Sunday evening and Monday
morning Asian and European traders moved the Euro and SP futures higher following the announcement that Spain’s
banks were being recapitalized. However,
at the N.Y. open U. S.
traders used the higher prices as a profit taking opportunity. The SPY
which opened above its 30 DMA for
the first time since May 3 sold off with the falling Euro and closed below
its 30 DMA but above Friday’s
low. Volume was a moderate 169.8 million shares.
Today’s price action is an
outstanding example of why experienced pattern traders close trades at price
targets compared with simply moving stops up once the price target is reached.
All nine sectors moved lower on Monday. Defensive sectors XLU,
XLP, and XLV were the strongest sectors.
Breadth
weakened as decliners led advancers 3.90 to 1 on the NYSE
and 3.41 to 1 on the NASDAQ.
Exchange NYSE
NASDAQ
Advancers 617 566
Decliners 2,411 1,931
SPY moved down -$1.68 on 169.8 million shares closing below its 30 DMA
and forming a bearish engulfing candle.
The SPX closed down -16.73 at
1,308.93 above support at 1,292.
The
Market Forecast green line is pointed up.
AAPL
was down 9.15 at 571.17 on 21.1 million shares...
FB
-9 cents at 27.01 on 28.2 million shares...
GRPN
-42 cents, -3.90%…
C
Pattern Continuation: SRCL
C
Pattern Pullback: SWKS COST, AVGO, FISV, AAPL, CSTR
C
Pattern Reversal: INTU, SIAL, CMG
C
Pattern Entry:
C
Pattern Setup: QCOM, AKAM, MSFT, SBUX, GOOG, SHLD, V, DHR, A, CTXS, VMW, ZAGG, TSLA,
CRM, ORLY
Breakout:
Breakout
Continuation: MNST, MCHP,
Breakout
Setup: RVBD,
C, JDSU, EXPD, ALXN, SPY, DIA, QQQ, IWM, AAPL, ICE, VRSN, CHKP, INFA, FAS,
VECO, URE, ROST, CRUS, WFM, MOS, F, BIDU, VMED, PNRA, LVS
Bounce:
DLTR
Daily/Weekly
Bull Flags: MCP, SOHU, GOLD,
MACD
Histogram Bullish Divergence Confirmed: ALTR, TPX, NFLX, MRVL, CROX
Support Break Setup: BBBY
Technical Commentary:
The
Euro and SP futures which gapped higher Sunday evening gave back gains and more
after 9:30 am EDT. The short-term trend
is Neutral.
The expected move as a follow through from Friday did occur, but then
reversed similar to Thursday’s gap up and sell off. Many stocks with a
potential resistance breakout opened above resistance and then closed below
leaving a potential set up for another day.
Watch for a potential support bounce
similar to Friday on Tuesday especially if the Euro holds1.2433 support and
bounces.
Monday Highlights:
SPY
closes down 1.687
The
Euro moved down 37 pips, closed at 1.2476
TNX
-0.37
VIX
rose +2.33, below 25 at
23.56
XLF
closed -25 cents at 13.88
4 of 100 NDX stocks closed higher on Monday…
Leading NDX 100stocks included NVDA, VMED, EXPE, SRCL
Lagging NDX stocks included CTRP, GRMN, GMCR, SHLD, EA, RIMM, FOSL,
WYNN, NFLX, WCRX
Leading stocks > +2% on Monday included FAZ
Losing stocks < -2.0% included AKS, PCX, ANR, TPX, RVBD,
UCO, X, UAL, ATI, JDSU, FAS, CLF, C, ZAGG, VECO, CRM, CRUS, URE, GRPN, CIEN,
SWKS, MCP, BAC, ZION, CREE, VMW, TSL, COH, ANF, TSLA, RCL, SINA, SWI, INFA,
JNPR, CROX, DECK, FCX, STI, CDE, LVS, DE, GES, MOS, CMG, DLR
Stocks to Watch on Tuesday
HoldingAbove 30 DMA = 11
TLT,
FAZ, NTES, CRUS, SWKS, CIEN, ICE, CDE, GES, CSTR, HUM
Moving Above 30 DMA = 0
Moving Below 30 DMA = 1
BAC, CMG, DECK, DLR, F, NKE, RVBD, UAL, VECO
Staying
Below 30 DMA
SINA,
SWI, A, DHR, GRPN, TSLA, V, ZAGG, CRM, LDK, LNKD, CHL, URE, CREE, TSL, STI,
WDC, ANF, ATI, DE, GLW, IBM, SLB, VMW, ESI, FAS, FCX, SMH, TIF, UCO, AKS, ANR,
JNPR, X, HLF, SOHU, CROX, LVS, PCX, RCL, CLF, MCP, SWK, TPX, ZION, INFA, TBT,
JDSU, C, GS, COH, MOS
Eight
Week Intermediate Term Market Trend:
Down
Short Term Market Trend: Neutral
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