SPX Falls to Support on Weak Euro, TNX and Financials...

All nine sectors moved lower on Monday with XLP -1.45%, XLK -2.25% and XLU -2.38% the strongest sectors. 

The SPX closed at support and traders must now prepare for a potential break of support.  Key factors on Tuesday will likely be the strength or weakness of the Euro, interest rates and financial stocks.  Of course support is a pivot point and prices can still bounce up.  Traders must be prepared for a move in either direction.

The RUT broke horizontal support, the SPX closed at support and the INDU and NDX closed above horizontal support.

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 -5.38%, COMPQ -3.29%, SPX -2.85%, NDX -2.53% and INDU -2.36%.  The SPX moved down -32.19 and closed at 1,099.32.42.  The VIX moved up 2.49 and closed at 45.45.

(click image to enlarge)

The SP futures sold down overnight and the SPY opened Monday down 66 cents at 112.49.  The SPY filled the 66 cent gap and rose to 113.95 up 80 cents before sellers took over.  Following a lower Euro, TNX and XLF a stronger dollar and bonds TLT, the SPY started moving lower by mid-day.  In the last 15 minutes the SPY dropped more that 1.35 to close at 109.93.

The Euro, as on Friday, moved down 209 pips to close at 1.3177 at 5 pm on Monday.  Interest rates TNX closed down -1.39 at 17.85, bond ETF TLT rose 3.01 to a new high close at 123.81 and Financials XLF closed down 53 cents.

SPY volume increased to 364.7 million shares, less than the 513 million share on September 22.

By Monday’s close the big NDX leaders like AAPL, AMZN, BIDU, GMCR, GOOG, QCOM and WYNN moved -1% to -5% lower.  Ninety six NDX stocks moved lower.

Breadth weakened as decliners led advancers 9.42 to 1 on the NYSE and 3.39 to 1 on the NASDAQ.

Exchange       NYSE        NASDAQ

Advancers         296             586

Decliners        2,790            1,992          

Leading stocks > +2% on Monday FAZ, TLT

Losing stocks < -4.0% included PCX, LDK, FAS, AKS, UAL, CREE, JDSU, C, BAC, URE, ANR, ENTR, KKD, ATI, MCP, X, TSL, CIEN, IL, RCL, TPX, CROX, GES, CRUS, HAL, A, ZAGG, GMCR, CLF, NVDA, SWKS, TBT, DECK, HLF, UCO, WLT, SINA, HUM, NTES, GS, ESI, STI, CAT, DE, WDC, LVS, DOW

NDX 100 stocks stronger than the NDX included YHOO, RIMM, ATVI, VOD and NFLX.

Stocks weaker than the NDX include MU, VRTX, ADSK, FSLR, STX, NIHD, WCRX, ILMN, AKAM and GMCR.

Twelve NDX stocks including ADSK, AMZN, BBBY, CERN, CTSH, INTC and SNDK moved below their 30 DMA leaving just 10 NDX stocks above the 30 DMA. 

Stocks to Watch on Tuesday

Holding Above 30 DMA = 4

TLT, IBM, ARUN, FAZ

Moving Above 30 DMA = 0

Moving Below 30 DMA = 5

DECK, ICE, INFA, SNDK, UAL

Staying Below 30 DMA

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