NDX Stocks...AAPL, AMZN, PCLN, BIDU Key Reversal Day...

So here is the rest of my commentary and it is worth the wait…

S & P futures moved lower Monday and overnight amid EU debt concerns.  SPY opened at 114.39 down from Friday’s close at 117.85.  In Tuesday’s BMO post we alerted readers to remember that gaps have a tendency to at least partially fill and raised the question whether US traders would take advantage of lower prices following selling in Asia and Europe.

The SPY low of 114.38 occurred just after the open and the SPY spent the rest of the day rising closing at 116.99, just 17 cents below its high of 117.16.  Friday’s low of 117.43 left a gap of just 44 cents.  The VIX opened at its high and closed at its low a further indication of the strong reversal of Eurasia selling.

The SPX fell -8.73 and closed at 1,165.24.    Each of the broad indexes formed white candles.

Six NDX stocks closed above their 30 DMA today including AAPL, ATVI, FAST, FLIR, SBUX and VRSN with the total above rising to 29.  In our 30 DMA Watch List, one stock moved above the 30 DMA with the total at 21 still above.

Intermediate Posture remained Bearish on Tuesday as the MF Green Line turned slightly lower. 

Advanced traders should be aware that intermediate term posture lags short term setups.  The SPY is set up for a flag bounce entry pulling back from a higher high and making a potential higher low on Tuesday.  Follow your entry rules for flag trades.

Stocks that had a key reversal and bullish engulfing pattern on Tuesday include: AAPL, AMZN, PCLN, BIDU, GMCR, NVDA, MOS, POT, CMG, WFM, VRSN, ATVI

(click image to enlarge)

Other stocks with a bullish engulfing pattern include: CF, CHL, V, HLF, LVS, SINA, KKD, ZAGG, SNDK, NETL, ENTR, EXPE, ISRG, ORLY, AMGN, CERN, GRMN, ALXN, ROST, FAST, SBUX

Stocks with a piercing line pattern include: DECK, WYNN, SOHU, TIF, ICE, CROX, TPX, ESI, RIMM, NWSA

What's the difference between a technician and a financial reporter?  A technician actually looks at and sees a chart and calls a key reversal even on a down day.  A financial reporter may look at a chart and then write, "Stocks Plummet."

(click image to enlarge)

NDX large white candle, below 30 DMA -0.01%

SPX hammer, below 30 DMA -0.74%

INDU hammer, below 30 DMA -0.90%

COMPQ large white candle, below 30 DMA -0.26%

RUT hammer like, below 30 DMA -0.36%

Breadth strengthened as decliners led advancers 2.71 to 1 on the NYSE and 1.89 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         814             886

Decliners        2,213            1681          

Index         Change    Close    Direction    Confirmation

VIX                +3.08     37.00      Up              Yes – SPX

SOX               -2.37    339.85      Down         Yes – COMPQ

Leading stocks > +2% on Tuesday FAZ, GMCR, CHL, ZAGG, CF, ESI, NVDA

Losing stocks < -2.0% included TSL, INFA, FAS, ATI, CIEN, CLF, NDAQ, BAC, LDK, WLT, GES, MCP, NTES, FWLT, C, UAL, GS, TBT, CRM, ANR, DOW, JDSU

Eight of nine sectors moved lower on Tuesday.  Healthcare XLV +0.25%, Consumer Discretionary XLY -0.31% and Consumer Staples XLP -0.40%, and were the strongest sectors.

Interest rates TNX closed -0.17 at 19.79, bond ETF TLT rose 1.17, a new high close and Financials XLF was down 22 cents.  The Euro moved down 102 pips to close at 1.3995 at 5 pm on Tuesday.

SPX

Resistance: 1,177, 1,200, 1,225

Support: 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 +5.69 – bullish engulfing, bull flag, closes above 30 DMA

AMZN +6.18 – bullish engulfing, bull flag, above 30 DMA

BIDU +2.74 – bullish engulfing, bull flag, below 30 DMA

GOOG -2.66 – large white candle, bear flag move may be over, below 30 DMA

NFLX +5.66 – bullish engulfing, below 30 DMA

PCLN +5.51 – bullish engulfing, bull flag, above 30 DMA

QCOM -0.23 – hammer like, flag, below 30 DMA

NDX 100 stocks stronger than the NDX include VRSN, ALXN, MU, AMZN, GMCR, RIMM, NFLX, WFM, VRTX and NVDA.

Stocks weaker than the NDX include BRCM, LINTA, WCRX, EXPD, NIHD, FSLR, CHRW, BMC, QGEN and TEVA.

Stocks to Watch on Wednesday

Holding Above 30 DMA = 20

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

Moving Above 30 DMA = 1

CMG

Moving Below 30 DMA = 2

DLR, UAL

Staying Below 30 DMA

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