SPX Closes Near 1,075 Support...

DJIA - 109.13 -1.08% SP500 - 13.31 -1.22% COMPQ - 10.02 -0.50% Russell 2000 - 12.52 -2.04% Exchange NYSE NASD Advancing 734 629 Declining 2,292 2,065 Oil $80.50 -0.69 Gold $1,055.80 -2.20 SOX 316.41 -10.43 VIX 22.27 +1.58 The VIX moved up and did confirm the move down in the SPX on Friday. The SOX moved up and did confirm the move up in the COMPQ. Strongest Sectors: XLK -0.28%...XLY -0.39%...XLP -0.99% Weakest Sectors: XLB -1.99%...XLE -1.93%...XLI -1.77% All nine sectors moved lower on Friday. Technology, Consumer Discretionary, Consumer Staples and Healthcare were stronger than the SPX -1.22%. Financial stocks stronger than XLF -1.44%: TROW, PNC, BK, CME, C, TRV, SCHW, JPM, AOC and NTRS. Tech stocks stronger than XLK -0.28%: MSFT, EMC, HPQ, DELL, GLW, MA, CSCO and GOOG. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,100 = September 2008 Old Support 1,133 = Mid September 2008 Support Key Support Levels 1,075 = 875 Breakout Chart Target 1,061 = Sep 16 S1 Level 1,056 = Sep 25 R1 level 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target AMZN, BUCY, NFLX, DECK, WHR, MSFT, TROW and SYNA made big moves on Friday after reporting strong earnings. That was not enough to keep the broad indices from selling lower. The SPX which was up 2 plus points just after the open, trended down for the rest of the day. (click image to enlarge) The failure of the broad indices to move higher, with strong earnings and moves in stocks reporting earnings, increases the probability that the current horizontal flag pattern will follow the pattern of the prior four horizontal flag patterns since June, and break support and move down for one or more days. See Wednesday and Thursday's post for more on the horizontal flag patterns. Earnings vs. Estimates: BUCY $1.21 vs. 86 cents NFLX 52 cents vs. 46 cents DECK $2.59 vs. $2.25 TROW 50 cents vs. 46 cents (click image to enlarge) Earnings vs. Estimates: AMZN 45 cents vs. 33 cents MSFT 40 cents vs. 32 cents SYNA 48 cents vs. 42 cents WHR $1.15 vs. 77 cents There were only 11 stocks in the NDX 100 that moved higher. Only 18 outperformed the NDX -0.55%. That indicates how significant that the moves up in AMZN, MSFT and BIDU were as the NDX lost less than half as much as the SPX even though only 11 stocks moved higher. (click image to enlarge) Guidance: The intermediate term trend is up while the short term trend is in a short term horizontal flag pattern. The broad indices moved down from resistance to support. Continue to watch for a potential break below Wednesday’s low for a short term exit signal. Wednesday is still the high day for the SPX, COMPQ and INDU. The SPX closed below the low of the high day by 1.17 points. The COMPQ and INDU closed above the low of the high day. The SPX, COMPQ and INDU are still on Yellow Alert. The RUT is in a short term down trend from its high day on Monday. If support is broken on a chart the most probable move is for price to move to the next support level. Determine whether you want to take that additional draw down or not. Trade the chart of the stocks you watch and follow your rules. Breakout: AMZN, WHR, BIDU, MA, DE, FLIR, PCLN, CAT, ADSK, AAPL, JOYG, BUCY, FLS, AKAM, CAM, FCX, JCG, GOOG, POT Potential Breakout Setups: HANS, ORCL, APOL Pulling Back: BDK, NKE, DOW, DD, WLT, AXP, V, AMX, NWSA, ADBE, AGU Potential C Patterns: C Pattern Breakout: Lower Close in Support Bounce: JEC, JCI, NTAP, FSLR, INTC, SPG, ZION, BAC, FAST, FWLT, XLNX, X, TXN Flag Setups and Bounces in Progress: AGCO Potential Down Trend Setups: MRVL, HOLX, STT, RIMM, MYGN, MON, LVS, WYNN AAPL -1.26 QCOM -0.38 GOOG +0.44 BIDU +19.71 NDX 100 stocks stronger than the NDX include: AMZN, MSFT, BIDU, JOYG, EXPE, ISRG, INFY, LINTA, CHKP, FLIR, DELL, CSCO, GOOG, SRCL, PCAR, HANS, XRAY and AKAM. Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PCLN, CLB, ESRX, NIHD, K, FLS, GXDX, BIDU, HDB, JW.A, ATW, EZPW, JOYG, TRLG, GPRO, PPD, DECK, VPRT, AMZN, GMCR, ACN, SLGN, FSLR, NFLX, HANS, DV, STRA, MCD, CPLA, HLF, SWN, AFAM, CAM, GES, ICE, AMX, APEI, MUR, BYI, MHS, SNA, BKC, WMT, DLB, MOS, WAB, MON, X, ORCL, FSLR, ALGT, RBN, JEC, PCP, PWR, RCI, VAR, WRC, GR Moving Above 30 DMA = 1 PWRD Moving Below 30 DMA = 7 AMED, BLUD, JOSB, TDG, SPWRA, FAS, UYG Staying Below 30 DMA ESI, EBAY, BAP, CHL, GILD, URE, USD, DLTR, GME, SNHY, URE, PETS, WCG, MON, X, PSYS, NTLS, PPD, FAZ, BDX, BIIB, JCOM, FUQI, CBST, RIMM, MYGN, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Neutral, RUT = Down