SPX Holds 1,136 Support, Closes 1,162 Forms Piercing Line...

The SPX rose +8.04 and closed at 1,162.27. Each of the broad indexes formed a bullish candle pattern near support of the five week price sideways trend. Once again traders bought the support level this morning and again late in the day after news on talks between Italy and China discussing Chinese purchase of Italian bonds. The US Dollar weakened, interest rates rose with the TNX closing at 19.30 and financial stocks moved up and the XLF closing at 12.37.

Ten NDX stocks closed above their 30 DMA including AAPL, ADBE, INTC and SBUX with the total above the 30 DMA at 49. In our 30 DMA Watch List, thirteen stocks moved above the 30 DMA with 37 above.

Intermediate Posture based on the MF Green Line moved .02 lower. Expect the MF Green Line to turn bullish on Tuesday with any move up. During the past 6 days the Green Line has remained above 20.


NDX piercing line, closed above30 DMA +1.30%
SPX hammer, below 30 DMA +0.70%
INDU hammer, below 30 DMA +0.63%
COMPQ piercing line, below 30 DMA +1.10%
RUT piercing line, below 30 DMA +0.86%

Breadth strengthened as decliners led advancers 1.09 to 1 on the NYSE and advancers led decliners 1.22 to 1 on the NASDAQ …

Exchange      NYSE     NASDAQ
Advancers     1,440        1,418
Decliners        1,576       1,162

Index      Change        Close      Direction      Confirmation
VIX           + 0.07           38.59         Up               No – SPX
SOX        +10.57          358.96         Up               Yes – COMPQ

Leading stocks > +2% on Monday NETL, ENTR, INFA, VECO, FFIV, SWKS, GMCR, SNDK, UCO, JDSU, DECK, GES, ICE, FAS, NDAQ, NVDA, TPX, COH, STI, DHR, LDK, NKE, VMW, CIEN, SMH, CREE

Losing stocks < -2.0% included ZAGG, PCX, ANR, WLT, TSL, FAZ, HLF, MCP

Eight of nine sectors moved higher on Monday. Technology XLK +1.19%, Consumer Discretionary XLY +1.19% and Financials XLF +1.14% were the strongest sectors.

Interest rates TNX closed +0.15 at 19.30, bond ETF TLT moved up 12 cents and Financials XLF moved up 14 cents. The Euro moved up 23 pips to close at 1.3678 at 5 pm on Monday.

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 +2.46 – piercing line, close above 30 DMA
AMZN +5.17 – bullish engulfing bull flag, above 30 DMA
BIDU +0.60 – white spinning top, potential ascending triangle, above 30 DMA
GOOG +5.27 – piercing line, below 30 DMA
NFLX +6.08 – piercing line, below 30 DMA
PCLN +8.12 – piercing line, above 30 DMA
QCOM +0.98 – bullish engulfing, above 30 DMA

NDX 100 stocks stronger than the NDX include MU, ADSK, MRVL, ALTR, VRTX, FFIV, MXIM, EBAY, GMCR and SNDK.

Stocks weaker than the NDX include WCRX, NIHD, SIRI, JOYG, CTRP, YHOO, TEVA, VOD, BRCM and ORLY.

Stocks to Watch on Tuesday
Holding Above 30 DMA = 24
TLT, CF, CHL, CDE, SLW, DE, GMCR, KKD, MOS, POT, V, JDSU, LVS, NTES, CSTR, SINA, DECK, ICE, NETL, NGLS, NVDA, TIF, JNPR, FAZ
Moving Above 30 DMA = 13
CIEN, CMG, COH, CREE, CRUS, ENTR, HUM, NDAQ, NKE, SMH, UAL, UCO, VMW
Moving Below 30 DMA = 1
PCX
Staying Below 30 DMA
CLF, DLR, HLF, MCP, SOHU, URE, DHR, ZAGG, 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, STI, WDC, AKS, TBT, X, ZION, FFIV, RVBD, INFA, F, A, GES, IL

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