SPY Pauses as VIX Falls, FB, AMZN, NFLX Breakout...

One of nine sectors moved higher on Monday… XLV, XLK, and XLB were the strongest sectors.   XLU was the weakest sector. 

Breadth weakened on Monday as decliners led advancers…1.19 to 1 on the NYSE and 1.34 to 1 on the NASDAQ…Breadth strengthens as advancers increase and or decliners decrease.  Breadth weakens as advancers decrease and or decliners increase.

Monday – weakened, decliners led

Friday – strengthened, advancers led

Thursday – weakened, advancers led

Wednesday – strengthened, advancers led

The SPY continued to pause at horizontal resistance from September.  At resistance traders should watch closely for prices to rollover and be prepared to protect profits, while at the same time be prepared to continue with the uptrend if a breakout of resistance occurs.

SPY down 40 cents at 145.97...volume 110 million shares…

VIX down .04 at 13.79…
TNX down .12 at 19.03…

TLT up 5 cents at 118.45…
XLF down 4 cents at 17.01…volume 36.1 million shares

AAPL down 3.10 at 523.90…volume 17.2 million shares …

FB up 66 cents at`29.42…on volume of 83.7 million shares…

__________________

Technical Commentary:

The SPY paused at resistance on Monday and did not confirm the potential bearish harami candle pattern formed on Thursday.  IWM continues to lead the broad ETFs and had a modest pullback on Monday.  FB, NFLX, AMZN, CERN, WLT and WAG, broke through resistance on Monday and gave fresh entry signals.

Trade what you see on the chart of your position.  If it is breaking out of resistance take the trade or stay with the uptrend according to your rules.  If the stock begins to rollover protect your profits.

The Euro gained 55 pips to close at 1.3115 on Monday and confirmed its hammer candle pattern.

Disk storage stocks WDC +0.05% and STX +0.10% continued to pause and formed a potential shooting star and spinning top candle patterns.  Coal stocks ANR +2.12%, BTU +0.29%, and WLT +4.18% continued to rise on Monay.

The Market Forecast Green Line is pointed up in the upper reversal zone. 

____________________

Setups

Breakout:  FOSL, GILD, CTRP, JOY, SPY, BRCM, RCL, ACI, BTU, JRCC, NKE, CTXS, MCP

Bull Flag:  IWM, ADBE, ADSK, QCOM, ROST, FFIV, NTAP, QCOM, CIEN, CRM, GLW, IBM, JNPR, DECK, FSLR, GMCR, AKAM, CTSH, SBAC, STX, WDC

Moves

Breakout: FB, NFLX, AMZN, CERN, WLT, TRIP, WAG, EBAY, EQIX, GOOG, SNDK, ANR, YELP, ZION

Bounce:  CRUS

____________________

48 of 100 NDX stocks out of 100 closed higher on Monday…

Leading NDX 100 stocks included:  CELG, AMZN, CTRX, MU, VRTX, VOD, CTXS, CERN, FB, SPLS

Lagging NDX stocks included:  MNST, WFM, NVDA, NTAP, YHOO, BIDU, VIAB, GOLD, ORLY, LMCA

Leading stocks> +2% on Monday included:  MCP, CRUS, ZAGG, SSYS, NFLX, FB, JDSU, ANR

Lagging stocks < -2.0% included:  ESI, LDK, CREE, GMCR, TSL, CDE, TPX, RVBD, CSTR, ICE, DECK, YELP

Stocks to Watch on Tuesday…

Holding Above 30 DMA = 85
YHOO, SBUX, CSCO, NTAP, VMED, SBAC, EXPD, LLTC, PCAR, XLNX, TXN, ADI, SIAL, FISV, ADSK, DELL, FFIV, ORCL, COST, ADBE, GOOG, GRMN, NWSA, DISCA, AMAT, CTSH, FOSL, KLAC, VIAB, NUAN, STX, LBTYA, WDC, AKAM, ALTR, CHKP, FAST, MCHP, SNDK, EQIX, LMCA, CTXS, CHRW, INTC, SIRI, BIDU, VRSK, ADP, AMZN, BRCM, CMCSA, DTV, EBAY, ESRX, EXPE, LINTA, MU, MXIM, MYL, NVDA, SRCL, SYMC, VRTX, WYNN, XRAY, PRGO, FB, ALXN, AMGN, CA, CELG, CERN, GILD, HSIC, INTU, LIFE, PCLN, QCOM, MDLZ, CTRX, REGN, ROST, SPLS, ATVI, VOD

Moving Above 30 DMA =1

SHLD  

Moving Below 30 DMA = 4

BMC, ORLY, PAYX, WFM                          

Staying Below 30 DMA

MNST, MSFT, AAPL, BIIB, MAT, DLTR, BBBY, ISRG, AVGO, GOLD

Seventeen Week Intermediate Term Market Trend: Neutral at Resistance

Short Term Market Trend: Neutral