Downward Momentum Stops, Stocks Bounce in Pullback

DJIA - 27.24, -0.31% SP500 + 3.08, +0.34% NASDAQ Comp. + 17.95, +1.12% Russell 2000 + 4.91, +0.99% Exchange NYSE NASD Advancing 2,300 1,702 Declining 1,487 1,087 Oil $41.70 -$0.93 Gold $853.90 +$12.80 SOX 222.54 -0.58 VIX 42.56 -1.91 The VIX moved down confirming the move up in the SPX on Thursday. Strongest Sectors: XLB +1.40%...XLE +1.29%...XLI +0.98% Weakest Sectors: XLP -1.31%...XLU -0.51%...XLF -0.42% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK, XLF Down Trending: Stocks indices found support buying near their 20 DMA today. The fact that the indices found buyers after just a one day pull back at or above key moving averages, which respresent a higher low, suggests big money sees this market going higher. Watch for confirmation of today's bullish patterns on the indices on Friday. Index Commentary The DJIA formed a hammer after a one day pull back…bounced off and closed above its 20, 30 and 50 DMA. The SPX formed a hammer…bounced off its 20 DMA and closed above its 20, 30 and 50 DMA. The Nasdaq formed a piercing line pattern after a one day pullback…closed above its Dec 9 resistance high and it 20, 30 and 50 DMA. The RUT formed small white spinning top after a one day pull back…closed above its Dec 19 resistance high and it 20, 30 and 50 DMA. Stocks to Watch on Friday Leading Stocks: Holding Above 30 DMA AYE…PCLN…BAP…FLR…JEC…PCR…ATK…RTN…SNA…WMS…HAS…JOSB…AMZN…BIIB…BYI…HDB…LFC…FWLT…MTW…QSII…VMI…OI…FLS…BCO…MOS…ROST…AET…POT…UTX…APH…CAM…CCC…CIR…CL…DECK…EPR…ESI…GES…GILD…JW.A…MYGN…ACL…DNA…HLF…OSIP…AGN…KEX…LAYN…RCI…NEU…RIO…SHW…AMED…PETS…SOHU…BCR…CAM…FLIR…NGS…NOV…SPN…CTSH…FSTR…IIVI…K…NIHD…PCP…SWN…AMX…HP…ADBE…AME…ATW…GME…MBT…MON…NE…RIMM…AFAM…LNN…RIG… ICLR…SYNA…CBST…DLTR Moving Above 30 DMA = 4 AAPL…BLUD…MMM…VIP Moving Below 30 DMA = 4 CERN…JCOM…MCRS…NDAQ Staying Below 30 DMA GIS…PTNR…AXYS…URBN…MTD…SINA…PRGO…PPD…ESRX…STRA… CHTT…DV…IRIS…ISRG…SPTN…CELG…ENDP…TECH…TEVA…ANSS…CHU…EZPW…NILE…PSSI…PSYS…VIVO…WAB Thursday’s Action Moving Up: FSLR, STRA, AEM, DRYS, SCHN, PCLN, GDX, ANR, MOS, FWLT, BTU, X, CNX, CF, NIHD, PNRA, NUE, ONXX, MS, MA, UAUA, GS, POT, MEE Moving Down: MON, AFAM, NDAQ, AGU, SINA, LAMR Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Neutral