Trading Online NDX, COMPQ Bull Flag Bounce, XLF, SPX Rise as VIX, Bonds Fall......

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All nine sectors moved higher on Wednesday.  XLF, XLY and XLI were the strongest sectors.

Breadth strengthened as advancers led decliners 3.68 to 1 on the NYSE and 2.66 to 1 on the NASDAQ.

Exchange        NYSE       NASDAQ

Advancers       2,375          1,817

Decliners           645             681

On Wednesday, stocks rallied in a classic bull flag bounce in the NDX and COMPQ.  The RUT, SPX and INDU formed bullish harami patterns.  The bounce was broad as advancers led decliners; XLF was the leading sector and 87 NDX 100 stocks moved higher.  However the MF Green Line fell below 80 for the first time since Dec 23. 

A weak Euro over the past week has been a factor in the weak SPX.  If the Euro gains strength as additional Greece debt variables are resolved and ECB funds are made available, then that catalyst could help the support bounce to continue. 

The SPY moved moved up 94 cents on 143.6 million shares.

MSFT, QCOM, INTC, ORCL, AMZN and SBUX led 87 NDX stocks as the NDX rose 18.90 points reversing much of Tuesday’s selloff.

                 

Money Flow

Euro     +37 pips   1.3198

TNX      +0.28          19.72

TLT       -0.72        116.91

XLF       +0.19         14.63

SPX       +9.27    1,352.63

VIX         -1.80         19.07

RUT +1.13%

COMPQ +0.87%

NDX +0.73%

SPX +0.69%

INDU +0.61%

Money Flow was typical on Wednesday as the Euro, TNX, XLF, SPX moved higher and bonds TLT and VIX moved lower.  The Jan 18 SPX breakout has an intermediate term chart target of 1,427 within 12 weeks of the breakout, and clearly has taken a rest pulling back from it 161.2% Fib extension.

The VIX reversed Tuesday’s rise and did confirm the SPX move down on Wednesday.

(click image to enlarge)

Bull Flag Entries on Wednesday - QCOM, WHR, C, GS, CRUS, SWKS, JDSU, SINA, TPX, VRTX, WYNN,

Support Bounce Entry on Wednesday – BAC, MU, RCL, CAT, SLB, ENTR, CF, NTES, SWK, UCO, WCRX, BRCM, FFIV,

Bull Flag Setups to watch on Thursday – CCJ, ZAGG, GRMN, QCOM, LNKD, DHR, AKAM, LO, SWI, MOS, DLR, HLF, FAS, FOSL

Support Bounce Setups - VRSN, PCS, ADSK, INTU, WDC, MTW, STI, GES, NVDA, CREE, CHL, AXP, HAL, RVBD, KKD, ESI and COH

Leading stocks > +2% on Wednesday included SINA, CIEN, CF, BAC, ENTR, FAS, C, VECO, CRUS, FFIV, RCL, NTES, SWKS, A, SWK, JDSU, GS, UCO, TPX, CAT, SOHU, ZION, PCS

Losing stocks < -2.0% included DECK, GRPN, LDK, FAZ, AZGG, PCX, IL

NDX 100 stocks stronger than the NDX included WCRX, BRCM, FFIV, STX, VRTX, NUAN, WYNN, SBUX, INFY and FOSL.

Stocks weaker than the NDX include FSLR, CTRP, GMCR, NFLX, RIMM, GILD, VRSN, ALTR, CSCO and SNDK.

Eleven NDX stocks ADBE, AKAM, BIDU, CHKP, FFIV, INFY, INTC, MU, NWSA, SBUX and TEVA closed above the 30 DMA and one GMCR moved below making 49 NDX stocks above their 30 DMA.

Stocks to Watch on Thursday

Holding Above 30 DMA = 26

CMG, NKE, CRUS, SWKS, NGLS, CHL, TPX, HLF, LNKD, LVS, CSTR, CRM, INFA, SWI, VMW, IBM, TSLA, GES, V, ICE, TIF, UCO, DLR, SNDK, SINA, ANF

Moving Above 30 DMA = 10

BAC, C, COH, FAS, FFIV, GS, NTES, SWK, VECO, ZION

Moving Below 30 DMA = 3

FAZ, TLT, ZAGG

Staying Below 30 DMA

CREE, DHR, KKD, NDAQ, PCS, RVBD, STI, TBT, URE, A, CAT, CF, CROX, DOW, F, MOS, POT, SLW, SWN, TLT, WDC, CDE, LDK, SLB, SMH, ENTR, HAL, JDSU, JNPR, UNP, ARUN, ESI, IL, NVDA, CIEN, GLW, CIEN, GLW, DECK, MCP, TSL, HUM, RCL, UAL, WLT, DE, CLF, FCX, X, GRPN, ANR, PCX, SOHU, AKS, ATI, FAZ

Five Month Intermediate Term Market Trend: Up

Short Term Market Trend: Down