SPX Forms Hammer in Flag Pullback as Euro Bounces from Daily Low...

Eight of nine sectors moved lower on Monday.  XLK, XLB and XLV were the strongest sectors.

The SPY broke below the low of the high day for the second straight day, only to rally and close at Thursday’s low.  The SPY is forming a bull flag off Thursday’s high, so a short-term trader that was stopped out with a profit should now be looking for a potential re-entry.  The intermediate term trend is still up.

Money Flow

Euro         -76 pips    1.3142

TNX         -0.61            18.37

TLT         +1.39          119.47

XLF         -0.13            14.00

SPX         -3.32       1,313.01

VIX          +0.87            19.40

NDX +0.14%

INDU -0.05%

COMPQ -0.16%

SPX -0.25%

RUT -0.81%

Money Flow was typical as the Euro fell and TNX moved lower and bonds closed higher.   XLF did rise even though interest moved lower.  The SPX closed lower.  The most recent SPX breakout has a chart target of 1,428 within 12 weeks.

The VIX moved higher and confirm the lower SPX on Monday.

(click image to enlarge)

SPY moved down 45 cents on volume of 146.9 million shares.

Breadth weakened as decliners led advancers 1.69 to 1 on the NYSE and 1.94 to 1 on the NASDAQ.

Exchange        NYSE        NASDAQ

Advancers       1,103             860

Decliners         1,876           1,670

There are a lot of good looking bull flags in the watch list today.  Place some conditional orders tonight and have some fun tomorrow if the market bounces.

(click image to enlarge)

Earnings season continues…

Tuesday – AMZN, BIIB, BRCM, CHRW, XOM, MTW, MAT, PCAR, STX, X

Wednesday – BMC, CMG, EA, ENTR, GMCR, JDSU, LVS, QCOM, NDAQ

Thursday – CME, DOW, MA, MCHP, PCX, RCL

 Leading stocks > +2% on Monday LDK, FAZ, CRUS

Losing stocks < -2.0% included PCX, CREE, X, SOHU, IL, ZAGG, NTES, BAC, CIEN, AKS, JNPR, ESI, FAS, NDAQ, RVBD, ANR, TPX, TBT, DECK, WLT, KKD, C, GRPN, LNKD

NDX 100 stocks stronger than the NDX included PNRA, VRSN, MU, NUAN, QCOM, DELL, SBUX, NFLX, RIMM and MSFT.

Stocks weaker than the NDX include CTRP, SPLS, FSLR, VRTX, WYNN, KLAC, APOL, BBBY, ADSK and MNST.

Three NDX stocks APOL, CHRW and YHOO closed below the 30 DMA leaving 90 NDX stocks above their 30 DMA. 

Stocks to Watch on Tuesday

Holding Above 30 DMA = 72

WDC, DLR, IL, URE, CMG, DE, DOW, ENTR, FAS, SWK, UNP, F, NKE, CIEN, CRUS, SMH, SWKS, JDSU, NGLS, AKS, BAC, CF, CHL, DHR, STI, X, A, C, CAT, CLF, FCX, MOS, POT, TPX, ESI, KKD, CREE, GS, JNPR, CROX, HLF, LNKD, LVS, RCL, SLW, SOHU, TSL, CSTR, SINA, VECO, COH, MCP, ARUN, CDE, CRM, FFIV, HAL, NDAQ, SLB, INFA, NTES, NVDA, VMW, WLT, IBM, ZAGG, UAL, TSLA, UCO, ANF, ANR, LDK, SWN

Moving Above 30 DMA = 1

TLT

Moving Below 30 DMA = 2

TBT, V

Staying Below 30 DMA

ICE, RVBD, UCO, ATI, GES, SNDK, ZION, GLW, HUM, GRPN, TIF, PCX, FAZ, DECK

Sixteen Week Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral