SPX Breakout Holds on Tuesday as VIX Rises...

Six of nine sectors moved higher on Tuesday.  XLU, XLY and XLE were the strongest sectors. 

Money Flow

Euro      +27 pips    1.3068

TNX       -0.21           20.09

TLT       +0.18         118.45

XLF       -0.08           13.07

SPX      +0.10      1,265.43

VIX       +1.18           21.91

RUT +0.45%

COMPQ +0.25%

NDX +0.24%

SPX +0.01%

INDU -0.02%

TNX and XLF did not follow the Euro higher on Tuesday’s Money Flow.  Lackluster trading on very light volume on this holiday shortened week.  The SPX formed a doji on Tuesday.  Prepare for a potential pullback and test of the SPX diagonal breakout at 1,255.  Keep in mind the market observation to “never short a dull market.”  It was definitely a dull day.

(click image to enlarge)

SPY moved up 10 cents on 85.8 million shares on Tuesday, its second lightest volume day of the year and the fourth consecutive lower daily volume from the preceding day.

AAPL, GOOG, PCLN and QCOM moved higher.  AMZN and BIDU moved lower

Breadth weakened as advancers led decliners 1.03 to 1 on the NYSE and decliners led advancers 1.03 to 1 on the NASDAQ.

Exchange        NYSE        NASDAQ

Advancers       1,515          1,265

Decliners         1,460          1,314       

The VIX moved higher on Tuesday.  This is an indication of a new 5 - 15% uptrend from the Dec 20 SPX level at 1,240, if the VIX remains under 25.  The VIX did not confirm the SPX.

Recent High stocks from Friday ORLY, GRMN, ROST, VRSN, APOL, MYL, ADP AMGN, SBUX, FAST, ISRG, AKAM, V, SWK and UNP moved to a new high on Tuesday.  Strong trends deliver again on Tuesday.

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Setups

Horizontal/Diagonal Breakout – CERN, KLAC, WDC, CSTR, IL, URE, GES, DE, DOW, ENTR, HUM, F, NKE, UCO, AKS, ATI, CIEN, SNDK, ZION

Reversal – ATVI, FOSL, MOS, POT, SWKS

Flag – HANS, FFIV, DTV, MAT, VRTX, TEVA

Recent High – ORLY, GRMN, ROST, VRSN, APOL, MYL, ADP AMGN, SBUX, FAST, ISRG, AKAM, V, SWK, UNP

Pause at High – MYL, V, SWK

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Leading stocks > +2% on Tuesday TIF, UCO, TSLA, CRM

Losing stocks < -2.0% included ZAGG, TSL, PCX, MCP, UAL, ANR, WDC, WLT, CDE, SLW, BAC, C, GS

NDX 100 stocks stronger than the NDX included RIMM, ALXN, WYNN, CERN, ROST, GILD, EA, APOL, DLTR and ISRG.

Stocks weaker than the NDX include SHLD, FSLR, NFLX, MU, STX, GOLD, ORCL, MRVL, MYL and BIDU.

Four NDX stocks BIIB, EXPD, PCLN and WYNN closed above their 30 DMA and three MAT, MRVL and NFLX moved below their 30 DMA making 65 NDX stocks above their 30 DMA. 

Stocks to Watch on Wednesday

Holding Above 30 DMA = 42

V, WDC, LDK, UAL, DLR, CSTR, IL, URE, GES, GRPN, CMG, DE, DOW, ENTR, FAS, HUM, SWK, UNP, F, NKE, UCO, AKS, ATI, C, CIEN, CRUS, FCX, MOS, POT, SMH, SNDK, STI, SWKS, X, ZION, COH, CROX, DHR, ESI, ICE, JDSU, NGLS

Moving Above 30 DMA = 2

ANF, CF

Moving Below 30 DMA = 3

BAC, TBT, TSL

Staying Below 30 DMA

TLT, FFIV, IBM, NTES, FAZ, CAT, CDE, CLF, GS, NDAQ, NVDA, SLB, ANR, RCL, TSLA, A, INFA, CHL, CRM, DECK, HAL, HLF, JNPR, RVBD, VECO, KKD, LVS, SLW, GLW, TIF, VMW, ARUN, CREE, SWN, WLT, PCX, TPX, SOHU, MCP, SINA, ZAGG, LNKD

Twelve Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up