Euro, SPY, GOOG, AMZN, PCLN Sell Off as Coal, Steel Stocks Rise and AAPL Forms Hammer

Only one of nine sectors moved higher on Tuesday…XLE, XLU and XLF were the strongest sectors.

Breadth weakened on Tuesday as decliners led advancers 1.51 to 1 on the NYSE and decliners led advancers 1.83 to 1 on the NASDAQ…

Exchange     NYSE    NASDAQ

Advancers      692        543
Decliners      2,333      1,934

SPY down 1.44 cents at 144.20...volume 148.8 million shares

VIX up 1.26 at 16.37…

TNX down 26 cents at 17.20…
TLT down 22 cents at 121.95…
XLF down 10 cents at 15.95…

AAPL down 2.32 at 635.85…volume 29.9 million shares …formed a hammer at its support break price target

FB down 17 cents at 20.23… volume 27.1 million shares…

The Market Forecast green line pointed down today.         

Technical Commentary:

Tuesday the NQ broke its 2,775 and 2,750 support levels while the ES and SPY traded above short-term support levels.  The Euro moved lower as interest rates and bonds TLT moved slightly lower.  The VIX jumped confirming the selloff in SPY.  Financials XLF were relatively strong pulling back slightly in a bull flag pattern.

AAPL formed a long tail hammer after reaching its support break price target.

Coal stocks CNX, ANR, WLT, BTU, JRCC and ACI were strong after GS comments on coal spot prices.  X rose after coverage was initiated by VTB Capital with a price target of 28.60.  Other steel stocks AKS, ATI and NUE also rose.

Earnings Season started today.

 

Earnings to Watch:

Tuesday – AA reported after close beat on EPS and revenues, sees 2012 global aluminum demand at +6% vs. previous +7%

YUM +2.66, +4.03% beat EPS, raised guidance

Wednesday – COST

Thursday – FAST

Friday – JPM, WFC, INFY

Chart Targets:

SPY = 147.88 2.61 Fib

ES = 1,466.00 2.61 Fib on ESZ2

EUR/USD = 1.3095 1.60 Fib, 1.3345 S&R Measuring

Short-term support at
143.09, 142.33 = SPY
1,424, 1,417.50 = ES
2,735, 2,695, 2,650 = NQ

Setups:

Bull Flag: NTES, SINA, SWK, RVBD, HUM, MS, ZAGG, TBT, XLF, BAC, C, WFC, STI, PHM, HLF, OI, V, F, PAY, ZION, AMGN, ADP, CHRW, CELG, CERN, CTSH, CMCSA, FFIV, FAST, GILD, LIFE, MNST, MYUL, NFLX, NWSA, ORLY, PRGO

Hammer: AAPL, AVGO, ALTR

Resistance Setup: GTI, GRPN,

At Support: FB, AKAM, ALXN, AMZN, BIDU, BIIB, CA, CTXS, XRAY, DLTR, ESRX, FOSL, GRMN, HSIC, INFY, ISRG, KLAC, MRVL, MCHP, MU, MYL, NTAP, ORCL, SIAL, SRCL, SYMC, TXN, XLNX

Break of Support:  LVS, IWM, SOHU, ADSK, AMAT, BRCM, DTV, EBAY, EXPE, EXPD, INTC, MSFT, NUAN, NVDA, QCOM, STX, SBUX

Gap Down:  EW

Resistance BO:  KWK

Bounce: JRCC, ANR, BTU, CNX, ACI, HUM, STI, RSH, NFX, FST, UPL, SM

5 of 100 NDX stocks closed higher on Tuesday…

Leading NDX 100 stocks included:  GMCR, KRFT, SHLD, EA, LRCX

Lagging NDX stocks included: NFLX, BIDU, RIMM, FOSL, GRMN, NUAN, EBAY, CTXS, ALXN, DTV

Leading stocks > +2% on Tuesday included:  ANR, UCO, X, CLF, FAZ

Lagging stocks < -2.0% included: VMW, TSL, LNKD, TPX, GRPN, TSLA, WDC, SOHU, SWI, SWK, CROX, JDSU, DHR, FAS, LVS, VECO, NTES

Stocks to Watch on Wednesday…

Holding Above 30 DMA = 26

GS, RVBD, C, FAS, FCX, RCL, STI, BAC, CDE,  ZION, HUM, GLW, DE, DHR, IBM, V, CHL, GRPN, NTES, CRM, UAL, HLF, F, TBT, TPX, CLF

Moving Above 30 DMA = 1

ANR

Moving Below 30 DMA = 8

A, LNKD, LVS, SWK, TIF, TSL, TSLA, VMW

Staying Below 30 DMA

ZAGG, FB, SWI,SINA, TLT, ATI, CMG, INFA, JDSU, SOHU, MCP, ESI, ICE, MOS, SLB, ANF, CREE, CRUS, JNPR, URE, COH, CROX, NKE, VECO, CSTR, DECK, UCO, AKS, DLR, SMH, SWKS, X, WDC, CIEN, GES, FAZ, LDK

Eighteen Week Intermediate Term Market Trend: Up

Short Term Market Trend: Down