Monday, June 11, 2012

SPY Gaps Higher, Reverses, Closes Lower after Euro Pulls Back...


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

No comments: