SPX, RUT Soars as Financials, Euro Rise as Bullish Divergence Setups Signal Entry...

All nine sectors moved higher on Tuesday.  XLE, XLB and XLF were the strongest sectors. 

Money Flow

Euro     +82 pips        1.3079

TNX     +1.12               19.25

TLT       -3.09             120.78

XLF      +0.46               12.72

SPX    +35.95          1,241.30

VIX        -1.70               23.22

RUT +4.19%

COMPQ +3.19%

NDX +3.01%

SPX +2.98%

INDU +2.87%

Tuesday’s Money Flow was in line with typical reactions as the Euro rose, the USD weakened, TNX, XLF and the SPX gained and bonds fell.  Stocks opened higher and held their gains all day closing near their daily high.

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SPY moved up $3.64 on 225.2 million shares on Tuesday.  The MF Green Line turned up on Tuesday giving permission to take intermediate term trades.

AAPL, AMZN BIDU, GOOG, PCLN and QCOM moved higher on Tuesday. 

Breadth strengthened as advancers led decliners 7.16 to 1 on the NYSE and 4.72 to 1 on the NASDAQ.

Exchange        NYSE        NASDAQ

Advancers       2,687          2,198

Decliners           375             465

The VIX dropped on Tuesday to its lowest level since August 3.  This could be a significant indication of a new major uptrend if the VIX remains under 25.  During the past two years there have been three times the VIX has fallen below 25 and stayed below, Feb 2010, September 2010 and March 2011.  In each of these three times the SPX has risen 5 to 15% during the next 60 days.

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Oh, by the way that’s a descending triangle downside breakout on the VIX in case you didn’t notice!

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Remember that 1,363 price target?  Just remember you read it here first.

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On Friday, Chart Signals listed 67 MACD Bullish Divergence Setups.  Only one, GLW, has not confirmed as of Tuesday.  Many triggered their entry signal on Tuesday after a few gave entry signals on Monday.  See Friday's Post for the complete list...

There are 28 Setups that have a confirmed Divergence and still waiting to trigger the entry signal:  ANR, ARUN, BAC, COH, CREE, CRM, ESI, INFA, KKD, SWN, TIF, VECO, VMW, WLT, ZION, ZAGG, AMAT, ATVI, BRCM, CTXS, EA, EXPD, ILMN, LRCX, STX, SYMC, VMED and WCRX

PCX formed a potential Bullish Divergence on Monday and confirmed on Tuesday.

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Leading stocks > +2% on Tuesday CIEN, FAS, TSL, JNPR, PCX, HAL, UCO, ENTR, ANR, CRUS, JDSU, CLF, ANF, STI, FFIV, AKS, ATI, MCP, CLF, SWK, URE, RVBD, ARUN, NVDA, SINA, SLW, MOS, CDE, SOHU, SWKS, FCX, CAT, X, LVS, TBT, ZION, WLT, SLB, DOW, LNG, IL, C, NTES, CMG, DE, POT, SNDK, WDC, A, SMH, KKD, DHR, GS, BAC, CSTR, CROX, NDAQ, GRPN, ICE, F, COH, INFA, V, UNP, VECO, TPX, DLR, HLF, ESI, IBM, HUM, CHL, DECK

Losing stocks < -2.0% included FAZ, TLT, ZAGG

NDX 100 stocks stronger than the NDX included FSLR, FFIV, MU, NFLX, BIDU, ALTR, KLAC, NVDA, CTSH and INTU.

Stocks weaker than the NDX include RIMM and GMCR.

Twenty Eight NDX stocks AAPL, ADBE, ALTR, BBBY, CHRW, CSCO, CTSH, EBAY, EXPE, FFIV, FISV, FLIR, HSIC, INTU, KLAC, LIFE, LINTA, MCHP, MSFT, MU, MXIM, NWSA, PNRA, SRCL, URBN, VOD, WFM and XRAY closed above their 30 DMA making 49 NDX stocks above their 30 DMA. 

Stocks to Watch on Wednesday

Holding Above 30 DMA = 12

NGLS, V, WDC, LDK, NTES, UAL, DLR, TLT, CSTR, IL, URE, GES

Moving Above 30 DMA = 11

CMG, DE, DHR, DOW, ENTR, FAS, FFIV, HUM, IBM, SWK, UNP

Moving Below 30 DMA = 1

FAZ

Staying Below 30 DMA

NKE, SNDK, UCO, F, TSL, X, AKS, ATI, C, CAT, CDE, CLF, CRUS, FCX, GS, ICE, NDAQ, NVDA, SLB, SMH, TBT, ANR, RCL, TSLA, A, COH, INFA, CHL, CRM, DECK, HAL, HLF, JNPR, RVBD, STI, VECO, ZION, KKD, LVS, SLW, GLW, TIF CIEN, JDSU, VMW, ARUN, CF, CREE, SWN, WLT, MOS, PCX, TPX, GES, SOHU, MCP, BAC, CSTR, POT, SINA, SWKS, ZAGG, LNKD, ANF, ESI, CROX, GRPN

Eleven Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up