SPX Moves Towards Support on Final Day of Q3...

All nine sectors moved lower on Friday with XLP -1.03%, XLU -1.12% and XLV -1.28%. 

You’ve likely already read that Q3 was the worst quarter for the broad indices since 2008.  Since the current lows were made on August 9, this is not really news at all. 

The eight week trend is sideways with the short term three day trend is down with price falling to support.  While Thursday’s strength appeared that Friday might give a support bounce, it did not.  We now wait for a move above Friday’s high for the next support bounce.

Traders that entered bearish trades on Wednesday with a break below the low of the high day should stay with those trades until the target is reached or the stop is hit.  Move stops to protect profits.

The broad indices all moved lower with the RUT -2.81%, NDX -2.65%, COMPQ -2.63%, SPX -2.50% and INDU -2.16%.  The SPX moved down -28.98 and closed at 1,131.42.  The VIX moved up 4.12 and closed at 42.96.

(click image to enlarge)

The SP futures sold down overnight and the SPY opened Friday down -1.60 at 114.45.  The SPY filled 1.00 of the -1.60 gap by mid-morning and then turned lower.  Just 15 minutes before the close the SPY was down just 20 cents.  In the last 15 minutes the SPY dropped -1.10 to close at 113.15.

The Euro moved down 209 pips to close at 1.3386 at 5 pm on Friday.  Interest rates TNX closed down -0.33 at 19.24, bond ETF TLT rose 2.96 and Financials XLF closed down 43 cents.  While most technical factors were negative on Friday, the potential higher low on the TNX and XLF as the SPX nears support is a potential positive.

SPY volume decreased to 288.4 million shares.

By Friday’s close the big NDX leaders like AAPL, AMZN, BIDU, GMCR, GOOG, QCOM and WYNN moved -2% to -8% lower.  Ninety four NDX stocks moved lower.

Breadth weakened as decliners led advancers 4.04 to 1 on the NYSE and 3.39 to 1 on the NASDAQ.

Exchange       NYSE        NASDAQ

Advancers         607              586

Decliners        2,456           1,992          

Leading stocks > +2% on Friday FAZ, TLT

Losing stocks < -2.0% included CF, VECO, MOS, FAS, UCO, PCX, CROX, LVS, ENTR, CSTR, CRUS, ZION, JNPR, FWLT, IL, TIF, JDSU, SWKS, CLF, CREE, UAL, ANR, DOW, HAL, GS, KKD, URE, DE, TSL, FFIV, SWK, TBT, POT, SOHU, C, ATI, X, CIEN, NVDA, CRM, AKS, UNP, ANF, STI, HLF, COH, ESI, AK, NDAQ, WDC, DHR, SWN, BAC, ARUN, GMCR, MCP, RCL, F, CMG, VMW, ICE, SMH, HUM, RVBD, DECK, FCX, NKE, SLB,LDK, TPX, IBM, GLW, INFA, SLW, V, SINA, GES, CAT, NTES

NDX 100 stocks stronger than the NDX included SIRI, TEVA, ROST, SHLD, CHRW and NFLX.

Stocks weaker than the NDX include MU, NIHD, WYNN, PCLN, JOYG, AKAM, PCAR, ADSK, EXPE and FFIV.

Twenty eight NDX stocks including AAPL, ADBE, BRCM, CMCSA, CSCO, CTXS, DELL, DTV, EBAY, ISRG, LLTC, MXIM, ORLY and WFM moved below their 30 DMA making 22 NDX stocks above the 30 DMA. 

Stocks to Watch on Monday

Holding Above 30 DMA = 8

TLT, DECK, ICE, SNDK, UAL, IBM, ARUN, INFA

Moving Above 30 DMA = 1

FAZ

Moving Below 30 DMA = 11

ANF, CMG, CRUS, ENTR, HLF, HUM, NDAQ, NKE, SMH, STI, V,

Staying Below 30 DMA

COH, GMCR, TIF, CHL, CRM, CROX, CSTR, DHR, FFIV, IL, NVDA, SWKS, TPX,  VMW, JDSU, LVS, NGLS, SLW, SWN, A, CIEN, CREE, DE, RCL, URE, ATI, CF, DOW, GES, KKD, LNKD, MOS, RVBD, SINA, UNP, WDC, CDE, CLF, DLR, F, FAS, MCP, POT, UCO, WLT, ZION, AKS, CAT, FWLT, PCX, JNPR, NTES, SOHU, ZAGG, GLW, SWK, TSL, BAC, VECO, LDK, HAL, ESI, FCX, GS, SLB, ANR, C, TBT, X

Eight Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down

Futures Point to a Lower Open...Light Volume Pre-market Trading...

BMO – ES -16.00 and NQ -26.00 futures are lower about 20 minutes before the open in pre-market trading and point to a  lower open with the SPX near the 1,146 support area…volume is light for pre-market with more stocks quoting down than up…Financial stocks, XLF is down 19 cents on 43,800 shares in pre-market at this time…

TLT is up 1.88 and the Euro is down 118 pips in overnight trading …

NDX leaders AAPL, AMZN, BIDU, GOOG, NFLX, PCLN and QCOM are quoting lower…

Dave’s Insight for Friday:  Lower Euro…stronger dollar…stronger bonds (lower interest rates)…Financials lower on light volume…resulting in a lower open…Watch for at least a partial fill of this low volume gap down (typically occur during the first hour of trading) in the middle of the eight week price channel… Wait for your entry signals before taking new trades…Watch XLF, volume and breadth as key factors in any SPX move up or down…move stops on profitable trades…

SPX

Resistance: 1,160, 1,177, 1,200

Support: 1,146, 1,134, 1,117

Quoting Down – CF, PCLN, BIDU, GOOG, AMZN, WYNN, NFLX, AAPL, GMCR, CTRP, JOYG, WFM, FSLR, CLEG, SBUX, CMG, SINA, CRM, IBM, GMCR, CAT, VMW, UCO, SOHU, CLF, LNKD,GS, SLB, DE, POT, MCP, DECK, LVS, WLT, V, MOS, SNDK, HLF, HAL, RVBD, COH, FCX, TBT, RCL, SLW, TIF, ZAGG, X, ANF, FAS, C, NKE, CROX, DLR, WDC, ANR, SWKD, PCX

Quoting Up – FAZ, TLT, ISRG, ERTS, DTV, CHL, CSTR, NDAQ

Financials, RUT, INDU and SPX Lead Stocks Higher as NDX Stumbles...

Seven of nine sectors moved higher on Thursday led by XLF +2.81%, XLU and XLI.  

The RUT +1.66%, INDU +1.30% and SPX +0.81% led as the COMPQ -0.43% and NDX -1.04% moved lower.  The SPX moved up +9.34 and closed at 1,160.43.  The VIX moved down -2.24 and closed at 38.84.

Thursday’s rally reversed most of Wednesday’s selloff on the SPY creating a pull back for part of three days similar to August 25 – 26 and September 8 – 12.  If a bounce occurs a potential entry signal could occur on Friday.

The Euro moved up 57 pips to close at 1.3595at 5 pm on Thursday.  Interest rates TNX closed down -0.45 at 19.57, bond ETF TLT rose 81 cents and Financials XLF closed up 33 cents.

 SPY volume increased to 298 million shares.

Thursday’s volatile and diverse rotation of price action made for a unique trading day as money was flowing out of some big NDX leaders like AAPL, PCLN, GOOG, ISRG, AMZN, WYNN, NFLX, BIDU and GMCR and flowing into Dow stocks TRV, BAC, JPM, CVX, GE, HPQ, XOM, PFE, MRK, PG and KO.

Breadth strengthened as advancers led decliners 2.53 to 1 on the NYSE and 1.65 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      2,164           1,580

Decliners           855               957          

Leading stocks > +2% on Thursday ENTR, FAS, UCO, C, STI, GS, BAC, CIEN, LNKD, URE, FWLT, AKS, A, X, CRUS, UNP, ZION, DLR

Losing stocks < -2.0% included SINA, FAZ, GMCR, TIF, COH, LVS, TPX, MOS, SHOU, WLT, SWKS, ANF, DECK, MCP, ESI, HLF, FCX, CROX, CF, SNDK, CLF, NVDA, JNPR, NTES, CSTR

NDX 100 stocks stronger than the NDX include LIFE, QGEN, SHLD, ADSK, EXPD, FLIR, INFY, PCAR, VOD and TEVA.

Stocks weaker than the NDX include NFLX, SIRI, BIDU, WYNN, GMCR, YHOO, EXPE, WFM, PCLN and MU.

Seven NDX stocks including BMC, BRCM, SHLD and VOD moved above and five stocks moved below their 30 DMA making 50 NDX stocks above the 30 DMA. 

Stocks to Watch on Friday

Holding Above 30 DMA = 17

TLT, V, DECK, ICE, SNDK, CMG, CRUS, HUM, NDAQ, UAL, IBM, ARUN, INFA, NKE, SMH, ANF, HLF

Moving Above 30 DMA = 2

ENTR, STI

Moving Below 30 DMA = 4

COH, FAZ, GMCR, TIF

Staying Below 30 DMA

CHL, CRM, CROX, CSTR, DHR, FFIV, IL, NVDA, SWKS, TPX,  VMW, JDSU, LVS, NGLS, SLW, SWN, A, CIEN, CREE, DE, RCL, URE, ATI, CF, DOW, GES, KKD, LNKD, MOS, RVBD, SINA, UNP, WDC, CDE, CLF, DLR, F, FAS, MCP, POT, UCO, WLT, ZION, AKS, CAT, FWLT, PCX, JNPR, NTES, SOHU, ZAGG, GLW, SWK, TSL, BAC, VECO, LDK, HAL, ESI, FCX, GS, SLB, ANR, C, TBT, X

Six Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Neutral

SPX Confirms Shooting Star, Moves Below the Low of the High Day...

Dave taught an AT Workshop in Seattle to 297 traders on Tuesday and Wednesday and will be traveling home Thursday morning.  He will post again Thursday evening.



The SPX moved below the low of the high day on Tuesday and closed down -24.32 at 1,151.06. The VIX moved up +3.37 and closed at 41.08.

SPY volume decreased to 286.5 million shares.

The SPX pullback gave a potential short term exit signal below the low of the high day, on Tuesday as did all the broad indexes.

Twelve NDX stocks including AKAM, BRCM, EXPE, FFIV, GOOG, NVDA, SHLD, STX and VRTX moved below their 30 DMA making 48 NDX stocks above the 30 DMA.  In our 30 DMA Watch List, twelve stocks moved below the 30 DMA making 21 stocks above their 30 DMA.

NDX large black candle, above 30 DMA -1.45%
SPX bearish engulfing confirms shooting star, below 30 DMA -2.07%
INDU bearish engulfing, below 30 DMA -1.61%
COMPQ bearish engulfing, close below 30 DMA -2.17%
RUT bearish engulfing, below 30 DMA -4.15%

Breadth weakenedened as decliners led advancers 4.83 to 1 on the NYSE and weakened slightly 5.27 to 1 on the NASDAQ …

Exchange       NYSE     NASDAQ
Advancers        522           401
Decliners       2,523        2,116

Leading stocks > +2% on Wednesday FAZ

Losing stocks < -2.0% included SOHU, ANR, PCX, VECO, TSL, JDSU, CLF, AKS, FAS, WLT, CIEN, FCX, ENTR, SLW, SINA, UCO, MCP, CDE, IL, CF, DOW, LDK, CREE, POT, X, HAL, A, ATI, ZION, CROX, JNPR, FWLT, MOS, KKD, BAC, URE, SLB, SWN, GES, NDAQ, RVBD, LNKD, RCL, C, CRUS, WDC, NTES, TPX, HUM, STI, SWKS, ESI, SNDK, CAT, SWK, DHR, GS, CRM, NVDA, CHL, UNP, ARUN, SMH, FFIV, VMW, DLR, DE, INFA, COH, NKE, LVS, GLW, ICE, CSTR, V, NGLS

All nine sectors moved lower on Wednesday. Technology XLK -0.16%, Utilities XLU -1.01%, Consumer Discretionary XLY -1.71% and were the strongest sectors.

SPX
Resistance: 1,160, 1,177, 1,200
Support: 1,146, 1,134, 1,117

The short term 3 day trend is neutral.
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.

NDX 100 stocks stronger than the NDX include AMZN, DLTR, PAYX, VMED, ORLY, FLEX, TEVA, SPLS and DTV.

Stocks weaker than the NDX include FSLR, CTRP, MU, BIDU, JOYG, WCRX, ALTR, MYL, VRTX and ERTS.

Stocks to Watch on Thursday
Holding Above 30 DMA = 21
TLT, GMCR, V, DECK, ICE, SNDK, CMG, COH, CRUS, HUM, NDAQ, UAL, IBM, FAZ, ARUN, INFA, NKE, SMH, TIF, ANF, HLF
Moving Above 30 DMA = 0


Moving Below 30 DMA = 12
CHL, CRM, CROX, CSTR, DHR, ENTR, FFIV, IL, NVDA, STI, SWKS, TPX
Staying Below 30 DMA
VMW, JDSU, LVS, NGLS, SLW, SWN, A, CIEN, CREE, DE, RCL, URE, ATI, CF, DOW, GES, KKD, LNKD, MOS, RVBD, SINA, UNP, WDC, CDE, CLF, DLR, F, FAS, MCP, POT, UCO, WLT, ZION, AKS, CAT, FWLT, PCX, JNPR, NTES, SOHU, ZAGG, GLW, SWK, TSL, BAC, VECO, LDK, HAL, ESI, FCX, GS, SLB, ANR, C, TBT, X

Seven Week Intermediate Term Market Trend: Neutral
Short Term Market Trend: Neutral

Futures Point to a Higher Open...

BMO – ES +3.25 and NQ +5.25 futures are higher about 20 minutes before the open in pre-market trading and point to a  higher open…volume is light for pre-market with more stocks quoting up than down…Financial stocks, XLF is up 4 cents on 105,900 shares in pre-market at this time…

TLT is down 7 cents and the Euro is up 34 pips in overnight trading …


NDX leaders AAPL, AMZN, GOOG, PCLN and NFLX are quoting higher…BIDU is lower…QCOM is unchanged…

Look for a potential entry signal on Wednesday: AAPL, CELG, GMCR, FAST, LINTA, MXIM, VRTX, SBUX, ADSK, MCHP, NVDA, PCLN, CMG, CF, ICE, COH, CRUS

Dave’s Insight for Wednesday: Stocks continuing support bounce… look for those stocks in a bull flag…other stocks are in a counter trend move…as always take entry signals according to your rules…remember to trade for your target and move stops to protect profits according to your rules…Watch XLF, volume and breadth as a key factors in any SPX move up or down…move stops on profitable trades…

SPX
Resistance: 1,160, 1,177, 1,200
Support: 1,146, 1,134, 1,117

Quoting Down – CHL, FAZ, SINA, ICE, HLF, SOHU, CDE, NDAQ, COST, INFY, BIDU, VRTX, FSLR

Quoting Up – AAPL, AMZN, GOOG, NFLX, PCLN, IBM, GMCR, CF, DHR, NKE, DECK, ZAGG, CAT, GS, CMG, ATI, V, ANR, WDC, VMW, CREE, X, LVS, ORLY, SRCL, CTRP, JOYG, LIFE, TEVA, SBUX, EBAY, WYNN, QGEN, PAYX, VOD, ADP, ESRX, INTU, CHRW, LLTC, NTAP, RIMM

SPX Closes Higher as Breadth Strengthens and VIX Pull Back...

After rising to 1,195 the SPX closed up +12.43 at 1,175.38. The VIX moved down -1.31 and closed at 37.71.

SPY volume increased to 311.5 million shares.

Twelve NDX stocks including AKAM, CTXS, EXPE, FFIV, INFY, SHLD and VMED moved above their 30 DMA making 68 NDX stocks above the 30 DMA. In our 30 DMA Watch List, eight more stocks moved above the 30 DMA making 33 stocks above their 30 DMA.



NDX spinning top, above 30 DMA +0.86%
SPX potential shooting star at 30 DMA, below 30 DMA +1.07%
INDU white candle at 30 DMA, below 30 DMA +1.33%
COMPQ spinning top, above 30 DMA +1.35%
RUT potential shooting star at 30 DMA, below 30 DMA +2.19%

Breadth strengthened as advancers led decliners 4.54 to 1 on the NYSE and  2.98 to 1 on the NASDAQ …

Exchange      NYSE      NASDAQ
Advancers     2,510        1,966
Decliners          552            659

Leading stocks > +2% on Tuesday MCP, ATI, CIEN, SINA, UCO, NTES, RCL, DOW, JNPR, A, VECO, AKS, GLW, IL, FCX, CRUS, TBT, CRM, SWK, INFA, MOS, X, COH, LNKD, POT, UNP, LVS, WLT, HAL, NGLS, SMH, SLW, STI, KKD

Losing stocks < -2.0% included UAL, TSL, ZAGG, RVBD, CMG, LDK, CROX

All nine sectors moved higher on Tuesday. Materials XLB +2.08%, Industrials XLI +1.76% and Healthcare XLV +1.53% and were the strongest sectors.

Interest rates TNX closed up +1.12 at 20.16, bond ETF TLT moved down -1.82 and Financials XLF closed up 6 cents.  The Euro moved up 48 pips to close at 1.3583 at 5 pm on Tuesday.

SPX

Resistance: 1,160, 1,177, 1,200
Support: 1,146, 1,134, 1,117

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.

NDX 100 stocks stronger than the NDX include SHLD, JOYG, INFY, AKAM, RIMM, CTXS, BIDU, ADSK, CTRP and AMAT.

Stocks weaker than the NDX include NFLX, AMZN, VRTX, DLTR, MU, URBN, YHOO, ORLY, AAPL and WFM.

Stocks to Watch on Wednesday
Holding Above 30 DMA = 25
TLT, GMCR, V, DECK, ICE, SNDK, CMG, COH, CRUS, HUM, NDAQ, UAL, IBM, FAZ, ARUN, CROX, INFA, NKE, NVDA, SMH, TIF, ANF, ENTR, HLF, TPX
Moving Above 30 DMA = 8
CHL, CRM, CSTR, DHR, FFIV, IL, STI, SWKS
Moving Below 30 DMA = 1
VMW
Staying Below 30 DMA
JDSU, LVS, NGLS, SLW, SWN, A, CIEN, CREE, DE, RCL, URE, ATI, CF, DOW, GES, KKD, LNKD, MOS, RVBD, SINA, UNP, WDC, CDE, CLF, DLR, F, FAS, MCP, POT, UCO, WLT, ZION, AKS, CAT, FWLT, PCX, JNPR, NTES, SOHU, ZAGG, GLW, SWK, TSL, BAC, VECO, LDK, HAL, ESI, FCX, GS, SLB, ANR, C, TBT, X

Six Week Intermediate Term Market Trend: Neutral
Short Term Market Trend: Up

Futures Point to a Higher Open...

BMO – ES +19.00 and NQ +34.75 futures are higher about 30 minutes before the open in pre-market trading and point to a higher open…volume is moderate for pre-market with a many more stocks quoting up than down…Financial stocks, XLF is up 21 cents on 263,100 shares in pre-market at this time…

TLT is down -1.88 and the Euro is up 59 pips breaking above the high of the low day which was Monday …

NDX leaders AAPL, AMZN, BIDU, GOOG, PCLN, NFLX and QCOM are quoting higher…

Take some bull flag entries according to your rules above the high of the inside day in your paper trade account… Many of the stocks, ORLY, AMGN, CERN, DLTR, COST, ALXN, BBBY, AMZN, ISRG, ROST, WFM, ATVI, FLIR, YHOO, MRVL, SNDK, MU, INTC, KLAC, BIIB, ORCL, EBAY, ADBE, CMCSA, CTSH and LLTC, in our bull flag setup list gave entry signals on Monday or Friday.

Look at the remaining stocks for a potential entry signal on Tuesday: AAPL, CELG, GMCR, FAST, LINTA, MXIM, VRTX, SBUX, ADSK, MCHP, NVDA, PCLN, CMG, CF, ICE, COH, CRUS


Dave’s Insight for Tuesday: Stocks continuing support bounce…many stocks that did not break the high of the inside day on Monday…look to do so today…for those stocks in a bull flag, this is an entry signal…other stocks are in a counter trend move…as always take entry signals according to your rules…remember to trade for your target and move stops to protect profits according to your rules…Watch XLF, volume and breadth as a key factors in any SPX move up or down…remember pre-market gaps can at least partially fill during the first hour, so follow your rules...


SPX
Resistance: 1,160, 1,177, 1,200
Support: 1,146, 1,134, 1,117

Quoting Down – FAZ, TLT, ICE, GES, INFA, DHR, NDAQ, ATI, DLR, HUM, NKE, LRCX, GRMN, GILD, CTRP, CERN

Quoting Up – AAPL, AMZN, BIDU, GOOG, NFLX, PCLN, QCOM, CMG, CRM, DECK, SINA, LNKD, CAT, MCP, FFIV, GMCR, MOS, DE, CLF, CF, ANF, IBM, WLT, VMW, GS, NTES, SLW, SOHU, TIF, POT, SLB, FCX, URE, LVS, SWK, V, CRE, HAL, UCO, OCH, RCL, SWN, ANR, C, X, CDE, FAS, TBT, SNDK, PCX, CROX, FWLT, ARUN, DOW, SWKS, NVDA, WDC, CIEN, HLF, JNPR, UAL, ZION, TSL, RVBD, WYNN, ISRG, FSLR, JOYG, CELG, MCHP, ALXN, QCOM, CTXS, DLTR, COST, BBY, WFM, EXPE, ORCL, SBUX, EBAY, NTAP, ALTR, FLIR, NWSA, LLTC, BRCM, AKAM, VOD, KLAC

SPX Closes Above the High of the Inside Day...Take Advantage or Disbelieve?

After a volatile futures ride Sunday night and Monday morning, the SPX formed and intra-day double bottom around 10:30 am EDT closed up +26.52 at 1,162.52. The VIX moved down -2.23 and closed at 39.02.

SPY volume decreased to 260.4 million shares.

The SPX did bounce, and gave a potential entry signal above the high of the inside day, on Monday as did all the broad indexes.

Many of the stocks, ORLY, AMGN, CERN, DLTR, COST, ALXN, BBBY, AMZN, ISRG, ROST, WFM, ATVI, FLIR, YHOO, MRVL, SNDK, MU, INTC, KLAC, BIIB, ORCL, EBAY, ADBE, CMCSA, CTSH and LLTC, in our bull flag setup list gave entry signals on Monday or Friday. Look at the remaining stocks for a potential entry signal on Tuesday: AAPL, CELG, GMCR, FAST, LINTA, MXIM, VRTX, SBUX, ADSK, MCHP, NVDA, PCLN

Seventeen NDX stocks including CA, CSCO, DELL, DTV, ERTS, GILD, GOOG, LRCX, MAT, QCOM, STX and SYMC moved above their 30 DMA making 57 NDX stocks above the 30 DMA. In our 30 DMA Watch List, five more stocks moved above the 30 DMA making 26 stocks above their 30 DMA.

Intermediate Posture based on the MF Green Line is down as the green line lagged today’s SPX move up and moved down to 40. The Green Line is in the process of making a higher low.

Technical indicators strengthened again on Monday including more stocks moving above their 30 DMA.


NDX hammer, above 30 DMA +1.24%
SPX large white candle, below 30 DMA +2.33%
INDU large white candle, below 30 DMA +2.53%
COMPQ hammer, close above 30 DMA +1.35%
RUT white candle, below 30 DMA +2.02%

Breadth strengthened as advancers led decliners 2.73 to 1 on the NYSE and weakened slightly 1.77 to 1 on the NASDAQ …

Exchange     NYSE      NASDAQ
Advancers    2,217        1,669
Decliners        811            939

Index     Change      Close      Direction      Confirmation
VIX          -2.23           41.25         Down            Yes – SPX
SOX         -0.45         359.50         Down            No – COMPQ

Leading stocks > +2% on Monday FAS, ENTR, STI, RVBD, PCX, C, ZION, HAL, GES, SWN, ANF, HLF, CSTR, WDC, ANR, FWLT, UAL, X, BAC, CF, LNKD, FCX, DOW, GS, CAT, FFIV, CDE, CLF, ESI, AKS, ARUN, ATI, WLT, SLB, DLR, TPX, POT, TBT, IBM, VMW, CROX, CMG, URE, IL, SWK, NDAQ, UCO, A, F, KKD, HUM

Losing stocks < -2.0% included FAZ, NTES, SINA, MCP, TSL, ZAGG

All nine sectors moved higher on Monday. Financials XLF +4.45%, Energy XLE +3.65% and Materials XLB +3.21% and were the strongest sectors.

Interest rates TNX closed up +0.96 at 19.04, bond ETF TLT moved down -1.94 and Financials XLF closed up 52 cents. The Euro moved up 37 pips to close at 1.3535 at 5 pm on Monday.

SPX
Resistance: 1,160, 1,177, 1,200
Support: 1,146, 1,134, 1,117

The short term 3 day trend is neutral.
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.

NDX 100 stocks stronger than the NDX include KLAC, WFM, EXPE, CTXS, STX, SIAL, FFIV, SRCL, GRMN and LRCX.

Stocks weaker than the NDX include VRTX, SIRI, AMAT, ALTR, WYNN, NIHD, MCHP, MU, BRCM and BIDU.

Stocks to Watch on Tuesday
Holding Above 30 DMA = 21
TLT, GMCR, V, DECK, ICE, SNDK, CMG, COH, CRUS, HUM, NDAQ, UAL, IBM, FAZ, ARUN, CROX, INFA, NKE, NVDA, SMH, TIF
Moving Above 30 DMA = 5
ANF, ENTR, HLF, TPX, VMW
Moving Below 30 DMA = 1
SWKS
Staying Below 30 DMA
CHL, CRM, DHR, JDSU, LVS, NGLS, SLW, SWN, A, CIEN, CREE, CSTR, DE, FFIV, RCL, STI, URE, ATI, CF, DOW, GES, IL, KKD, LNKD, MOS, RVBD, SINA, UNP, WDC, CDE, CLF, DLR, F, FAS, MCP, POT, UCO, WLT, ZION, AKS, CAT, FWLT, PCX, JNPR, NTES, SOHU, ZAGG, GLW, SWK, TSL, BAC, VECO, LDK, HAL, ESI, FCX, GS, SLB, ANR, C, TBT, X

Seven Week Intermediate Term Market Trend: Neutral
Short Term Market Trend: Up

Futures Point to a Higher Open...Look for Bull Flags Above the High of the Inside Day...

BMO – ES +8.75 and NQ +6.50 futures are higher about 10 minutes before the open in pre-market trading and point to a  higher open…volume is moderate for pre-market with a many more stocks quoting up than down…Financial stocks, XLF is up 19 cents on 434,500 shares in pre-market at this time…

TLT is down 55 cents and the Euro is up 3 pips in overnight trading…

NDX leaders AMZN, BIDU, GOOG, PCLN, NFLX and QCOM are quoting higher…AAPL is lower…

Take some bull flag entries according to your rules above the high of the inside day in your paper trade account…Stronger up trending stocks with a bull flag setup include:  AMZN, AAPL, ORLY, AMGN, CERN, DLTR, COST, CELG, ALXN, GMCR, BBBY, ISRG, ROST, WFM, ATVI, FLIR, FAST, YHOO, LINTA, MXIM, MRVL, VRTX, SNDK, MU, INTC, KLAC, SBUX, BIIB, ORCL, ADSK, EBAY, ADBE, CMCSA, CTSH, LLTC, MCHP, NVDA, PCLN

Dave’s Insight for Monday:  Markets are bouncing off support…since the SPX is in a sideways trend and bouncing off support, this is the high probability expected move…the NDX is in an uptrend support bounce or bull flag…many stocks are breaking the high of the inside day…for those stocks in a bull flag, this is an entry signal…other stocks are in a counter trend move…as always take entry signals according to your rules…remember to trade for your target and move stops to protect profits according to your rules…Watch XLF, volume and breadth as a key factors in any SPX move up or down…remember pre-market gaps can at least partially fill during the first hour, so follow your rules.

SPX

Resistance: 1,146, 1,160, 1,177

Support: 1,134, 1,117, 1,100

Quoting Down – AAPL, FAZ, NTES, SLW, CHL, SWK, ESI, TLT, UCO, DLR, CDE, HLF, FFIV, COH, ADSK, COST, CHKP, SRCL, INTU, CHRW, CTSH, DTV, LIFE, MRVL

Quoting Up – NFLX, GOOG, AMZN, LNKD, CF, SINA, DECK, IBM, CRM, VMW, V, GMCR, SOHU, GS, ARUN, CLF, CAT, DE, SLB, MCP, V, LVS, POT, WLT, CREE, ATI, MOS, X, SNDK, ANR, NKE, FAS, C, RCL, HAL, FWLT, RVBD, CRUS, DOW, PCX, SWN, NGLS, JDSU, UAL, JNPR, STI, NVDA, PCLN, WYNN, BIDU, CERN, JOYG, FSLR, ALXN, MYL, WFM, TEVA, QCOM, ORCL, ERTS, VOD, EBAY, KLAC, EXPE, ALTR, NTAP, ADBE, MSFT

SPX, NDX Support Holds Form Inside Day...NDX Bullish Engulfing...

Buyers came in at a higher low on Friday as the Euro, interest rates TNX +0.93 and financial stocks XLF +0.12, +1.04% rose.  The SPX moved up +6.87 and closed at 1,136.43.  Each of the major indexes formed an inside day, which is a potential reversal pattern.  The VIX moved down -0.10 and closed at 41.35. 

SPY volume decreased to 307.2 million shares.

If the SPX 1,100 horizontal support holds the SPX bounces, watch for potential entry signals above the high of the inside day, on Monday.

Stronger up trending stocks with a bull flag setup include:  AAPL, ORLY, AMGN, CERN, DLTR, COST, CELG, ALXN, GMCR, BBBY, AMZN, ISRG, ROST, WFM, ATVI, FLIR, FAST, YHOO, LINTA, MXIM, MRVL, VRTX, SNDK, MU, INTC, KLAC, SBUX, BIIB, ORCL, ADSK, EBAY, ADBE, CMCSA, CTSH, LLTC, MCHP, NVDA, PCLN

Seven NDX stocks including ADBE, CTSH, LLTC, MCHP, NVDA and PCLN moved above their 30 DMA making 40 NDX stocks above the 30 DMA.  In our 30 DMA Watch List, eight more stocks moved above the 30 DMA making 22 stocks above their 30 DMA.

Intermediate Posture based on the MF Green Line is down as the green line moved down to 48.

Technical strength improved on Friday including more stocks moving above their 30 DMA.

(click image to enlarge)

NDX bullish engulfing, close above 30 DMA +1.02%

SPX white candle inside day, below 30 DMA +0.61%

INDU hammer inside day, below 30 DMA +0.35%

COMPQ bullish engulfing, below 30 DMA +1.12%

RUT bullish engulfing, below 30 DMA +1.40%

Breadth strengthened as advancers led decliners 1.72 to 1 on the NYSE and 2.13 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      1,901           1,750

Decliners        1,102              818          

Index         Change    Close    Direction    Confirmation

VIX               -0.10       41.25      Down         Yes – SPX

SOX             +7.17     359.95      Up              Yes – COMPQ

Leading stocks > +2% on Friday ARUN, SOHU, UAL, SINA, FWLT, SWK, DECK, INFA, NKE, CROX,CSTR, CLF, IL, TIF, C, VECO, NTES, COH, BAC, TBT,  PCX, TSL, FAS, VMW, ANR, SWKS, CRM, F, ESI, DOW, NVDA, SMH, V

Losing stocks < -2.0% included SLW, CDE, MOS, HAL, FAZ, SWN, ZAGG, CREE, POT, LDK

Seven of nine sectors moved higher on Friday.  Consumer Discretionary XLY +1.51% Technology XLK +1.14% and Financials XLF +1.04% were the strongest sectors.

Interest rates TNX closed up +0.93 at 18.08, bond ETF TLT moved down -2.29 and Financials XLF closed up 12 cents.  The Euro moved up 36 pips to close at 1.3498 at 5 pm on Friday.

Resistance: 1,146, 1,160, 1,177

Support: 1,134, 1,117, 1,100

The short term 3 day trend is down.

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 +2.48 – bullish engulfing inside day, above 30 DMA

AMZN +0.38 – white candle inside day, above 30 DMA               

BIDU +0.22 – white candle inside day, below 30 DMA

GOOG +4.85 – piercing line inside day, close below 30 DMA

NFLX +0.03 – inverted hammer, below 30 DMA

PCLN +9.04 – piercing line inside day, close above 30 DMA

QCOM +0.26 – bullish engulfing inside day, below 30 DMA

NDX 100 stocks stronger than the NDX include CTRP, YHOO, FSLR, MRVL, ALXN, MU, NWSA, AKAM, VRTX and DELL.

Stocks weaker than the NDX include ESRX, ILMN, MAT, GRMN, CELG, BBBY, LINTA, ADP, BIIB and TEVA.

Stocks to Watch on Monday

Holding Above 30 DMA = 14

TLT, GMCR, V, DECK, ICE, SNDK, CMG, COH, CRUS, HUM, NDAQ, UAL, IBM, FAZ

Moving Above 30 DMA = 8

ARUN, CROX, INFA, NKE, NVDA, SMH, SWKS, TIF

Moving Below 30 DMA = 0

Staying Below 30 DMA

ANF, CHL, CRM, DHR, HLF, JDSU, LVS, NGLS, SLW, SWN, TPX, A, CIEN, CREE, CSTR, DE, ENTR, FFIV, RCL, STI, URE, VMW, ATI, CF, DOW, GES, IL, KKD, LNKD, MOS, RVBD, SINA, UNP, WDC, CDE, CLF, DLR, F, FAS, MCP, POT, UCO, WLT, ZION, AKS, CAT, FWLT, PCX, JNPR, NTES, SOHU, ZAGG, GLW, SWK, TSL, BAC, VECO, LDK, HAL, ESI, FCX, GS, SLB, ANR, C, TBT, X

Seven Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Neutral

Futures Point to a Lower Open...NKE Up 3 After Earnings...

BMO – ES –6.25 and NQ -10.00 futures are lower about 11 minutes before the open in pre-market trading and point to a  lower open…volume is moderate for pre-market with a many more stocks quoting down than up…Financial stocks, XLF is down 6 cents on 643,400 shares in pre-market at this time…

TLT is down 14 cents and the Euro is up 32 pips in overnight trading…GLD is down 4.58 in pre-market...

NDX leaders AAPL, AMZN, BIDU, GOOG, PCLN, NFLX and QCOM are quoting lower…

Dave’s Insight for Friday:  If support holds it looks like we are going to have a multi-day test of support like August 18 – 22…watch to see if US traders continue to use 1,100 support area as a buying opportunity as they did on Aug 8, Aug 19, Sep 6 and 12…look for bearish or bullish entry signals according to your rules…remember to trade for your target and move stops to protect profits according to your rules…Watch XLF, volume and breadth as a key factors in any SPX move up or down…

SPX

Resistance: 1,146, 1,160, 1,177

Support: 1,134, 1,117, 1,100

Quoting Down – CMG, MOS, HLF, DECK, COH, SLW, CDE, IBM, V, CF, UCO, FFIV, CHL, CREE, GS, LNKD, VMW, HU, TIF, SWN, FCX, WDC, CROX, SWKS, ATI, POT, C, NTES, DOW, LVS, C, ISRG, GOOG, PCLN, ALXN, COST, JOYG, SHLD, NFLX, LRCX, FSLR, BBBY, ADP, BIDU, FFIV, URBN, AAPL, CERN, SBUX, EBAY, APOL, BRCM, AKAM

Quoting Up – NKE, SINA, GES, X, FAZ, URE, SMH, VOD, WCRX, WYNN, CTRP, ILMN

SPX Forms Large Black Candle..SPY Gaps Lower Closes Near Open....

Futures traded lower overnight and the SPY opened down -3.38 and traded as low as 111.30 low, bounced and closed at 112.86.  The SPX dropped -37.20 and closed at 1,129.56. The VIX moved up +4.03 and closed at 41.35. 

SPY volume increased to 513.5 million shares.

Following a falling Euro and interest rates the SPX moved to support at 1,114 before rising 15 points to close at 1,129.  If the SPX 1,100 horizontal support holds the SPX bounces, watch for potential entry signals above the high of the low day, on Friday.

Stronger up trending stocks with a bull flag setup include:  AAPL, ORLY, AMGN, CERN, DLTR, COST, CELG, ALXN, GMCR, BBBY, AMZN, ISRG, ROST, WFM, ATVI, FLIR, FAST, YHOO, LINTA, MXIM, MRVL, VRTX, SNDK, MU, ORCL, KLAC, EBAY

The Euro fell and TNX dropped -1.60 to a new low at 17.15 while XLF -0.34, -2.86% was down almost half of Tuesday’s down move and was the fourth strongest sector.

Twenty Eight NDX stocks including ADBE, CSCO, CTSH, DELL, GILD, GOOG, GRMN, MSFT, NVDA, PCLN, QCOM, and WYNN moved below their 30 DMA leaving 34 NDX stocks above the 30 DMA.  In our 30 DMA Watch List, seventeen more stocks moved below the 30 DMA leaving 14 stocks above their 30 DMA.

Intermediate Posture based on the MF Green Line turned negative today as the green line moved down to 58.

Technical indicators weakened further today including more stocks moving below their 30 DMA as the SPX found buyers at horizontal support.
 

(click image to enlarge)

NDX gap down high wave candle, close below 30 DMA -3.26%

SPX large black candle, below 30 DMA -2.94%

INDU large black candle, below 30 DMA -2.49%

COMPQ gap down high wave candle, close below 30 DMA -3.25%

RUT gap down black candle, below 30 DMA -3.18%

Breadth weakened as decliners led advancers 7.92 to 1 on the NYSE and 6.20 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         346              368

Decliners        2,742            2,282          

Index         Change    Close    Direction    Confirmation

VIX               +4.03      41.35      Up              Yes – SPX

SOX             -12.59    352.78      Down         Yes – COMPQ

Leading stocks > +2% on Thursday FAZ, TLT

Losing stocks < -2.0% included ATI, SLW, FWLT, AKS, CDE, FAS, X, ANR, UCO, CLF, PCX, SOHU, DOW, MCP, ZAGG, FCX, SINA, CREE, SWN, TBT, RCL, CRM, JDSU, SWKS, NTES, LVS, CAT, HAL, CSTR, CIEN, NVDA, TIF, POT, KKD, WDC, C, SWK, SLB, GES, LDK, GLW, VMW, DE, ANF, GMCR, TPX, MOS, RVBD, URE, BAC, HLF, ENTR, DHR, NGLS, ZION, TSL, CF, COH, GS, DECK, CRUS, STI, F, V, JNPR, WLT, FFIV, LNKD, ESI, INFA, UAL, A, SNDK, CHL, SMH, CROX, IBM, CMG

All nine sectors moved lower on Thursday.  Utilities XLU -1.69%, Consumer Staples XLP -1.90% and Healthcare XLV -2.02% were the strongest sectors.

The Euro moved down 102 pips to close at 1.3462 at 5 pm on Thursday.

SPX

Resistance: 1,146, 1,160, 1,177

Support: 1,134, 1,117, 1,100

The short term 3 day trend is down.

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 -10.32 – spinning top, above 30 DMA

AMZN -8.64 – spinning, above 30 DMA                                          

BIDU -15.15 – large black candle, below 30 DMA

GOOG -7.42 – hammer like, close below 30 DMA

NFLX +0.03 – spinning top, below 30 DMA

PCLN -25.70 – gap down large black candle, close below 30 DMA

QCOM -1.63 – doji, close below 30 DMA

NDX 100 stocks stronger than the NDX include ILMN, BBBY, YHOO, NFLX and CELG.

Stocks weaker than the NDX include BIDU, JOYG, FSLR, NIHD, CHKP, VRTX, SIRI, APOL, NVDA and EXPE.

Stocks to Watch on Friday

Holding Above 30 DMA = 14

TLT, GMCR, V, DECK, ICE, SNDK, CMG, COH, CRUS, HUM, NDAQ, UAL, IBM, FAZ

Moving Above 30 DMA = 0

Moving Below 30 DMA = 17

ANF, CHL, CRM, CROX, DHR, HLF, JDSU, LVS, NGLS, NKE, NVDA, SLW, SMH, SWKS, SWN, TIF, TPX

Staying Below 30 DMA

A, ARUN, CIEN, CREE, CSTR, DE, ENTR, FFIV, RCL, STI, URE, VMW, ATI, CF, DOW, GES, IL, KKD, LNKD, MOS, RVBD, SINA, UNP, WDC, CDE, CLF, DLR, F, FAS, MCP, POT, UCO, WLT, ZION, AKS, CAT, FWLT, PCX, JNPR, NTES, SOHU, ZAGG, GLW, SWK, TSL, BAC, VECO, LDK, HAL, ESI, FCX, GS, SLB, ANR, C, TBT, X, INFA

Six Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down