Futures Point to a Slightly Higher Open...STX Up on Heavy Volume...

BMO – ES +3.50 and NQ +9.50 futures slightly higher about 20 minutes before the open in pre-market trading and point to a higher open…

TLT is down 88 cents and the Euro is up 4 pips in premarket trading and is above horizontal resistance …

NDX leaders AAPL, PCLN and NFLX are higher in pre-market trading…AMZN and BIDU are flat…GOOG is lower…

Look at STX which is higher on heavy volume in pre-market trading…

Dave’s Insight for Monday: The broad market is in short term consolidation until it breaks out of either resistance or support.  Continue to follow your rules, look for breakout, support bounce and divergence entries and enter when you see the signal…

SPX

Resistance: 1,330, 1,344, 1,362

Support: 1,321, 1,311, 1,300

Quoting Down – CIEN, CRM, VMW, TLT, NETL, CMG, AGU, DECK, UNP, A, RVBD, UAL, GOOG, CHRW, CTSH, WYNN, APOL, AMZN

Quoting Up – WLT, MCP, VECO, UCO, NFLX, PCLN, STX, URBN, TIF, SLW, NDAQ, TBT, GS, ATI, PCX, CLF, FWLT, NYX, JNPR, SBUX, ISRG, VOD, QCOM, FSLR, AKAM

I reported in the Tuesday post that at my AT Workshop on Tuesday, we placed a counter-trend virtual trade on the SPY buying 50 contracts of the March quarterly 132 put on a conditional entry at 131.88.  The order filled at 11:25:02 at 2.83 per contract.  The closing price was 3.625 mark for a ROI of $3,975 or +29%.

On Tuesday shortly before the close and before we were aware of the day’s ending profit, I told the class that we would move the stop to at least breakeven, thereby taking the principal risk off the table.  That evening after evaluating the profit I determined that on a low probability counter trend trade the stop should be moved to half the profit. 

On Wednesday morning I moved the stop on 49 contracts from a conditional order on the stock to a stop order on the option price at 3.23 or 40 cents per contract.  The reason I did not move the stop on 1 contract was in case the options got stopped out before class started on Wednesday, I wanted to be able to show everyone how to change the stop from a conditional order on the stock to a stop on the option price.

At 7:51:29 am MT the stop order was triggered at 3.23 and filled at 3.22 on 49 contracts.  Later on Wednesday I showed the class how to change the stop and the 1 contract was filled at 3.01.  The total real time virtual gain generated was $1,929 or 13.6% from Tuesday to Wednesday on this counter trend trade.  I also reviewed the results from this virtual trade in Thursday night’s AT Trading Room.

The trade management here was right because SPY did not follow through to the downside and finished higher on Wednesday and Thursday sending the 132 Mar quarterly significantly under the cost basis on Tuesday.

If you have an interest in learning how to counter trend trade right, send me an email at chartsignals@yahoo.com.

SPY Fills Thursday's Gap and Bounces...PCLN New High Close...

The SPX formed a black candle that closed at Thursday’s S1 -9.83 at 1,321.15 on Friday.  The SPX continues a short term consolidation or sideways trend identified in Tuesday's post.  A breakout above 1,332 will generate a SPX price target of 1,362.  The potential breakout did not occur on Friday.

(click image to enlarge)

SPX black candle, Thursday’s S1 holds

INDU black candle, Thursday’s S1 holds

COMPQ black candle, Thursday’s S1 holds

RUT long lower shadow spinning top, close above Feb 28 close and Thursday’s S1

Breadth weakened on Friday as decliners led advancers 1.87 to 1 on the NYSE and 1.85 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      1,035                 922

Decliners        1,945              1,710

Index              Chg.    Close    Direction      Confirmation

VIX                +0.46       19.06     Up                 Yes – SPX

SOX               -4.95     459.82     Down            Yes – COMPQ

Leading stocks > +2% on Friday included A, JDSU, SINA, UCO, ARUN, RVBD, FAZ, CMG, SLW, SOHU 

Losing stocks < -2.0% included CF, FAS, UAL, CREE, STI, JEC, F, ESI, GS

Positives – SPX S1 holds, NFLX, PCLN, BIDU, Euro, RUT strongest of broad indexes

Negatives – TNX, bonds rose, breadth dropped significantly, all sectors lower

Each day Chart Signals list the positives and negatives of the technical action.  As you can see from the past posts, the action is seldom only positive or negative.  Most days the technical action has both positive and negative attributes.  Friday is not any different.

I want to make mention of the Euro breakout.  While no two assets have 100% correlation, over the past 24 months there has been approximately a 71% correlation between the Euro and the SPX, meaning they have moved in the same direction most of the time.  There is an even stronger correlation between the SPX and financial stocks.

The Euro breakout suggests a price target close to 1.4300 (see below).  Both the SPX and financial stocks are consolidating sideways.  The Euro correlation suggests if the Euro moves higher that it is likely the SPX also moves higher.  The financial stocks correlation suggests that the SPX is NOT likely to move higher if financial stocks fail to move higher.

So one of two outcomes would be likely (not certain), either US interest rates, financial stocks and the SPX begins to rise or the Euro breakout fails.  Since the SPX is in both a long term and intermediate term up trend, the larger technical probability is for the SPX to rise.

Good technical traders should position for the more likely scenario, but stay mentally flexible if the lower probability begins to unfold.

Interest rates moved lower on Friday and bond ETF TLT formed a bullish engulfing pattern rising 75 cents.  The Euro rose 23 pips to 1.3963 at 5 pm ET continuing above its Feb 1 horizontal resistance.  The Euro breakout signals a multi-week price target of 1.4296.

All nine sectors fell on Friday with Financials XLF -1.23% and Industrials XLI -1.16%, the weakest of all sectors.

Friday's Movers and Setups

Thursday nights review stocks included Friday big movers and movers A, ARUN, RVBD, PCLN, PCX, WYNN and NTES.  Others stocks listed CAT, CRUS, DISH, DOW, JOYG, NETL, QCOM and VLO had modest down days and stayed above their 30 DMA.

Only SOHU from the 30 DMA setups crossed above on Friday.  The following stocks could cross their 30 DMA on Monday: BAC, FWLT, JEC, STI, TBT

Breakouts SLW, CAM, RVBD, IL and VRTX moved higher.

Setups

Bull Flag – NDAQ, VLO, NYX, ATI, URE, TSL, DLR, HANS, HUM,  SLB, STI, SOHU, XL, NFLX, SWKS, BIDU, LULU, CMG, OPEN, ARMH, CHK, HLF

Breakout – JNPR, JSDU, CLF, GLW, NTES, NETL, CAT, ATW, SWK, ICE, CIEN, PCLN, AAPL, SMH

SPX

Resistance: 1,330, 1,344, 1,362

Support: 1,321, 1,311, 1,300

The short term 3 day trend is neutral.
The six-month trend is up.
The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

AAPL +0.44 – doji approaching horizontal resistance

AMZN -1.12 – hammer at horizontal support

NFLX +7.35 – bullish engulfing confirms hammer at earnings gap support

QCOM -0.69 – black candle in bull flag support bounce

GOOG -8.94 – large black candle back to support

BIDU +0.49 – spinning top at short term resistance, 9 day new high close

NDX 100 stocks stronger than the NDX include NFLX, EXPE, VRTX, CTXS, GILD, GRMN, YHOO, DLTR, WFMI, PCLN, XRAY, ADBE, MU, VMED and ATVI.

Stocks weaker than the NDX include MRVL, CA, SPLS, RIMM, EBAY, CEPH, APOL, PCAR, CHKP, VOD, STX, FLIR, MYL, ESRX and GOOG.

Stocks to Watch on Monday
Holding Above 30 DMA

NDAQ, VLO, CLF, JDSU, CRUS, GLW, NYX, URE, DLR, HUM, NTES, CAM,  SLB, CAT, NETL, ATW, SWK, ICE, JNPR, AMD, DHR,  ARUN, CIEN, DECK, GMCR, RVBD, SLW, ESI, HLF, UCO, MOS, SWKS, AGU, POT, MCP, CMG, HAS, MHS, SMH, V, VECO, A, ACN, CSTR, DE, DOW, GES, IPI, PCX, TIF, UNP, WLT

Moving Above 30 DMA = 3

FAZ, SOHU, TLT

Moving Below 30 DMA = 3

ATI, CF, FAS

Staying Below 30 DMA

AKS, SWN, CRM, LDK, SNDK, STI, TSL, BAC, FWLT, GS, JEC, LVS, NVDA, TBT, UAL, X, SINA, ZION, VMW, UNG, F, CHL, FCX

Deleted = AIV, BA, CREE, DISH, FDX, GME, HANS, HSY, LCC, LXK, MA, PCP, PNC, SKX, SPG, TIE, WHR

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

2011 Your Best Year Ever... 

Week 9 is over as is February.  The broad indexes are up slightly for Week 9 and are still up YTD.  There are just 43 weeks left as we continue towards our objective to make 2011 your best year ever. 

Again evaluate your trades for the week.  Did you buy, hold and sell where you were supposed to according to your rules? 

Give yourself an A+ or 10 for each trade that you did follow your rules.

How is your portfolio doing YTD compared with the following indexes?  If you outperformed the SOX give yourself an A+, the INDU, NDX or SPX give yourself an A.

 

                         Week 9              YTD

SPX                    0.10%              5.05%

NDX                   0.58%              6.41%

SOX                  -0.83%            11.66%

INDU                  0.33%              5.12%

Take your annual goal that you sent in to Chart Signals and divide that goal by 52 weeks and multiply by 9.  How does your week 9 results compare to your goal?  If you are at the goal or higher give yourself and A+.

If you are underperforming your goal or the broader market you should take the time to determine why.  Are you not following rules?  Have any of the stocks you are trading changed to a sideways or down trend and you failed to exit?

The review and evaluation of under performance can lead you to making the changes that you need to make so that you can outperform the market and achieve the goal you have set for your portfolio.

SPY Fills Thursday's Gap and Bounces...PCLN New High Close...

Unemployment Drops to 8.9%...Futures Point to a Flat to Slightly Lower Open...

BMO – ES -1.75 and NQ -3.00 futures are flat to slightly lower about 20 minutes before the open in pre-market trading and point to a flat to lower open…Unemployment rate drops to 8.9%, its lowest level since April 2009…

TLT is down 27 cents and the Euro is up 7 pips in premarket trading and is above horizontal resistance …

NDX leaders AAPL, BIDU and GOOG are higher in pre-market trading…NFLX is flat…AMZN are PCLN are lower…

Dave’s Insight for Friday: Continue to follow your rules, look for breakout, support bounce or bullish divergence entries and enter when you see the signal…this is the end of week nine so it is time to evalute your YTD resutls and compare with the market and your 2011 goal again...

SPX

Resistance: 1,311, 1,321, 1,330

Support: 1,300, 1,281, 1,271

Quoting Down – GS, MRVL, CMG, GMCR, WLT, LVS, TLT, V, SINA, PCLN, KLAC, RIMM, AMZN, AMGN

Quoting Up – CRM, DLTR, GOOG, AAPL, UCO, DE, SLW, SWKS, IPI, CAT, A, DECK, TBT, VMW, JNPR, MCP, CHL, FCX, ISRG, PCAR, BIDU, WFMI, VRTX, ALTR

SPX Rises 22 Points, Makes Highest Close Since the Feb 18 High...

The SPX formed a large white candle and closed up +22.53 at 1,330.97 on Thursday.  A breakout above 1,332 will generate a SPX price target of 1,362.  We will look for a potential breakout on Friday.  Watch for the jobs report Friday morning...

SPX morning star pattern

INDU morning star pattern

COMPQ large white candle breaks short term resistance

RUT large white candle breaks short term resistance

Breadth strengthened again on Thursday as advancers led decliners 4.43 to 1 on the NYSE and 3.32 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      2,468             2,051

Decliners           556               617

Index              Chg.    Close    Direction      Confirmation

VIX                 -2.10       18.60     Down            Yes – SPX

SOX              +8.68     464.77     Up                 Yes – COMPQ

Leading stocks > +2% on Thursday included ARUN, VLO, CRUS, FAS, RVBD, LCC, ATI, CIEN, PCX, NETL, CF, CLF, ACN, WLT, GES, GMCR, DISH, DOW, DE, NTES, IPI, A, CAT, BAC, FWLT, BA, FDX, URE, SINA, PCP, CAM, STI, SWKS, WHR,  V, HAS, JDSU, TIE, GLW, UAL, TIF, AGU, VMW, MA, GME, MCP, HANS, AIV, SMH, SLB  

Losing stocks < -2.0% included FAZ

Positives – SPX, INDU, COMPQ, NDX, RUT, VIX, AAPL, BIDU, GOOG, PCLN, QCOM, breadth and sectors strengthened, TNX, Euro, bonds fell

Negatives –

Interest rates bounced higher on Thursday and bond ETF TLT fell sharply for the second straight day down -0.89.  The Euro rose 100 pips to 1.3963 at 5 pm ET closing above its Feb 1 horizontal resistance.  The Euro breakout signals a higher Euro and lower dollar.

All nine sectors rose on Thursday with Industrials XLI +2.42%, Healthcare XLV +2.06% and Financials XLF +2.04% leading all sectors.

Review the stocks that crossed above their 30 DMA and those already above their 30 DMA for support bounce and breakout opportunities including:  A, ARUN, CAT, CRUS, DISH, DOW, JOYG, NETL, NTES, PCLN, PCX, QCOM, RVBD, VLO, WYNN...and ETFs SPY, QQQQ, IWM and DIA

Many stocks are setup and could cross their 30 DMA on Friday including: BAC, FWLT, JEC, STI, SOHU, TBT

SPX

Resistance: 1,330, 1,344, 1,362

Support: 1,321, 1,311, 1,300

The short term 3 day trend is neutral.
The six-month trend is up.
The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

AAPL +7.44 – spinning top approaching horizontal resistance

AMZN +0.77 – black spinning top confirms piercing line at horizontal support

NFLX -0.86 – spinning top does not confirm hammer at earnings gap support

QCOM +1.74 – white candle in bull flag support bounce

GOOG +8.77 – white candle above high of low day in support bounce

BIDU +2.36 – spinning top support bounce off 30 DMA and earnings gap

NDX 100 stocks stronger than the NDX include VRTX, FLEX, MU, ALTR, RIMM, WYNN, PCLN, CHRW, BMC, JOYG, CHKP, WCRX, QCOM, KLAC and LRCX.

Stocks weaker than the NDX include AKAM, NFLX, TEVA, GENZ, CSCO and FSLR.

Stocks to Watch on Friday
Holding Above 30 DMA
NDAQ, VLO, CLF, JDSU, CRUS, GLW, NYX, URE, DISH, DLR, HUM, NTES, CAM,  SLB, SPG, CAT, NETL, ATW, SWK, ICE, JNPR, AMD, DHR,  ARUN, CIEN, HSY, DECK, GMCR, RVBD, SLW, ESI, HLF, UCO, MOS, SWKS, AGU, POT, MCP, CMG, HAS, MA, MHS, SMH, V, VECO

Moving Above 30 DMA = 16

A, ACN, ATI, BA, CF, CSTR, DE, DOW, FAS, GES, HANS, IPI, PCX, TIF, UNP, WLT

Moving Below 30 DMA = 2

FAZ, TLT

Staying Below 30 DMA

SOHU, AIV, AKS, SWN, CRM, LDK, SNDK, STI, TSL, TIE, BAC, FDX, FWLT, GS, JEC, LVS, LXK, NVDA, PCP, PNC, TBT, UAL, X, SINA, SKX, ZION, VMW, UNG, WHR, F, LCC, CHL, FCX, CREE, GME

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

Futures Point to a Higher Open...

Dave will teach today in the
Intro to Trading Stocks at 7:30 am MT and
Advanced Technicals Trading Room at 5:00 pm MT (formerly known as Active Investor Talk)

BMO – ES +11.50 and NQ +18.00 futures are higher about 60 minutes before the open in pre-market trading and point to a higher open…

TLT is up 5 cents and the Euro is down 16 pips in premarket trading and is nearing horizontal resistance …

NDX leaders AAPL, AMZN, BIDU, GOOG, NFLX and PCLN are higher in pre-market trading…

Dave’s Insight for Thursday: Follow your rules, look for new entries and re-entry...Remember, this is an up trend…

SPX

Resistance: 1,311, 1,321, 1,330

Support: 1,300, 1,281, 1,271

Quoting Down – FAZ, UCO, SOHU, NTES, SLW, DECK

Quoting Up – PCLN, GOOG, FSLR, AAPL, NFLX, FFIV, BIDU, AMZN, CHKP, SHLD, CMG, CRM, DE, CLF, WLT, SINA, MOS, GS, POT, TSL, VMW, X, FDX, CAT, MCP, FAS, FCX, PCX, CREE, V, SLB, CIEN, BA, VLO, UAL, ESI, SWKS, RVBD, CSTR, LDK, GLW, DOW, CAM, NYX, AGU, JDXU, CRUS, SPG, ESRX, JOYG, EBAY, SNDK, VOD, QCOM, INFY, COST, AKAM, NVDA, RIMM, XLNX, BRCM, KLAC

SPX Forms Inverted Hammer at Feb 23 - 24 Horizontal Support Level...

Dave is traveling home from an AT Workshop in Phoenix tonight...

SPX spinning top at support

INDU spinning top at support

COMPQ spinning top at support, higher low

RUT spinning top at support, higher low

Breadth strengthened on Wednesday and turned positive as advancers led decliners 1.73 to 1 on the NYSE and 1.25 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      1,901             1,472

Decliners        1,094              1,170

Index              Chg.    Close    Direction      Confirmation

VIX                 -0.31       20.70     Down            Yes – SPX

SOX              +6.31     456.09     Up                 Yes – COMPQ

Leading stocks > +2% on Wednesday included PCX, WLT, CAM, CIEN, UCO, TBT, CLF, MA, CSTR, SMH, VMW

Losing stocks < -2.0% included SINA, NVDA, SOHU, JDSU, UAL

Positives – breadth and sectors strengthened, TNX, Euro, AAPL, AMZN, BIDU, PCLN, bonds fell

Negatives –

Downward momentum halted on Wednesday as selling pressure decreased and buying pressure increased. 

Interest rates moved higher on Wednesday and bond ETF TLT was down -1.42.  The Euro rose 88 pips to 1.3863 at 5 pm ET

SPX

Resistance: 1,311, 1,321, 1,330

Support: 1,300, 1,281, 1,271

The short term 3 day trend is neutral.
The six-month trend is up.
The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

AAPL +2.81 – spinning top, close above 30 DMA

AMZN +2.58 – piercing line at horizontal support

NFLX -0.40 – spinning top does not confirm hammer at earnings gap support

QCOM -0.94 – black candle in bull flag pullback

GOOG +0.03 – spinning top at horizontal support

BIDU +1.66 – spinning top at earnings gap support

NDX 100 stocks stronger than the NDX include XLNX, LRCX, KLAC, YHOO, ALTR, BRCM, VRTX, CEPH, WFMI, EXPD, AKAM, SRCL, STX, NWSA and CTXS.

Stocks weaker than the NDX include NVDA, JOYG, COST, ADSK, FLEX, QCOM, FSLR, NIHD, AMGN, RIMM, CMCSA, HSIC, SBUX, FISV and CSCO.

Stocks to Watch on Thursday
Holding Above 30 DMA
NDAQ, VLO, CLF, JDSU, CRUS, GLW, NYX, URE, DISH, DLR, HUM, NTES, CAM,  SLB, SPG, CAT, NETL, ATW, SWK, ICE, JNPR, AMD, DHR,  ARUN, CIEN, HSY, DECK, GMCR, GES, RVBD, SLW, ESI, HLF, TLT, MOS, SWKS, AGU, POT, FAZ, MCP

Moving Above 30 DMA = 7

CMG, HAS, MA, MHS, SMH, V, VECO

Moving Below 30 DMA = 3

HANS, IPI, SOHU

Staying Below 30 DMA

AIV, AKS, ATI, BA, CF, DOW, FAS, GES, SWN, TIF, UNP, ACN, CRM, CSTR, LDK, SNDK, STI, TSL, TIE, A, BAC, DE, FDX, FWLT, GS, JEC, LVS, LXK, NVDA, PCP, PNC, TBT, UAL, X, PCX, SINA, SKX, WLT, ZION, VMW, UNG, WHR, F, LCC, CHL, FCX, CREE, GME, UCO

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

Futures Point to a Flat to Slightly Higher Open...

BMO – ES +2.25 and NQ +3.00 futures are slightly higher about 15 minutes before the open in pre-market trading and point to a flat to higher open…SPY is down -14 cents...

TLT is down -62 cents and the Euro is up 76 pips in premarket trading and is nearing horizontal resistance …

NDX leaders AAPL and NFLX are higher in pre-market trading… AMZN, GOOG BIDU and PCLN are lower…

Dave’s Insight for Wednesday: Trade with the trend, follow your rules, exit at your targets or stops, look for new entries and re-entry…

SPX
Resistance: 1,311, 1,321, 1,330
Support: 1,300, 1,281, 1,271

Quoting Down – SINA, CF, MOS, TLT, POT, CLF, BA, URE, LVS, GMCR, FCX, WLT, JOYG, FFIV, AMZN, BIDU, WYNN, SHLD, CTSH, SPLS, ALTR, CELG, PCLN, COST

Quoting Up – HLF, MA, NTES, CRM, CMG, TBT, PCP, SLW, SPG, NFLX, AAPL, FSLR, XLNX, YHOO, EXPE, VOD, TEVA

SPX Rolls Over with Bearish Engulfing Pattern on Heavy Selling...

The SPX formed a bearish engulfing pattern after opening higher and selling off to close down -20.89 at 1,306.33 on Tuesday. Tuesday’s action was a key reversal day coming off a lower high creating a classic counter trend entry. In my AT Workshop we placed a counter-trend virtual trade on the SPY buying 50 contracts of the March quarterly 132 put on a conditional entry at 131.88. The order filled at 11:25:02 at 2.83 per contract. The closing price was 3.625 mark for a ROI of $3,975 or +29%.

SPX white candle, bull flag bounce
INDU white candle, bull flag bounce
COMPQ black spinning top, higher high and higher low
RUT black spinning top, higher high and higher low

Breadth weakened on Tuesday and turned negative as decliners led advancers 3.18 to 1 on the NYSE and 3.24 to 1 on the NASDAQ …

Exchange      NYSE     NASDAQ
Advancers        728           630
Decliners       2,316        2,045

Index      Chg.      Close      Direction      Confirmation
VIX         +2.66       21.01            Up                 Yes – SPX
SOX        -8.84     449.78           Down            Yes – COMPQ

Leading stocks > +2% on Tuesday included UCO, FAZ, SLW, MCP

Losing stocks < -2.0% included LCC, LVS, TIE, FAS, URE, ARUN, AIV, DECK, AKS, GLW, NVDA, CIEN, X, VLO, UAL, ATI, SWN, UNG, PCX, HLF, SNDK, WLT, A, SWKS, CREE, SKX, NDAQ, CRM, CF, CAT, UNP, ESI, WHR, DOW, SPG, PCP, HUM, BA, CLF, F, STI, BAC, FCX, LDK, FDX, VMW, CAM, VECO, DHR, NETL, ZION, RVBD, PNC, HANS, CSTR, SLB, TIF, LXK, AMD, JNPR

Positives – Euro

Negatives – SPX, VIX, INDU, COMPQ, RUT, AAPL, AMZN, BIDU, GOOG, QCOM, breadth weakened, sectors weakened

Upward momentum collapsed on Tuesday as selling pressure increased after opening higher on overnight futures trading. A review of the large number of stocks losing more than 2% reveals the breadth of the selling pressure.

Interest rates closed unchanged on Tuesday and bond ETF TLT was down 3 cents. The Euro closed down 30 pips to 1.3775 at 5 pm ET.

All nine sectors fell on Tuesday with Materials XLB -2.46% and Financials XLF -2.14% the weakest sectors.


SPX
Resistance: 1,311, 1,321, 1,330
Support: 1,300, 1,281, 1,271

The short term 3 day trend is neutral.
The six-month trend is up.
The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

AAPL -3.90 – bearish engulfing, lower high
AMZN -3.85 – large black candle
NFLX -2.04 – black hammer at earnings gap support
QCOM -1.54 – bearish engulfing from new high
GOOG -12.64 – bearish engulfing at horizontal support
BIDU -3.33 – black candle from lower high

NDX 100 stocks stronger than the NDX include BIIB, WYNN, AMGN, CERN, RIMM, GENZ, CSCO and FSLR

Stocks weaker than the NDX include NVDA, FFIV, ILMN, ORCL, SNDK, EBAY, SYMC,WFMI, STX, NIHD, VMED, CTSH, SRCL, MXIM and BIDU

Stocks to Watch on Wednesday
Holding Above 30 DMA
NDAQ, VLO, CLF, JDSU, CRUS, GLW, NYX, URE, DISH, DLR, HUM, NTES, CAM, SLB, SPG, CAT, NETL, SOHU, ATW, SWK, ICE, JNPR, AMD, DHR, ARUN, CIEN, HSY, DECK, GMCR, GES, RVBD, SLW, ESI, HLF, TLT, MOS, SWKS, AGU, HANS, IPI, POT
Moving Above 30 DMA = 2
FAZ, MCP
Moving Below 30 DMA = 16
AIV, AKS, ATI, BA, CF, CMG, DOW, FAS, GES, HAS, SMH, SWN, TIF, UNP, V, VECO
Staying Below 30 DMA
ACN, CRM, CSTR, LDK, MA, SNDK, STI, TSL, TIE, A, BAC, DE, FDX, FWLT, GS, JEC, LVS, LXK, MHS, NVDA, PCP, PNC, TBT, UAL, X, PCX, SINA, SKX, WLT, ZION, VMW, UNG, WHR, F, LCC, CHL, FCX, CREE, GME, UCO

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

Futures Point to a Higher Open...

BMO – ES +5.00 and NQ +10.00 futures are higher about 15 minutes before the open in pre-market trading and point to a higher open…

TLT is down -1.00 and the Euro is up 16 pips in premarket trading and is nearing horizontal resistance …

NDX leaders AAPL, AMZN, GOOG, NFLX and PCLN are higher in pre-market trading…BIDU is lower…

Dave’s Insight for Tuesday: Trade with the trend, follow your rules, exit at your targets, look for re-entry…

SPX
Resistance: 1,330, 1,338
Support: 1,321, 1,311, 1,300

Quoting Down – LVS, TLT, CMG, ICE, SWN, JEC, AGU, CAM, BIDU, WFMI, DTV, SIAL, INTU, SHLD, CTSH, TEVA

Quoting Up – WLT, SLW, UCO, DE, MA, SLB, VECO, POT, CRM, TBT, CHL, CSTR, MOS, DECK, V, SWKS, JNPR, CAT, MCP, MHS, SINA, FDX, DOW, CLF, X, SMH, URE, STI, PCLN, INFY, AAPL, EXPD, FFIV, NIHD, AMZN, NFLX, FSLR, ORLY, MICC, NTAP, VOD, AKAM, JOYG