SPX Pauses as Financials and VIX Drops...

Two of nine sectors moved higher on Wednesday, XLP, XLY and XLB were the strongest sectors.

Breadth strengthened as decliners led advancers 1.01 to 1 on the NYSE and advancers led decliners 1.04 to 1 on the NASDAQ.

Exchange        NYSE       NASDAQ

Advancers       1,469          1,275

Decliners         1,498          1,216

The SPY moved down 23 cents on volume of 122.3 million shares.

AAPL -3.46, -0.57% closed at $602.50 on 23 million shares.

Money Flow

Euro       -6 pips    1.3216

TNX        -0.78         22.94

TLT        +1.25       111.79

XLF        -0.07         15.80

SPX        -2.63    1,402.89

VIX         -0.54         15.13

RUT +0.08%

COMPQ +0.04%

NDX -0.03%

SPX -0.19%

INDU -0.35%

Money Flow was atypical on Wednesday as the Euro and SPX were slightly lower.  TNX and XLF moved lower as bonds TLT moved higher.  The VIX moved lower and did not confirm the SPX move on Wednesday.

The Jan 18 SPX breakout has an intermediate term chart target of 1,427 within 12 weeks of the breakout on Jan 18.

Continuation: MCP, NFLX, NTAP, NTES

Pause: ANF, SOHU

Flag Move: CHL, CRM, VMW, ZAGG, WLT

Breakout Move: SWKS, LNKD

Flag Setups: VECO, PCS, CSTR, WYN, ATI, SINA

Breakout Setups: BRCM, X, CIEN, JDSU, JNPR, SMH, CREE, LVS, SWI, SNDK, CRM

Leading stocks > +2% on Wednesday included ZAGG, LNKD, SWI, CROX, NTES, VMW, SNDK, INFA, WLT, CRM, CHL

Losing stocks < -2.0% included TSL, KKD, LDK, GRPN, TBT, SLB, UAL, AKS

NDX 100 stocks stronger than the NDX included GMCR, NFLX, EXPD, ALXN, SNDK, BIDU, CTXS, FAST, MU and NTAP.

Stocks weaker than the NDX include SHLD, FSLR, ORCL, WCRX, GILD, CHKP, CTRP, CA, FLEX and AMGN.

Two NDX stocks AKAM and MYL closed above the 30 DMA and one CA moved below making 78 NDX stocks above their 30 DMA.

Stocks to Watch on Thursday

Holding Above 30 DMA = 58

CMG, NKE, CRUS, SWKS, NGLS, TPX, HLF, LNKD, LVS, CSTR, CRM, INFA, SWI, VMW, IBM, TSLA, V, ICE, TIF, UCO, DLR, SNDK, SINA, ANF, BAC, C, COH, FAS, GS, NTES, SWK, VECO, ZION, DHR, TBT, FFIV, MCP, GLW, URE, A, ARUN, DOW, JDSU, NDAQ, SMH, STI, CLF, X, CIEN, CREE, RCL, UNP, AKS, CF, MOS, POT, SOHU, F, POT

Moving Above 30 DMA = 4

CHL, CROX, WDC, ZAGG

Moving Below 30 DMA = 2

KKD, TSL

Staying Below 30 DMA

ATI, CAT, SWN, GES, PCS, FAZ, TLT, RVBD, SLW, CDE, LDK, SLB, ENTR, HAL, JNPR, ESI, IL, NVDA, DECK, HUM, UAL, WLT, DE, FCX, GRPN, ANR, PCX

Five Month Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral