30 DMA

NDX 100 stocks stronger than the NDX include RIMM, MU, QGEN, VMED, DELL, NWSA, ILMN, VRTX, NVDA and WFM.

Stocks weaker than the NDX include BIDU, GOOG, GMCR, CTSH, YHOO, GILD, URBN, CHRW, BMC and CSCO.

Stocks to Watch on Tuesday

Holding Above 30 DMA

FAZ, TLT, GMCR, CREE, SLW, CF, CHL, CROX, DECK, MCP, NTES, SOHU, ZAGG

Moving Above 30 DMA = 4

CDE, LDK, LVS, NGLS

Moving Below 30 DMA = 0

Staying Below 30 DMA

HLF, CAM, CMG, IAG, MHS, MOS, SNDK, SWKS, TPX, V, WTW, ESI, ANF, ATW, COH, FCX, GS, POT, SLB, WLT, NKE, SINA, SWN, ACN, AGU, DOW, UCO, UNP, VMW, CLF, ANR, ATI, CAT, CIEN, CRM, CRUS, CY, DLR, FAS, ICE, JNPR, 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: Down

Short Term Market Trend: Up