SPX Holds Support...

The SPX held the 870 - 875 support area on Friday as large cap Nasdaq stocks AAPL, GOOG, CSCO, ORCL, INTC, QCOM, RIMM, EBAY, CTSH and BIDU moved higher. (click image to enlarge) Nasdaq 100 stock INFY traded more than double average volume after a positive earnings report Thursday evening. INFY gained +4.23% on 135% volume increase. FAST which has their earnings conference call Monday morning, gained +3.56% on a 106% volume increase. (click image to enlarge) DJIA - 36.65, -0.45% SP500 - 3.55, -0.40% NASDAQ Comp. + 3.48, +0.20% Russell 2000 + 1.71, +0.36% Exchange NYSE NASD Advancing 1,435 1,403 Declining 1,529 1,220 Oil $59.89 -$0.52 Gold $912.50 -$3.70 SOX 259.04 +1.09 VIX 29.02 -0.76 The VIX moved down and did NOT confirm the move down in the SPX on Friday. Strongest Sectors: XLK +0.40%...XLU -0.11%...XLI -0.14% Weakest Sectors: XLF -1.33%...XLE -0.71%...XLB -0.57% Eight of nine sectors moved lower on Friday. Technology, Utilities, Industrials and Consumer Discretionary were stronger than SPX -0.40%. Financial stocks stronger than XLF -1.33%: AXP, RF, MS, TRV, USB, TROW, SPG, AOC, CB, BAC, KEY, SHCW, GS, MMC, MET, AFL,BK, ALL and ICE. Tech stocks stronger than XLK +0.40%: YHOO, GW, SYMC, AAPL, EBAY, GOOG, CSCO, QCOM, ORCL, ADBE, DELL and AMAT. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY Sideways: XLE, XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 883 = 200 DMA 910 = 50 DMA 920 = horizontal end of May high 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 870 -875 = horizontal The SPX fell Tuesday and early Wednesday when buyer stepped in at the 870 support level and finished the week range bound between 872 and 887 closing on Friday at 879. The market is sitting at a key support level and seems to be looking for a catalyst to bounce or break support. This next week offers plenty of potential catalysts with earnings, economic announcements and options expiration. Key Earnings and Economic Releases Monday: FAST, GS Tuesday: ABT, INTC PPI, Retail Sales Wednesday: AMR, XLNX CPI, Industrial Production Thursday: BAX, GE, GOOG, IBM, JPM Jobless Claims Friday: BAC, C Housing Starts The SPX fell Tuesday and early Wednesday when buyer stepped in at the 870 support level and finished the week range bound between 872 and 887 closing on Friday at 879. The market is sitting at a key support level and seems to be looking for a catalyst to bounce or break support. This next week offers plenty of potential catalysts with earnings, economic announcements and options expiration on Friday. Key Earnings and Economic Releases Monday: FAST, GS Tuesday: ABT, INTC PPI, Retail Sales Wednesday: AMR, XLNX CPI, Industrial Production Thursday: BAX, GE, GOOG, IBM, JPM Jobless Claims Friday: BAC, C Housing Starts Alert: The up coming week appears to be a pivotal week and you will need to trade with the bounce or the break, whichever occurs. Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA PWRD, FUQI, K, CPLA, ACN, PSYS, MHS, SLGN, AMED, FAZ, ALGT, PPD, AMX, NFLX Moving Above 30 DMA = 2 BYI, CTSH Moving Below 30 DMA = 3 DLTR, ESRX, HLF Staying Below 30 DMA BDX, ORCL, STRA, BKC, GILD, AAPL, APEI, DECK, DV, GMCR, NTLS, USD, VPRT, BIDU, HDB, SYNA, CBST, CHL, ESI, GES, GXDX, ICE, JCOM, JW.A, PCLN, PETS, TDG, WCG, WRC, GR. JOYG, MCD, TRLG, AMZN, MYGN, PWR, X, BAP, GPRO, JEC, NIHD, SNHY, UYG, BLUD, RBN, AFAM, ATW, BIIB, FLS, VAR, PCP, SWN, MUR, RIMM, SPWRA, CAM, CLB, MOS, EBAY, FAS, MON, RCI, SNA, URE, EZPW, WAB, FSLR, WMT, DLB, JOSB, HANS, GME Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral