Thursday, October 28, 2010

SPX Forms Doji...COMPQ Potential Hanging Man...

The SPX closed up +1.33 or +0.11%, after being down more than 6 points, on Thursday forming a doji candle …
(click image to enlarge)

LVS, ORLY and AEM were among the market leaders after reporting better than expected earnings. Advancers barely led decliners 1.03 to 1 on the NYSE…

Exchange     NYSE    NASDAQ
Advancers    1,499       1,108
Decliners      1,451       1,520
(click image to enlarge)

Index     Direction     Confirmation
VIX          Up               No – SPX
SOX         Down          No – COMPQ

Leading stocks on Thursday included LVS, AMD, VOD, UNG, ESI, ATI, IPI, GS, JEC, CSTR, GR, SWK, WLT, DLR, USD, A, HANS, HSY, BUCY, FDX, SLB, SWN, UNP, FAZ, BA, SOHU, X, TSL, SNDK, DHR, PCP

Losing stocks included SKX, FLS, WHR, V, RVBD, POT, MA, GES,LXK, VMW, NTES, UAL, CF, AGU, NFLX, URE, DECK, PCLN, NTRI, DOW, BYI, SINA, ZION, CMG, FAS, CREE, AIV, FFIV, CHL, AKS, MHS, NDAQ, CAT, CLF

Interest rates moved lower, bonds rose, the EURO rose, the SOX fell -0.11%. The VIX rose +0.17 at 20.88.

Five of nine sectors moved higher on Thursday with Healthcare XLV +0.58% and Consumer Discretionary XLY +0.46% leading all sectors.

Charts to Watch - Bear Flag Setups
(click image to enlarge)
SPX
Resistance: 1,182, 1,190, 2,000
Support: 1,170, 1,148, 1,130

Enter bullish trades with a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

On Thursdaythe SPX again barely closed below the low of the high day on Monday so the barely Red Alert on the SPX on Wednesday is still barely on Thursday. We maintain our Yellow Alert on the COMPQ looking for a close below the low of the high day. As I said in Monday night’s webcast a move below the low of the high day does not necessarily signal a major retracement, but it does signal at least a short term pull back.

A break and/or close below the low of the high day can be a potential exit for short bullish trades. Entry for a bearish signal can be a close below of the low of the high day for a counter trend trade or the same entry on a down trending stock.

The short term 3 day trend is neutral.
The three-month trend is neutral
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch. Trade with the trend of the chart and follow your rules.

AAPL -2.59 – hammer
QCOM -0.06 – black candle
GOOG +2.11 –potential hanging man
BIDU -0.70 – small bearish engulfing

NDX 100 stocks stronger than the NDX include FLEX, ORLY, SYMC, NIHD, CELG, CMCSA, MRVL, PPDI, WYNN, ORCL, BIIB, CTSH, EBAY, DISH and CEPH.

Stocks weaker than the NDX: STX, XRAY, KLAC, SHLD, GRMN, URBN, LRCX, CHRW, HSIC, PCLN, FISV, ESRX, SRCL, FWLT and ERTS.

Stocks to Watch on Friday
Holding Above 30 DMA
HLF, PCLN, AGU, MCD, LVS, CMG, FCX, SINA, VOD, AIV, CAKE, CAM, DE, DHR, DOW, UNP, URE, WLT, A, HAS, IPI, ICE, ATW, SLB, ACN, AMX, NDAQ, UAL, USD, MA, HSY, FDX, NTRI, AMD, V, ATI, BA, DECK, GR, UCO, CF, GS, SPG, HANS, MOS, VECO, CSTR, RVBD, TBT, WFMI, NYX, NFLX, NTES, PCP, PNC, BYI, INFA, MHS, NETL, CRM, FFIV, GMCR, SNDK, SWN
Moving Above 30 DMA = 2
ESI, JEC
Moving Below 30 DMA = 4
CAT, FAS, FLS, POT
Staying Below 30 DMA
GES, JEC, SKX, WHR, ZION, CLF, LXK, CHL, STI, SWK, CREE, AKS, TIE, FAZ, RMBS, TSL, ESI, BAC, GME, CRUS, X, TLT, DLR, VMW, UNG

Intermediate Term Market Trend: Neutral
Short Term Market Trend: Neutral

2 comments:

Judy said...

Good night DAVE! Thanks for the doji report. I am still waiting for confirmation. I will continue to wait for another day. Looking forward to the markets tomorrow. Judy

Aliou Sylla said...

Hi Dave,
I think you meant 1200, not 2000 as resistance on the $SPX. Have a great one.