Friday the 13th Good Luck - a Bullish Harami Confirmation

DJIA + 165.77, +1.37% SP500 + 20.16, +1.50% NASDAQ Comp. + 50.15, +2.09% Russell 2000 + 13.77, +1.91% Oil closed at $134.86 down $1.88 Friday was a strong rally day with advancers leading decliners by more than a two to one margin. On the NYSE advancers led decliners 2,271 to 852 and on the Nasdaq advancers led 2,081 to 821 decliners. The DJIA confirmed Thursday’s inverted hammer bullish harami on Friday. The DJIA is still trading below its 20, 30, 50 and 200 DMA. It is still in a four week down trend and two day short-term up trend. Watch the R1 and R2 resistance levels of the June 6 large black candle. The S&P also confirmed Thursday’s inverted hammer bullish harami on Friday. The S&P is trading below it 20, 20, 50 and 200 DMA and is in a four week down trend and two day short-term up trend. Watch the R1 and R2 levels of the June 6 large black candle. The Nasdaq confirmed its bullish harami pattern from Thursday with a breakout that closed above it 50 DMA, the double top support area established on May 23 and the January horizontal resistance area. Watch to see if this breakout holds. The Nasdaq has a relatively stronger chart pattern than either the DJIA or S&P. The Nasdaq is trading below its 20, 30 and 200 DMA. The Russell (RUT) also confirmed on Friday the inverted hammer bullish harami formed on Thursday with a breakout. The RUT closed above its 50 DMA and above the January horizontal resistance area and right at its 30 DMA. It is still trading below its 20 and 200 DMA. Watch the resistance areas of the 30, 20, 200 DMA and the January horizontal area that it closed above on Friday. AAPL one of the few stocks in our watchlist to close down on Friday, is in a short-term down trend and formed a hammer candle pattern on Friday. After a strong sell off it managed to close above the double top low made on May 22. If AAPL moves up on Monday it could form a morning star candle pattern. Even though oil was down on Friday energy related stocks were strong right along with most other stocks. XLE formed a bullish engulfing pattern on Friday. USO which was down was an exception to Friday’s strong move up and seems to be forming a horizontal bull flag. FSLR which has been trading well above its 200 DMA broke through both its 20 and 30 DMA on Friday and is just 2 points below it 50 DMA. FSLR traded 3.4 million shares which was below average volume. BIDU which was up on Friday is trading just above its 200 DMA for the fourth straight day. Watch this key pivot area for a bounce or break. BIDU traded 2.9 million shares which was below average volume. GS had a large support bounce on Friday on 14.3 million shares approximately 150% of average volume. It broke above the key 177.50 resistance area. If it holds above this area the chart measuring technique suggests a potential move to the next key resistance area of 192.50 during the next two weeks. MA closed on Friday above the high of the low day on 2.1 million shares, which is approximately half of average volume. Look at a similar bounce day on May 27 on similarly weak volume. This below average volume on May 27 support bounce did not keep MA from moving from 279 to 320 over the following four trading days on June 2. Of course, past price action does not guarantee future price action. Friday’s Action Moving Up: FSLR, GS, BIDU, MA, X, STRA, MOS, CF, DECK, MEE, SCHN, PCLN, CLF, CNX, SOHU, AGU, POT, RIMM, NUE, LEH, AMZN, FWLT, MS, DRYS, MON, IBM, NKE, IPI, V, MER, BTU, CELG, JASO Moving Down: USO, AAPL, GRMN Intermediate Term Market Trend: Down (DJIA, S&P) Short Term Market Trend: Up Watch for expanded stock commentary starting today and more intra-day posts!