NDX, SPX Move Big Following Key Reversal Day...

SPY opened up +1.77, pulled back just 44 cents before rising to a strong close up +3.30 at 120.29.

  

The SPX rose +33.38 and closed at 1,198.62.    Each of the broad indexes formed white candles at or above their 30 DMA.  This bounce from a higher low of 1,140 compared with the low of 1,121 on August 22 confirms the MACD bullish divergence we alerted readers to weeks ago and suggests the 1,298 price target from the August 29 horizontal breakout is still good.

Thirty NDX stocks closed above their 30 DMA today including ADBE, ADP, BIDU, BRCM, CSCO, CTRP, GILD, JOYG, LLTC, MCHP, MRVL, MSFT, MXIM, NVDA, QCOM, XLNX and YHOO with the total above rising to 59.  In our 30 DMA Watch List, twenty two stocks moved above the 30 DMA with the total at 42 above.

Intermediate Posture based on the MF Green Line turned slightly lower.  We alerted readers last night that the short term setups took precedence and to follow their rules for these setups. 

Only CMG and CF from last night's list of reversal and bullish candle pattern stocks failed to rise,

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

Other stocks with a bullish engulfing pattern on Tuesday included: CF, CHL, V, HLF, LVS, SINA, KKD, ZAGG, SNDK, NETL and ENTR

Stocks with a piercing line pattern on Tuesday included: DECK, WYNN, SOHU, TIF, ICE, CROX, TPX and ESI

(click image to enlarge)

NDX gap large white candle, closed above 30 DMA +2.59%

SPX bullish engulfing confirms hammer, closed above 30 DMA +2.86%

INDU bullish engulfing confirms hammer, at30 DMA +2.47%

COMPQ gap large white candle, closed above 30 DMA +3.04%

RUT gap large white candle, at 30 DMA +4.20%

Breadth strengthened as advancers led decliners 8.66 to 1 on the NYSE and 5.64 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      2,738           2,207

Decliners           315               391          

Index         Change    Close    Direction    Confirmation

VIX                 -3.62     37.00      Down          Yes – SPX

SOX            +15.17    354.26      Up               Yes – COMPQ

Leading stocks > +2% on Wednesday WLT, PCX, FAS, ANR, AKS, ENTR, X, NDAQ, CLF, NVDA, LNKD, JNPR, ATI, ANF, STI, URE, BAC, SINA, CREE, IL, INFA, JDSU, UCO, NETL, ZION, SNDK, RCL, RVBD, TPX, A, FFIV, UAL, CIEN, FWLT, GES, CRUS, LVS, C, COH, SWKS, MCP, DECK, VMW, ESI, DLR, VECO, WDC, CRM, TBT, GS, ARUN, DOW, LDK, SWN, GLW, CAT, HAL, ICE, F, SLB, HUM, NKE, TIF, SMH, DHR, V, CDE, SOHU, CROX, DE, HLF, SWK, NTES

Losing stocks < -2.0% included FAZ

All nine sectors moved higher on Wednesday.  Financials XLF +4.79%, Energy XLE +3.66% and Industrials XLI +3.11% were the strongest sectors.

Interest rates TNX closed +0.57 at 20.36, bond ETF TLT fell -2.17 and Financials XLF moved up 59 cents.  The Euro moved up 102 pips to close at 1.4097 at 5 pm on Wednesday.

SPX

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

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

The short term 3 day trend is neutral.

The six-month trend is down.

The twelve-month trend is up.

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 +4.19 – gap spinning top, bull flag bounce, above 30 DMA

AMZN +3.72 – potential hanging man, horizontal breakout, above 30 DMA

BIDU +2.74 – spinning top, bull flag bounce, closed above 30 DMA

GOOG +11.85 – gap spinning top, reverse bear flag, below 30 DMA

NFLX -2.77 – black candle, below 30 DMA

PCLN +8.44 – potential hanging man at resistance, bull flag bounce, above 30 DMA

QCOM +2.24 – gap large white candle, flag bounce, closed above 30 DMA

NDX 100 stocks stronger than the NDX include NVDA, VRSN, MU, STX, ADBE, CTSH, SIRI, AKAM, SNDK and YHOO.

Stocks weaker than the NDX include URBN, NFLX, ALXN, DLTR, GMCR and XLNX.

Stocks to Watch on Thursday

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, CMG,

Moving Above 30 DMA = 22

CLF, COH, CREE, CRUS, DECK, DHR, DLR, ICE, MCP, NDAQ, NETL, NGLS, NKE, NVDA, PCX, SOHU, TIF, UAL, UCO, URE, VMW, ZAGG

Moving Below 30 DMA = 1

FAZ

Staying Below 30 DMA

ARUN, FWLT, GLW, SWK, CROX, TSL, BAC, VECO, LDK, HAL, IBM, LNKD, SNDK, SWKS, TPX, ESI, ANF, FCX, GS, SLB, WLT, SWN, DOW, UNP, ANR, ATI, C, CAT, CRM, FAS, JNPR, SMH, STI, WDC, AKS, TBT, X, ZION, FFIV, RVBD, ENTR, INFA, F, A, GES, IL

Intermediate Term Market Trend: Down

Short Term Market Trend: Up