SPX Rises...Closes Slightly Lower...

Memorial Day Weekend - Thank you to all who have served our Great Country! DJIA - 14.81, -0.18% SP500 - 1.33, -0.15% NASDAQ Comp. - 3.24, -0.19% Russell 2000 - 3.60, -0.75% Exchange NYSE NASD Advancing 1,975 1,220 Declining 1,686 1,473 Oil $61.67 +$0.62 Gold $958.90 +$7.70 SOX 250.46 +0.06 VIX 32.63 +1.28 The VIX moved up and did confirm the move down in the SPX on Friday. Strongest Sectors: XLY +1.07%...XLU +0.82%...XLP +0.61% Weakest Sectors: XLF -0.68%...XLB -0.38%...XLI -0.37% Consumer Discretionary, Utilities, Consumer Staples, Technology, Healthcare and Energy were stronger than the SPX -0.15%. XLF was the weakest sector but down only -0.68%. Financial stocks stronger than XLF: CME, ICE, TRV, NTRS, TROW, CB, AFL, IVZ, SCHW, MS, ALL, PNC and GS. Leading tech stocks stronger than XLK -1.75% include: TXN, ADBE, GLW, EBAY, ADP, YHOO, AMT and ORCL. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK Sideways: XLY, XLE, XLV, XLF, XLP, XLI Down Trending: XLU SPX Key resistance levels: 902 = Weekly R1 924 = horizontal 936 = 200 DMA Key support levels: 891 = 38.2% Fib level 875 = horizontal 866 = 61.8% Fib level Stock prices traded in a narrow trading price range on light volume on Friday heading into the three day Memorial Day weekend. The SPX which spent most of the day slightly higher sold off in the last hour of the day in a similar manner as on Tuesday and Wednesday. The SPX finished up just one point from Monday’s open even though it rose 27 points on Monday. The SPX closed above Thursday’s low and about 12 points above horizontal support in the 875 area. Watch the SPX closely on Monday for a potential support break. The SPX is near support. The trend indicates to look for bullish trades. Keep in mind that support is a pivot point where if broken you should be prepared for price to fall to the next support level. Oil and gold prices rose on Friday in part due to a falling dollar. Gold stocks GDX, GLD, NEM, AEM, GOLD and GG all moved higher. Steel stocks were mixed with ATI and STLD moving higher and SCHN, X and AKS moved slightly lower on Friday. Index Commentary The DJIA formed a black inverted hammer inside … three month chart target 10,340…volume was a light at 244 million shares…closed just below its 20 DMA and above its 30 and 50 DMA. The SPX formed a black inverted hammer closing below it 20 DMA and 38.2% Fib level…3 month chart target of 1,075…closed 30 and 50 DMA. The Nasdaq formed a black spinning top inside day…3 month chart target of 2,065…closed below its 20, 30 and 200 DMA and above its 50 DMA. The RUT formed a black spinning top inside day…closed below its 30 DMA….3 month chart target 606…closed above its 50 DMA At the Open on Friday SPY – black spinning top -0.21% KOL – black spinning top +2.21% SHLD – earnings gap +10.38% ADBE – white candle +1.57% STLD – white spinning top +4.76% CTV – large white candle +14.32% EBAY – piercing line +1.22% EL – bullish harami +1.12% JOYG – bullish harami +0.07% USD – black spinning top -0.48% JNPR – white shooting star -0.51% SCHN – inverted hammer -0.56% NFLX – black candle inside day -0.79% STT – white spinning top -0.99% FAS – black candle -3.09% URE – black candle -5.34% ZION – black candle -3.12% OSG – black candle -3.01% WYNN – black candle at horizontal support -3.40% Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, VPRT, CTSH, BAP, CAM, GMCR, ATW, GR, EBAY, TRLG, FSLR, HDB, PCP, RIMM, WCG, UYG, HLF, AMX, MHS, K, PCLN, VAR, PCR, PPD, SWN, FLS, TDG, NIHD, RCI, STRA, ACN, JOYG, MON, MUR, PSYS, CHL, MOS, DV, AXYS, BIIB, BYI, CPLA, SPWRA, SYNA, X, MCD, BDX Moving Above 30 DMA = 2 APEI, CBST Moving Below 30 DMA = 4 AFAM, DLB, ESI, FAS Staying Below 30 DMA AAPL, ESRX, HANS, RBN, USD, WAB, URE, NTLS, JOSB, AMED, PETS, GES, WRC, SNA, SNHY, WMT, AMZN, EZPW, GXDX, JW.A, JEC, PWR, DLTR, DECK, ORCL, ALGT, JCOM, NFLX, GME, GILD, GPRO, MYGN, SLGN, BKC, BLUD Intermediate Term Market Trend: Neutral Short Term Market Trend: Down