SPX Pullback Finds Support at 1,180...Closes at 1,192...

Dave will teach this week: 
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 S&P futures traded lower overnight after Germany reported a barely positive +0.1% GDP.  After opening lower the futures, the SPX and SPY filled the opening gap and traded near Monday’s high around noon.  The SPX then sold off touching its low before rally in the last hour.   

The pull back we alerted you to be prepared for last night did occur.  Buyers appeared at 1,180 before reaching last week’s breakout level at 1,170. 

The SPX closed down -11.73 at 1,192.76.  NDX leaders BIDU, PCLN, GOOG and NFLX were four of the ten weakest NDX stocks on Tuesday.

The VIX rose +0.98 closing at 32.85.  Interest rates moved lower again leading financial stocks down once again.

(click image to enlarge)

NDX potential bearish harami, below 30 DMA -0.90%

SPX potential bearish harami, below 30 DMA -0.97%

INDU potential bearish harami, below 30 DMA -0.67%

COMPQ doji potential bearish harami, below 30 DMA -1.24%

RUT potential bearish harami, below 30 DMA -1.93%

Breadth weakened as decliners led advancers 2.98 to 1 on the NYSE and 3.48 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         766              573

Decliners        2,288           1,998

Index         Change    Close    Direction    Confirmation

VIX               +0.98       32.85       Up               Yes – SPX

SOX              -7.24     355.41       Up              Yes – COMPQ

Leading stocks > +2% on Tuesday FAZ, UAL, ESI

Losing stocks < -2.0% included SINA, SWKS, SOHU, ANR, X, CROX, VECO, DECK, PCX, BAC, FAS, COH, ICE, AUN, ENTR, C, CRUS, AKS, NETL, MCP, CAM, INFA, CIEN, TIF, RVBD, JDSU, CDE, IL, TBT, ZAGG, CRM, SNDK, WLT, SWN, SWK, FFIV, NVDA, HLF, ZION, NDAQ, SLW, CY, GLW, DOW, ATW, VMW, UNP, CREE, ATI, A, LDK, CLF, NKE, CAT, UCO, IAG, UNG, TPX, TSL, NTES

Eight of nine sectors moved lower on Tuesday.  Consumer Staples XLP +0.23%, Healthcare XLV -0.09% and Utilities -0.12% were the strongest sectors.  Financials XLF -1.97% was the weakest sector.

Interest rates TNX closed down -0.71 at 22.14, bond ETF TLT rose $1.73 and Financials XLF was down 26 cents.  The Euro moved down 36 pips to close at 1.4407 at 5 pm on Tuesday.

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 -2.93 – potential bearish harami, above 30 DMA

AMZN -5.27 – black candle, below 30 DMA

BIDU -7.72 – gap down black candle, below 30 DMA

GOOG -18.23 – large black candle, below 30 DMA

NFLX -7.24 – black candle confirms hanging man, below 30 DMA

PCLN -17.23 – black candle, below 30 DMA

QCOM -0.19 – spinning top, below 30 DMA

NDX 100 stocks stronger than the NDX include GILD, SPLS, APOL, DLTR, DELL, GRMN, VMED, COST, NWSA and ROST.

Stocks weaker than the NDX include URBN, BIDU, CTXS, PCLN, GOOG, SNDK, ILMN, NFLX, MU and NTAP.

Stocks to Watch on Wednesday

Holding Above 30 DMA = 13

FAZ, TLT, GMCR, CREE, SLW, CF, CHL, CROX, MCP, NTES, ZAGG, LDK, NGLS

Moving Above 30 DMA = 0

Moving Below 30 DMA = 4

CDE, DECK, LVS, SOHU

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