Stocks Pull Back and Bounce Again

DJIA - 105.30, -1.28% SP500 - 12.74, -1.52% NASDAQ Comp. - 41.58, -2.76% Russell 2000 - 13.91, -3.05% Exchange NYSE NASD Advancing 930 696 Declining 2,835 2,070 Oil $43.67 +$0.12 Gold $858.80 +$8.70 SOX 199.99 -5.19 VIX 47.29 +0.87 The VIX moved up confirming the move down in the SPX on Thursday. Strongest Sectors: XLV +0.42%...XLU -0.03%...XLP -0.09% Weakest Sectors: XLF -6.15%...XLE -2.74%...XLK -2.26% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK, XLF Down Trending: Indices fell near Wednesday’s lows and bounced creating an inside day o the DJIA, SPX, Nasdaq and RUT. Weakness in financial stocks again contributed to the drop in stocks. BAC, C and MSFT contributed to the drop in the DJIA. Weakness in ADBE, EBAY, JOYG and MSFT contributed to the weakness in the NDX. AAPL rose 6.68% on Thursday after earnings reported after the close on Wednesday beat estimates. Airline stocks LUV, UAUA, DAL, LCC and ALK also moved higher. IBM retraced a portion of yesterday's gain to the S1 level of Wednesday's large white candle.

POT formed a bullish engulfing pattern after earnings beat estimates.

The 7,900 support area on the DJIA continues to hold. Earnings Thursday, Jan 22 BAX +0.91 beat +0.89 estimate CIT -0.54 below -0.48 est. CY -0.08 inline -0.08 est. IBKR +0.49 below +0.53 IGT +0.29 beat +0.27 est. ESI +1.61 beat +1.44 est. KEY – 1.13 below -0.02 est. NITE +0.56 beat +0.38 est. LMT +2.05 beat +1.92 est. MSFT +0.47 below +0.49 est. POT +2.56 beat +2.28 est. SHW +0.50 below +0.53 est. LUV +0.08 beat +0.05 est. STI -1.08 below +0.07 est. UNP +1.31 beat +1.23 est. UNH +0.78 inline +0.78 est. AMD -0.68 below -0.54 est. COF -1.59 below +0.33 est. CBST +0.71 beat + 0.52 est. EZPW +0.35 beat +0.34 est. GOOG +5.10 beat +4.95 est. ISRG +1.27 inline +1.27 est. SYNA +0.84 beat +0.62 est. Friday: GE, HOG, MBFI, SLB, XRX Stocks to Watch on Friday Leading Stocks: Holding Above 30 DMA JOSB…BIIB…BCO…ROST…ESI…JW.A…MYGN…AGN…AMED…BCR…MON…RIMM…ICLR…SYNA…BLUD…RTN…AME…APH…DLTR…DV…STRA…AYE…GIS…K…PCP…AET…ATK…CCC…GES…GILD…GME…HP…IIVI…NE…RIO…SWN…TEVA…URBN Moving Above 30 DMA = 1 POT Moving Below 30 DMA = 9 CAM…CERN…CTSH…DNA…FLIR…HLF…LAYN…MTD…QSII Staying Below 30 DMA AXYS…SINA…PRGO…PPD…ESRX…SPTN…ISRG…IRIS…CHTT…ENDP…CELG…WAB…VIVO…PSYS…PSSI…NILE…EZPW…CHU…ANSS…NDAQ…MCRS…JCOM…VIP…SOHU…RCI…NEU…MTW…MMM…LFC…HAS…FSTR…EPR…AFAM…AAPL…WMS…VMILLLSNA…MBT…FLR…DECK…CBST…AMX…ADBE…RIG…OI…NOV…LNN…HDB…FWLT…FLS…CL…BYI…ATW…AMZN…ACL…WCG…NGS…BAP…VAR…UTX…TECH…SPN…SHW…PETS…PCR…PCLN…OSIP…NIHD…MOS…MOS…KEX…JEC…CIR Thursday’s Action Moving Up: STRA, POT, GS, PNRA, IPI, ESRX, MS Moving Down: DRYS, FSLR, MA, EBAY, KRE, NUE, INFY, ZION, CF, X, FWLT, MEE, BTU, CNX, KMT, SOHU, KBE, ANR, RF Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Neutral