Trading Range at Resistance...

DJIA - 34.01, -0.40% SP500 - 1.36, -0.15% NASDAQ Comp. + 8.68, +0.47% Russell 2000 + 4.04, +0.79% Exchange NYSE NASD Advancing 1,821 1,743 Declining 1,172 956 Oil $69.16 -$1.07 Gold $940.70 +$1.70 SOX 263.05 -0.21 VIX 25.93 -1.63 The VIX moved down and did not confirm the move down in the SPX on Friday. This is the lowest close on the VIX since September 12, 2008. Strongest Sectors: XLF +0.51%...XLV +0.00%...XLB -0.15% Weakest Sectors: XLY -0.69%...XLE -0.66%...XLI -0.41% Only one of nine sectors moved higher on Friday. Financials and Healtcare were stronger than the SPX -0.15%. Financial stocks stronger than XLF +0.51%: IVZ, BAC, MS, ICE, STT, GS, USB, KEY, JPM, SPG, CME and ETFs UYG and FAS. Tech stocks stronger than XLK -0.16%: MA, GOOG, AAPL, GLW, YHOO, EBAY, TXN, SYMC, ADP, DELL, EMC, T and INTC. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 920 - 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 910 = Thursday’s S1 902 = 50 DMA 894 = 200 DMA 888 = weekly low 875 = horizontal Friday is yet another mixed trading day as the indices are grinding at resistance. The SPX traded in a narrow 9 point range on Friday forming a doji following Thursday’s large white candle. Friday represents a pause in the upward momentum which could lead to a short term reversal if Friday’s low is broken. Nasdaq momentum slowed as price formed a new high in its recent short term up trend. Many individual stocks like FUQI, TRLG, GXDX, SNHY, DECK, X, BIDU, AMX and AMZN have a strong day, but the indices just lack upward momentum. The SPX, Nasdaq and RUT all made a higher highs while the DJIA made a lower high. The relative weakness in momentum makes Monday a Yellow Alert for short term trades. Positives: Nasdaq moves higher VIX moves to new low Negatives: SOX fails to confirm SPX and DJIA move down SPX, DJIA and RUT at resistance and form bearish candle patterns Bottom Line: If the indices break the low of the high day on Monday look for a move back to the support levels of the sideways trading range in place for the past two months. For the Week... (click image to enlarge) Here's a Weekly view of the past 3 months... (click image to enlarge) Index Commentary – Yellow Alert The DJIA moved formed a bearish harami…three month chart target 10,340…volume was an above average 307 million shares…closed below its 20, 30 and 200 DMA. The SPX formed a doji following Thursday’s large white candle and closed just above its 30 DMA…Friday is a high day…3 month chart target of 1,075…closed above its 30, 50 and 200 DMA. The Nasdaq formed a white candle that is a short term high…3 month chart target of 2,065…closed above its 20, 30, 50 and 200 DMA. The RUT formed a white candle that sold off slightly at its 20 DMA…3 month chart target 606…closed above its 30, 50 and 200 DMA. At the Open on Friday SPY – doji -0.26% QQQQ – white spinning top +0.22% FUQI – above 20 DMA +7.22% DECK – white candle horizontal breakout +2.78% X – white candle continuation +2.64% AMX – large white candle continuation +2.06% AMZN – white candle continuation +2.04% ICE – white candle continuation +1.98% FAS – white candle continuation +1.92% AAPL – white candle +1.84% STT – white candle at horizontal resistance +1.79% PCLN – white spinning top +1.05% SPG – white spinning top +0.76% QCOM – bearish harami at horizontal resistance -0.32% JOYG – hanging man -0.46% MUR – bearish harami -0.96% SHLD – black spinning top -0.98% ESRX – bearish harami -1.18% GMCR – shooting star -1.41% MRVL – bearish harami -1.67% Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA BIDU, VPRT, BAP, GR, K, DV, CPLA, SYNA, X, BDX, AAPL, GXDX, ORCL, DECK, CPLA, MYGN, DV, STRA, GILD, JW.A, ACN, APEI, PSYS, ESRX, NFLX, BYI, JOYG, MHS, NTLS, BKC, CBST, HDB, ICE, PCLN, SLGN, USD, AMED, AMX, CHL, CTSH, ESI, GES, GPRO, HLF, JCOM, PPD, WRC, NIHD Moving Above 30 DMA = 4 BAP, PETS, WCG, SNHY Moving Below 30 DMA = 5 BLUD, GMCR, JEC, PWR, RBN Staying Below 30 DMA FAZ, AFAM, AMZN, ATW, BIIB, FLS, VAR, MCD, PCP, SWN, MUR, RIMM, SPWRA, CAM, CLB, MOS, EBAY, FAS, MON, RCI, SNA, TDG, TRLG, URE, UYG, DLTR, EZPW, WAB, FSLR, WMT, DLB, JOSB, HANS, ALGT, GME Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral