SPX Forms Large Black Candle Following Bearish Engulfing...Posture Bearish...

The SPX fell -30.45 and closed at 1,173.97.  The SPX is broke its 1,200 horizontal support and made a lower high and lower low on the daily candle.  Our short term posture turns bearish.  Each of the broad indexes closed below their 30 DMA.

Twenty four NDX stocks closed below their 30 DMA today including AAPL, CSCO, CTRP, FAST, GILD, LLTC, MCHP, MXIM, MYL, QCOM and SBUX with the total above dropping to 26.  In our 30 DMA Watch List, nine stocks moved below the 30 DMA with the total at 22 still above.

Posture turned Bearish on Friday as the MF Green Line turned slightly lower on Friday.  Hold on further One Green Arrow trades.

NDX gap down black spinning top, below 30 DMA -2.31

SPX large black candle, below 30 DMA -2.53%

INDU large black candle, below 30 DMA -2.20%

COMPQ gap down black spinning top, below 30 DMA -2.58%

RUT large black candle, below 30 DMA -3.60%

Breadth weakened as decliners led advancers 5.86 to 1 on the NYSE and 5.75 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         442              380

Decliners        2,594            2,186          

Index         Change    Close    Direction    Confirmation

VIX                +2.10      33.92      Up              Yes – SPX

SOX               -8.39    341.46      Down          Yes – COMPQ

Leading stocks > +2% on Friday FAZ, CDE, TLT, SLW

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

All nine sectors moved lower on Friday.  Utilities XLU -1.13%, Consumer Staples XLP -1.43%, and Healthcare XLV -2.20% were the strongest sectors.

Interest rates TNX closed -1.50 at 19.96, bond ETF TLT rose 3.54, a new high close and Financials XLF was down 54 cents.  The Euro moved down 57 pips to close at 1.4202 at 5 pm on Friday.

SPX

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

Support: 1,177, 1,160, 1,146, 1,134


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 -6.98 – spinning top, flag, closes below 30 DMA

AMZN -2.54 – hammer, flag, above 30 DMA

BIDU -3.84 – hammer, flag, below 30 DMA

GOOG -7.66 – doji, bear flag move, below 30 DMA

NFLX -20.16 – gap down white candle, below 30 DMA

PCLN -1.65 – white candle, flag, above 30 DMA

QCOM -1.38 – black spinning top, flag, closes below 30 DMA

NDX 100 stocks stronger than the NDX include ALXN, ERTS, ORLY and URBN.

Stocks weaker than the NDX include NFLX, FSLR, SHLD, RIMM, STX, AKAM, FLEX, SPLS, WCRX and MYL.

Stocks to Watch on Tuesday

Holding Above 30 DMA = 21

TLT, CF, CHL, CDE, SLW, DE, GMCR, KKD, MOS, POT, V, DLR, HLF, HUM, JDSU, LVS, NTES, UAL, CSTR, SINA, CIEN

Moving Above 30 DMA = 1

FAZ

Moving Below 30 DMA = 9

CLF, CRUS, DECK, NDAQ, NGLS, NKE, SOHU, TIF, VMW

Staying Below 30 DMA

ARUN, CMG, CREE, DHR, FWLT, GLW, ICE, MCP, SWK, URE, ZAGG, CROX, NVDA, TSL, BAC, VECO, LDK, HAL, IBM, LNKD, SNDK, SWKS, TPX, ESI, ANF, COH, FCX, GS, SLB, WLT, SWN, DOW, UCO, UNP, ANR, ATI, CAT, CRM, FAS, JNPR, SMH, STI, WDC, AKS, C, PCX, TBT, X, ZION, NETL, FFIV, RVBD, ENTR, INFA, A, F, GES, IL

Intermediate Term Market Trend: Down

Short Term Market Trend: Down