Tuesday, December 3, 2019

SPX Gaps Lower Forms Hammer Candle, Setup for a Potential Bounce on Wednesday...


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Futures sold off in the pre-market after the President indicated that it might be better to wait until after the 2020 election to sign a trade deal with China.  The SPX did bounce from its low of the day and formed a hammer candle pattern.  The SPX, DJI and NDX are set up for a potential channel bounce on Wednesday.

DJIA closed down 280 at 27,502 led by weakness in GS, AAPL, HD, BA and MMM.  Closing below 28,000 for the second day.

Two of eleven sectors were higher on Tuesday, led by XLRE and XLU.

SPY down 2.09 at 309.55 on 75.1 million shares, above average volume.  Down on similar volume.
VIX up 1.05 at 15.96
Oil up .33 at 56.32
TLT up 2.90 at 141.21 on 13.3 million shares
GLD up 1.32 at 139.11


MRK, VZ, PG led the DJIA, 5 advancers, -1
CCI, TTWO, SLG led the SPX, 132 advancers
TTWO, NTES, ILMN, ALXN led the NDX, 25 advancers

Long term up trend intact.  3-day short term trend is down.

Up:
Down: IWM, SPY, DIA, QQQ,                        

Breadth strengthened slightly on Tuesday as decliners led 1,804 to 1,137 on the NYSE and led 1,973 to 1,189 on the NASDAQ

The SPX MFC green line is above 80, is turned down at 87 and is counter-trend defensive

Uptrend sectors XLK, XLV, XLC, XLP, XLF, XLI, XLB,
Neutral sectors:  XLY, XLE, XLU, XLRE,
Down trend sectors:

The 6-month intermediate trend is up.  The ten-day trend is sideways.

3-month Intermediate Term Market Trend: Up
3-day Short Term Market TrendDown

25 of 100 NDX stocks closed higher on Tuesday.

57 NDX stocks are above their 30 DMA:  AAPL, CTXS, ALGN, CELG, CHTR, SWKS, TSLA, ISRG, ORLY, AMGN, REGN, FAST, NTES, PCAR, SIRI, AMD, INCY, VRTX, ISRG, WBA, FOXA, ALXN, FB, MAR, AVGO, BMRN, MSFT, NFLX, HSIC, ADBE, ADSK, CTSH, BIDU, EA, FISV, LULU, ADP, MNST, WLTW, PAYX, WDAY, MELI, CERN, ILMN, GILD, PYPL, ROST, SBUX, HAS, MDLZ, MYL, PEP, VRSK, KHC, ATVI, GOOGL, TTWO,


NDX Stocks to Watch on Wednesday:
Moving Above 30 DMA = 3
ATVI, GOOGL, TTWO,

Moving Below 30 DMA = 10
ADI, AMAT, AMZN, BIIB, CDNS, CHKP, INTC, NTAP, NVDA, NXPI,


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