11:30 am EDT - The SPX is range bound as breadth is weak again.  Financials XLF is flat and the Euro is down 113 pips.

As always follow your rules today...

Will post after the close...

Selling Pressure Slows as SPX Forms Inverted Hammer...

SPX

I inserted a submit after a set time condition before the open on Monday night’s put trade on RVBD after trading up as much as a dollar in the pre-market. The price did fade after the open and then recovered which is typical for a gap open all before the time submit order. When RVBD was back in the positive I canceled the order. I would be willing to enter a new bearish trade if the current rally fails.


SPX inverted hammer, below 30 DMA -0.10%
INDU inverted hammer, below 30 DMA -0.16%
COMPQ spinning top, below 30 DMA -0.04%
RUT bullish harami, below 30 DMA +0.28%

Breadth strengthened as advancers led decliners 1.29 to 1 on the NYSE and 1.27 to 1 on the NASDAQ …

Exchange     NYSE     NASDAQ
Advancers    1,695        1,450
Decliners       1,308        1,139

Index     Chg.      Close      Direction      Confirmation
VIX        -0.42        18.07        Down            No – SPX
SOX     +2.30      415.34        Up                  No – COMPQ

Leading stocks > +2% on Tuesday included SWKS, LDK, FFIV, JNPR, NTES, TSL, JDSU, URE, ARUN, V, DLR

Losing stocks < -2.0% included IL, WTW, SOHU, GMCR

Bull Flag Entry on Tuesday: FFIV, V

Bull Flag Setups for Wednesday: TIF, COH, CY, VECO, GMCR, KKD, CMG, CF, IFNA, CRM, MA GES, NVDA, POT, AGU, CHL, HLF, HUM, CROX, WTW, OTEX, NFLX

SPX
Resistance: 1,300, 1,310, 1,321
Support: 1,288, 1,278, 1,267

The short term 3 day trend is down.
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 -6.00 – large black candle, below 30 DMA
AMZN +1.86 – inverted hammer bullish harami, below 30 DMA
BIDU -2.15 – spinning top, below 30 DMA
GOOG -2.03 – black candle, below 30 DMA
NFLX +1.10 – spinning top, above 30 DMA
PCLN +3.25 – spinning top, below 30 DMA
QCOM +0.03 – inverted hammer, below 30 DMA

NDX 100 stocks stronger than the NDX include FFIV, WCRX, DLTR, WFM, FISV, BBBY, SYMC, INFY, CELG, LRCX, KLAC, ALTR, URBN and XLNX.

Stocks weaker than the NDX include WYNN, CSCO, RIMM, GMCR, ERTS, ADSK, AAPL, BIDU, NWSA, AKAM, FLIR, ATVI, ORCL and MU.

Stocks to Watch on Wednesday
Holding Above 30 DMA
HLF, DLR, TIF, TLT, CY, FFIV, VECO, GMCR, KKD, FAZ, CMG, CF, INFA, CRM, IAG, UNG, ESI, SWN
Moving Above 30 DMA = 1
V
Moving Below 30 DMA = 1
COH
Staying Below 30 DMA
AGU, ATW, CHL, CREE, HUM, POT, RVBD, SLB, VMW, ACN, ANF, GES, NGLS, NVDA, SINA, UNP, ANR, TPX, WTW, A, AKS, CLF, CRUS, CSTR, DECK, DHR, ENTR, FCX, FWLT, ICE, SMH, SNDK, STI, URE, ZION, UAL, MHS, HAS, JDSU, JNPR, SWK, ARUN, GLW, ATI, CIEN, DOW, F, CAT, IL, NDAQ, SWKS, WDC, MCP, WLT, FAS, LVS, SOHU, UCO, DE, NETL, PCX, LDK, TSL, NTES, SLW, GS, CDE, TBT, MOS, X, CAM, BAC

Intermediate Term Market Trend: Neutral
Short Term Market Trend: Down

Bull Flags Bouncing in Pre-Market...Futures Point to Higher Open...

BMO – ES +7.25 and NQ +9.25 futures are higher about 30 minutes before the open in pre-market trading and point to a higher open on Tuesday… volume is light for pre-market with more stocks quoting up than down…Financial stocks, XLF is quoting up 10 cents on 151,400 volume in pre-market…

RVBD +1.00 our real time bearish virtual trade from Monday night’s live trading room IF it traded below 35.55 is quoting up in pre-market at 36.52…we will NOT enter this trade unless prices turn down and begin to break support.

Watch for these bull flag support bounce entries that we have listed the past two trading days, see some of their charts in our Friday and Monday post…

Bull Flag Setups for Tuesday: TIF, COH, CY, FFIV, VECO, GMCR, KKD, CMG, CF, IFNA, CRM, V, MA GES, NVDA, POT, AGU, CHL, HLF, HUM, CROX, WTW, OTEX, NFLX

INFY +1.24 the only NDX 100 stock to move and close above its 30 DMA on Monday is trading up in pre-market

TLT is down 16 cents and the Euro is up 85 pips in premarket trading …

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

Dave’s Insight for Tuesday:  The SPX closed at its 1,286 support level and below the lower end of its diagonal price channel of the past five weeks is bouncing in pre-market trading…On Friday the chart suggested a support bounce this week, but broke support on Monday…is the support bounce just a day late…watch for that one to three day support bounce back into the channel that I spoke about on Friday…Continue to follow your rules…Watch XLF as a key factor whether the bounce continues or a reversal occurs…Manage your trades based on the price action you see on the chart you are trading…

SPX

Resistance: 1,300, 1,310, 1,321

Support: 1,288, 1,278, 1,267

Quoting Down – CLF, FAZ, NTES, UCO, GMCR, ACN, CTXS, CA, ADSK, JOYG

Quoting Up – SINA, TIF,, CF, WLT, MCP, CMG, RVBD, GS, SWKS, SNDK, CAT, SOHU, COH, JNPR, FAS, AGU, DE, MOS, FCX, X, WDC, SLW, TSL, HUM, POT, LVS, PCX, ANF, NFLX, GOOG, WYNN, INFY, SNDK, AAPL, EXPE, AMZN, GILD, XLNX, WCRX, QCOM, EXPD, CHKP, VOD, TEVA

SPX Breaks 1,300 Falls to 1,286 Support as Financials Slump Further...

The SPX broke its 1,300 support and fell to the 1,288 support level closing down -13.99 at 1,286.17.  Many stocks gave bearish entry signals with a bounce down from resistance or a break of support.  NFLX pulled back after a 45 point rise over the past three weeks.

(click image to enlarge)

SPX large black candle, close below 30 DMA -1.08%

INDU black candle, below 30 DMA -0.50%

COMPQ large black candle, below 30 DMA -1.11%

RUT large black candle, below 30 DMA -1.59%

Breadth weakened as decliners led advancers 3.90 to 1 on the NYSE and strengthened slightly as decliners led advancers  3.40 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         618               597

Decliners        2,415            2,031

Index              Chg.    Close    Direction    Confirmation

VIX                 +0.54     18.49     Up              Yes – SPX

SOX               -3.18    415.34     Down         Yes – COMPQ

Leading stocks > +2% on Monday included FAZ

Losing stocks < -2.0% included NTES, MCP, SOHU, FAS, SLW, ESI, RVBD, BAC, LVS, AKS, CREE, ARUN, DECK, CSTR, TPX, MOS, UAL, UCO, CAM, ZION, ATW, JDSU, FWLT, CIEN, ANR, WTW, WLT, ANF, URE, JNPR, NDAQ, CRUS, AGU, FFIV, SLB, SNDK, CF, IL, NVDA, POT, NGLS, CMG

Positives – TLT, VIX, Gold, Silver

Negatives – SPX, INDU, RUT, COMPQ, NDX, breadth weakened, XLE, XLF, AAPL, AMZN, BIDU, NFLX

All nine sectors moved lower on Monday.  Utilities XLU -0.45% and Consumer Staples XLP -0.51% were the strongest sectors.  Energy XLE -2.26% was the weakest sector.

Bond ETF TLT moved down 73 cents.  The Euro moved down 53 pips to 1.4578 at 5 pm on Monday.  Financials XLF -1.91% moved down 29 cents.

Bull Flag Setups for Tuesday: TIF, COH, CY, FFIV, VECO, GMCR, KKD, CMG, CF, IFNA, CRM, V, MA GES, NVDA, POT, AGU, CHL, HLF, HUM, CROX, WTW, OTEX, NFLX

(click image to enlarge)

SPX

Resistance: 1,300, 1,310, 1,321

Support: 1,288, 1,278, 1,267

The short term 3 day trend is down.

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 -5.40 – bearish engulfing, below 30 DMA

AMZN -2.63 – black candle, below 30 DMA

BIDU -6.24 – large black candle confirm bearish harami, below 30 DMA

GOOG -2.02 – spinning top, below 30 DMA

NFLX -11.11 – gap open bearish engulfing, above 30 DMA

PCLN -4.93 – spinning top, below 30 DMA

QCOM -0.56 – inverted hammer, close below 30 DMA

NDX 100 stocks stronger than the NDX include DELL, SBUX, JOYG, INFY, LIFE, CERN, PCAR, CTSH, INTC, MSFT, MCHP, MAT, FISV and XLNX.

Stocks weaker than the NDX include CTRP, BIDU, NFLX, WCRX, AKAM, NTAP, APOL, DTV, EXPE, EBAY, FFIV, SPLS, SNDK, EXPD and NVDA.

Stocks to Watch on Tuesday

Holding Above 30 DMA

HLF, DLR, TIF, COH, TLT, CY, FFIV, VECO, GMCR, KKD, FAZ, CMG, CF, INFA, CRM, IAG, UNG, ESI, SWN

Moving Above 30 DMA = 0

Moving Below 30 DMA = 10

AGU, ATW, CHL, CREE, HUM, POT, RVBD, SLB, V, VMW

Staying Below 30 DMA

ACN, ANF, GES, NGLS, NVDA, SINA, UNP, ANR, TPX, WTW, A, AKS, CLF, CRUS, CSTR, DECK, DHR, ENTR, FCX, FWLT, ICE, SMH, SNDK, STI, URE, ZION, UAL, MHS, HAS, JDSU, JNPR, SWK, ARUN, GLW, ATI, CIEN,  DOW, F, CAT, IL, NDAQ, SWKS, WDC, MCP, WLT, FAS, LVS, SOHU, UCO, DE, NETL, PCX, LDK, TSL, NTES, SLW, GS, CDE, TBT, MOS, X, CAM, BAC

Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down

Futures are Mixed and Point to a Flat to Slightly Lower Open...

2:15 pm EDT - NFLX finally pulls back after forming an open gap bearish engulfing pattern on Monday...Financials XLF -0.22 are slammed again and SPY continues lower...Decliners are still leading advancers as bearish entry signals rule the day...



BMO – ES -0.75 and NQ +0.50 futures are mixed about 20 minutes before the open in pre-market trading and point to a flat to slightly lower open on Monday… volume is light for pre-market with a similar number of stocks quoting down and up…Financial stocks, XLF is quoting down 5 cents on 15,400 volume in pre-market…

TLT is down 67 cents and the Euro is down 21 pips in premarket trading …

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

Dave’s Insight for Monday:  The SPX is at its 1,300 support level and the lower end of its diagonal price channel of the past five weeks…the SPY formed an inverted hammer on Friday…The five week trend suggests a support bounce this week, but traders must stay prepared for a break of support…Continue to follow your rules…Watch XLF as a key factor whether the sell off continues or a bounce occurs…Manage your trades based on the price action you see on the chart you are trading…

SPX

Resistance: 1,310, 1,321, 1,330

Support: 1,300, 1,288, 1,278

Quoting Down – NETL, TLT, UCO, ICE, CAT, WLT, CMG, CRM, AGU, GS, FAS, LVX, DE, WYNN, NFLX, PCLN, FSLR, KLAC, MCPH, STX

Quoting Up – SINA, MCP, SOHU, TBT, FAZ, FCX, AAPL, BIDU, GOOG, INTU, JOYG, GRMN, SBUX, AMZN

SPX Falls to 1,300 Support...

The SP futures sold off before the open on Friday after a lower than expected 54,000 new jobs created in May report was released at 8:30 am EDT.  The SPY low was formed in the first five minutes and the SPY rallied from to above Thursday’s low before selling off going into the close.  The SPY formed an inverted hammer, which is a bullish candle.  Look for confirmation on Monday. 

The SPX closed down -12.78 at 1,300.76 a horizontal support level.  The broad indexes are at support.  If price breaks support it will most likely fall to the next support  level.  If support holds the charts suggest a support bounce move to resistance or other price targets.

(click image to enlarge)

SPX black candle, close below 30 DMA -0.97%

INDU black candle, below 30 DMA -0.79%

COMPQinverted hammer, below 30 DMA -1.46%

RUT large black candle, below 30 DMA -1.53%

Breadth weakened as decliners led advancers 2.52 to 1 on the NYSE and  3.65 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         862               566

Decliners        2,176            2,070

Index              Chg.    Close    Direction    Confirmation

VIX                 -0.14     17.95      Down           No – SPX

SOX               -7.90   418.52      Down           Yes – COMPQ

Leading stocks > +2% on Friday included SWN, FAZ

Losing stocks < -2.0% included SINA, SWKS, LDK, VECO, SOHU, JNPR, ATI, CIEN, TPX, CY, CSTR, NTES, NVDA, JDSU, MHS, HLF, CRUS, MCP, TSL, VMW, GES, SWK, HUM, RVBD, SNDK, DE, GLW, INFA, CRM, FAS, PCX, WLT, ANF, SMH, CREE, ENTR, ANR

Positives – TLT, VIX, Euro, XLE, XLF, NFLX, Gold, Silver

Negatives – TNX, SPX, INDU, RUT, COMPQ, NDX, breadth weakened, SOX, XLB, XLY, XLI, XLK, AMZN, BIDU, QCOM

Eight of nine sectors moved lower on Friday.  Energy XLE +0.03% and Financials XLF -0.65% were the strongest sectors.

Bull Flag Setups for Monday: ANF, TIF, COH, CY, FFIV, VECO, GMCR, KKD, CMG, CF, CREE, IFNA, CRM, V, MA GES, NVDA, POT, AGU, CHL

(click image to enlarge)

SPX

Resistance: 1,310, 1,321, 1,330

Support: 1,300, 1,288, 1,278

The short term 3 day trend is down.

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 -2.66 – spinning top, close below 30 DMA

AMZN -5.33 – black candle, below 30 DMA

BIDU -5.28 – bearish harami, just below 30 DMA

GOOG -4.98 – spinning top, just below 30 DMA

NFLX +2.00 – white candle, above 30 DMA

PCLN -4.98 – spinning top, below 30 DMA

QCOM -0.76 – spinning top, above 30 DMA

On Friday 16 NDX 100 stocks including AAPL, ILMN, NTAP, NVDA and WYNN closed below their 30 DMA, leaving just 20 stocks still above their 30 DMA.

NDX 100 stocks stronger than the NDX include VOD, NFLX, INFY, QGEN, VRTX, GENZ, CEPH, GMCR and VRSN.

Stocks weaker than the NDX include BIDU, MRVL, SPLS, RIMM, ALTR, XLNX, EBAY, NVDA, CTXS, ADBE, AMZN, MU, WFM and NTAP.

Stocks to Watch on Monday

Holding Above 30 DMA

HUM, HLF, DLR, TIF, COH, TLT, CY, FFIV, VECO, GMCR, KKD, RVBD, FAZ, CMG, VMW, CF, CREE, INFA, CRM, IAG, V, POT, AGU CHL, UNG, ESI

Moving Above 30 DMA = 3

ATW, SWN, SLB

Moving Below 30 DMA = 7

ACN, ANF, GES, NGLS, NVDA, SINA, UNP

Staying Below 30 DMA

ANR, TPX, WTW, A, AKS, CLF, CRUS, CSTR, DECK, DHR, ENTR, FCX, FWLT, ICE, SMH, SNDK, STI, URE, ZION, UAL, MHS, HAS, JDSU, JNPR, SWK, ARUN, GLW, ATI, CIEN,  DOW, F, CAT, IL, NDAQ, SWKS, WDC, MCP, WLT, FAS, LVS, SOHU, UCO, DE, NETL, PCX, LDK, TSL, NTES, SLW, GS, CDE, TBT, MOS, X, CAM, BAC

Intermediate Term Market Trend: Up

Short Term Market Trend: Down

SPX Holds at 1,310 Support, Forms Hammer...

Dave will be flying Friday morning and will post again Friday afternoon.  See you in the Weekly Wrap after the close...


The SPX returned to a more typical trading range as interest rates TNX rose +0.64 to 3.030%.  The May Jobs report will be released before the open on Friday.

SPX hammer, close below 30 DMA -0.12%
INDU hammer, below 30 DMA -0.34%
COMPQ doji bullish harami, below 30 DMA +0.15%
RUT spinning top, below 30 DMA -0.09%

Breadth strengthened as decliners led advancers 1.12 to 1 on the NYSE and advancers led decliners 1.01 to 1 on the NASDAQ …

Exchange      NYSE      NASDAQ
Advancers     1,421        1,292
Decliners       1,596        1,275

Index      Chg.     Close     Direction     Confirmation
VIX        -0.21       18.30        Down          Yes – SPX
SOX      +0.14     426.42        Up               Yes – COMPQ

Leading stocks > +2% on Wednesday included ESI, HLF, SINA, TBT, UNG, ARUN, SOHU

Losing stocks < -2.0% included ANR, WTW, GES, CDE, ENTR


The May Unemployment and Jobs reports will be out before the open on Friday. This typically creates some short term volatility. Watch short term support levels for a potential break.

If support holds these up trending bull flag setups could give an entry opportunity:  ANF, TIF, COH, CY, FFIV, VECO, GMCR, KKD, CMG, CF, CREE, INFA, CRM, V, GES, NVDA, POT, AGU, CHL

SPX
Resistance: 1,321, 1,330, 1,344
Support: 1,310, 1,300, 1,288


The short term 3 day trend is down.
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 +0.59 – spinning top, above 30 DMA
AMZN +1.25 – bullish harami, below 30 DMA
BIDU +6.02 – open gap bullish engulfing, just below 30 DMA
GOOG +2.46 – spinning top, just below 30 DMA
NFLX +4.44 – white candle, above 30 DMA
PCLN +5.72 – spinning top, below 30 DMA
QCOM +0.64 – bullish harami, above 30 DMA


NDX 100 stocks stronger than the NDX include APOL, JOYG, BIDU, VRTX, BIIB, EBAY, FFIV, NFLX, VRSN, CTRP, CTXS, AKAM, QCOM and PCLN.


Stocks weaker than the NDX include ESRX, INTU, MU, COST, WFMI, GRMN, SYMC, DLTR, PAYX, BBBY, CERN, MSFT, CSCO and ROST.


Stocks to Watch on Friday
Holding Above 30 DMA
HUM, HLF, ANF, DLR, TIF, COH, TLT, CY, FFIV, VECO, GMCR, KKD, RVBD, FAZ, ACN, CMG, VMW, CF, CREE, INFA, CRM, IAG, NGLS, V, GES, NVDA, POT, AGU CHL, UNG
Moving Above 30 DMA = 3
ESI, SINA, UNP
Moving Below 30 DMA = 3
ANR, TPX, WTW
Staying Below 30 DMA
A, AKS, ATW, CLF, CRUS, CSTR, DECK, DHR, ENTR, FCX, FWLT, ICE, SLB, SMH, SNDK, STI, SWN, URE, ZION, UAL, MHS, HAS, JDSU, JNPR, SWK, ARUN, GLW, ATI, CIEN, DOW, F, CAT, IL, NDAQ, SWKS, WDC, MCP, WLT, FAS, LVS, SOHU, UCO, DE, NETL, PCX, LDK, TSL, NTES, SLW, GS, CDE, TBT, MOS, X, CAM, BAC


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

Futures Point to a Flat to Higher Open...

Dave will be in Seattle with Tom Sosnoff and Don Kaufman at the TD Road Show this evening...See you there...

BMO – ES +2.25 and NQ +7.00 futures are flat to slightly higher about 70 minutes before the open in pre-market trading and point to a flat open on Thursday… volume is light for pre-market with a similar number of stocks quoting down and up…Financial stocks, XLF is quoting up 4 cents on 2,700 volume in pre-market…the May Jobs report comes on Friday…

ESI +15.89 and APOL +5.18 are gapping up in pre-market…

TLT is down 40 cents and the Euro is up 132 pips in premarket trading …

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

Dave’s Insight for Thursday:  The SPX is in consolidation after a strong sell off on Wednesday….key short term support levels include the mid-section of Tuesday’s SPX candle, the 30 DMA on the broad indexes and 133.84 on the SPY were broken yesterday…1,310 is the new support on the SPX…Continue to follow your rules…Watch XLF as a key factor whether the sell off continues…Manage your trades based on the price action you see on the chart you are trading…

SPX

Resistance: 1,321, 1,330, 1,344

Support: 1,310, 1,300, 1,288

Quoting Down – WLT, ANR, HLF, CMG, URE, TLT, FAZ, PCLN, EXPD

Quoting Up – ESI, APOL, JOYG, FSLR, GOOG, NFLX, CIEN, FWLT, CAT, HAS, DE, MCP, COH, SINA, DHR, GMCR, V, GS, HUM, TBT, RVBD, AAPL, BIDU, AMZN, COST

SPX Breakout Fails as Financials, Interest Rates Drop...

The SPX formed a bearish engulfing and closed -30.65 at 1,314.65 reversing Tuesday’s break out of the falling resistance line and falling back into its price channel or complex bull flag of the past four weeks. 

Interest rates dropped as the TNX -0.84 to 2.966%, closing at its lowest level since December 6, 2010.  Financials XLF -3.38% broke support in a classic bear flag break reaching its support and more in one day.

(click image to enlarge)

Bond ETF TLT moved up 95 cents.  The Euro moved down 66 pips to 1.4333 at 5 pm on Wednesday.

The SPX, INDU, COMPQ, NDX and RUT all broke and closed below their 30 DMA today, which confirms the strength of today’s downward momentum.

The SPY -2.25% formed an open gap bearish engulfing and broke below its falling support line of its four week complex bull flag and has a new price target of its old support at 131.

Wednesday’s action emphasizes what I constantly teach about technical analysis being based on probabilities and that it can only reflect what is known in the market up to the present.  It cannot see the future.  Clearly Tuesday’s net buying did NOT know interest rates and financials would collapse on Wednesday reversing Tuesday’s breakout and more.  If it did sellers would have had control on Tuesday.

This is also why I teach you to have stops and to honor entry and exit signals to protect you when the low probability occurs.  On many charts Wednesday’s action broke the low of the high and was a potential short-term exit on bullish trades and a potential short-term entry for bearish trades, depending entirely on a trader’s rules.

You may remember that AAPL real time virtual trade that I placed in a Monday night trading session on May 23.  The order was to buy 20 Jun 340 calls if AAPL rose above 336.98 for at limit of 6.70.  The order filled on May 25 at 5.55 per contract.  We also placed a market order to sell if AAPL reached 351.00, its prior consolidation area.  The target sell order filled today at 7:47:07 am MDT before AAPL reversed and closed at 345.51.  The 340 calls sold for 13.62, a gain of $8.07 or 145% in 7 trading days.  Total gain before commissions was $16,140 on an original investment of $11,100.    

(click image to enlarge)

SPX bearish engulfing, close below 30 DMA -2.28%

INDU bearish engulfing, close below 30 DMA -2.22%

COMPQ open gap bearish engulfing, close below 30 DMA -2.33%

RUT open gap bearish engulfing, close below 30 DMA -3.17%

Breadth collapsed as decliners led advancers 4.47 to 1 on the NYSE and 5.12 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         557               430

Decliners        2,495            2,202

Index              Chg.    Close    Direction    Confirmation

VIX                 +2.85     18.30      Up               Yes – SPX

SOX              -13.32   426.28      Down           Yes – COMPQ

Leading stocks > +2% on Wednesday included FAZ, ESI

Losing stocks < -2.0% included JNPR, FAS, LDK, STI, TSL, URE, MCP, ARUN, AKS, SNDK, JDSU, UCO, CIEN, X, SWK, CDE, F, NVDA, VECO, FCX, CAT, FWLT, ENTR, CRM, BAC, SWN, CREE, NDAQ, UNP, DE, DHR, WDC, A, CF, FFIV, ZION, CAM, SWKS, UAL, CRUS, ICE, POT, ATW, CY, GS, MOS, SMH, CLF, HLF, TPX, TIF, GMCR, ATI, SLB, DECK, AGU, DOW, TBT, KKD, IAG, PCX, ANR, GES, V, SLW, GLW, COH

Positives – TLT

Negatives – TNX, SPX, VIX, INDU, RUT, COMPQ, NDX, breadth and sectors weakened, XLF, SOX, AMZN, BIDU, QCOM and Euro

All nine sectors moved lower on Wednesday.  Consumer Staples XLP -1.02% and Utilities XLU -1.03% were the strongest sectors.

SPX

Resistance: 1,321, 1,330,1,344

Support:  1,310

The short term 3 day trend is down.

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 -2.32 – dark cloud cover, above 30 DMA

AMZN -4.29 – large black candle, close below 30 DMA

BIDU -3.24 – black candle, below 30 DMA

GOOG -3.42 – bearish harami, below 30 DMA

NFLX -3.54 – bearish harami, above 30 DMA

PCLN -8.13 – bearish harami, below 30 DMA

QCOM -1.43 – open gap bearish engulfing, above 30 DMA

NDX 100 stocks stronger than the NDX include APOL, ALXN, CHKP, ILMN, CTRP, ERTS, CEPH, GRMN and INFY.

Stocks weaker than the NDX include MU, RIMM, AMAT, SNDK, PCAR, FAST, NVDA, YHOO, KLAC, JOYG, ORCL, NWSA, SHLD, FFIV and FSLR.

Stocks to Watch on Thursday

Holding Above 30 DMA

HUM, TPX, HLF, ANF, DLR, TIF, COH, TLT, CY, FFIV, VECO, UAL, GMCR, KKD, RVBD, FAZ, ACN, CMG, VMW, CF, CREE, INFA, CRM, IAG, NGLS, V, GES, NVDA, POT, AGU ANR, CHL, UNG, WTW

Moving Above 30 DMA = 0

Moving Below 30 DMA = 20

A, AKS, ATW, CLF, CRUS, CSTR, DECK, DHR, ENTR, FCX, FWLT, ICE, SLB, SMH, SNDK, STI, SWN, UNP, URE, ZION

Staying Below 30 DMA

UAL, ESI, MHS, HAS, JDSU, JNPR, SWK, ARUN, GLW, ATI, CIEN,  DOW, F, CAT, IL, NDAQ, SWKS, WDC, MCP, SINA, WLT, FAS, LVS, SOHU, UCO, DE, NETL, PCX, LDK, TSL, NTES, SLW, GS, CDE, TBT, MOS, X, CAM, BAC

Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral

Futures Point to a Lower Open as Stocks Pause...

BMO – ES -5.75 and NQ -9.00 futures are lower about 25 minutes before the open in pre-market trading and point to a lower open on Wednesday ater rising for four straight days, which allows short term profit taking to be absorbed into the market… volume is moderate for pre-market with more stocks quoting down than up…Financial stocks, XLF is quoting down 7 cents on 193,300 volume in pre-market…

TLT is up 20 cents and the Euro is up 16 pips in premarket trading …

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

Dave’s Insight for Wednesday:  The SPX is pausing after four straight up days…this is typical….key short term support levels include the mid-section of Tuesday’s SPX candle, the 30 DMA on the broad indexes, broken diagonal resistance line of the past four weeks and 133.84 on the SPY…Continue to follow your rules…Watch XLF as a key factor whether the breakout continues…Manage your trades based on the price action you see on the chart you are trading…

SPX

Resistance: 1,344, 1,352, 1,367

Support: 1,330, 1,321, 1,310

Quoting Down – MICC, NFLX, GOOG, FFIV, TIF, CRM, MCP, CAT, HLF, DE, GS, CLF, ICE, SINA, RVBD, V, FCX, ANR, SNDK, MOS, POT, DECK, SLB, FAS, GMCR, TBT, UCO, AKS, AMZN, VOD, BIDU, FSLR, MCHP, RIMM, DLTR, CA, TEVA, QCOM

Quoting Up – FAZ, TLT, SRCL