Another Flat SPX in Short Term Neutral Range...Euro Rises...

Happy New Year!

The SPX closed at 1,257.88, down -1.90 or -0.15%.  On Thursday each of the broad indexes again traded in a very narrow range on light volume continuing the trading pattern since last Thursday.  SPY, QQQQ and IWM volume increased over Wednesday while DIA volume was slightly lower.

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The SPX did close below the low of the high day but above the short term support level of the last six trading days.

SPX black spinning top, weak confirmation of Wednesday’s shooting star

INDU black spinning top, weak confirmation of Wednesday’s shooting star

COMPQ potential shooting star

RUT tombstone doji with weakest confirmation 0.01 of Wednesday’s bearish harami

Breadth weakened on Thursday and did remain modestly positive as advancers led decliners 1.02 to 1 on the NYSE and 1.13 to 1 on the NASDAQ…

Exchange       NYSE          NASDAQ

Advancers      1,499              1,400

Decliners        1,462              1,231

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Index Direction     Confirmation

VIX      Up                 Yes – SPX

SOX    Up                 No – COMPQ

Leading stocks on Thursday included WLT, ESI, RVBD, UAL, GME, AGU, GES, DLR, MOS, CF, SOHU, ARUN,, TIE, SNDK,LXK, GMCR, CLF, X, UNG, NTES, AMD, USD, IPI, SWN, FAZ OLX, FLS, RMBS, NETL, VECO, SKX

Losing stocks included UCO, CMG, ATI, LDK, LVS, AKS, INFA, FAS, CREE, MA, NDAQ, DECK, SPG, CRM, FWLT, PNC, CAM, V, PCP, ACN, GR  

Interest rates rose on Thursday and bonds moved slightly lower.  The Euro moved up 64 pips to 1.3289 at 5 pm ET. 

The SOX rose +1.10, closing at 411.20 on Thursday.  The VIX rose +0.24, exactly what it fell on Wednesday, and closed at 17.52.

Just one of nine sectors moved higher on Thursday with Energy XLE +0.09% and one was neutral Materials XLB +0.00% leading all sectors.

Moves on Thursday

Continuation – AZO, IPI, UNG, WLT, AGU, MOS SPG,  BYI, URE, CF, GME, FAS, FLS, FCX, ZION, STI, WFC, BAC, XLF, SWK, NUE, STLD, A, DHR

Resistance Breakout –

Bull Flag Bounce – X, GES, AMZN, ACN, JEC

MACD Divergence Bounce –

Support Bounce – JASO, MA, RMBS

Bear Flag Break – TLT, TSL

Break of Support – CMG,

Continue to watch our Bull Flag and Horizontal Breakout Setups for potential entry signals...

Setup Charts to Watch

Bull Flag Setups – VMW, GS, ICE, SNDK, LVS, NTRI, ATW, ILMN, NTAP, DECK, UNP, AKS, CAT, DE, GOOG, GR, FFIV, HSY, SINA, CLF, ATI, NDAQ, F, WFMI, WYNN, AMD, NETL, USD, CRUS

Horizontal Breakout – X, PNC, NYX, WHR, AIV, C, SLB, DOW

MACD Divergence – CREE, CAKE, NFLX, CSTR, AKAM, BIDU, LDK

Bear Flag Setups – HAS, V, SKX

Horizontal Support Breakout – TBT, CAKE, LD

Continue to trade with the trend of the chart you are trading.

SPX

Resistance: 1,256, 1,281

Support: 1, 241, 1,220, 1,209

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.  Thursday was an entry signal for many stocks.

Enter bearish trades on a break of short term support or a bounce down from the 30 DMA.

The short term 3 day trend is neutral.
The six-month trend is up.
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 -1.63 – black candle in bull flag

AMZN -0.62 – black candle pause in bull flag bounce

NFLX -0.47 – hammer, potential morning star and MACD bullish divergence

QCOM -0.26 – bearish engulfing day one bull flag

GOOG -2.14 – inverted hammer in bull flag

BIDU -0.90 – black candle at support and MACD bullish divergence

NDX 100 stocks stronger than the NDX include GRMN, MICC, MU, WCRX, SNDK, WFMI, FSLR, YHOO, INFY, BRCM, BMC, CMCSA, ROST, APOL and URBN.

Stocks weaker than the NDX: FLEX, CTRP, ADBE, EXPE, ADSK, VOD, FFIV, ISRG, BIDU, WYNN, INTU, CEPH, EBAY, KLAC and XRAY.

Stocks to Watch on Friday
Holding Above 30 DMA
SINA, CAM, WLT, ATW, SLB, NDAQ, USD, DECK, GR, RVBD, BYI, CAT, X, CREE, GES, CLF, INFA, VMW, SNDK, CRUS, FCX, FDX, AKS, A, AMD, DHR, DOW, FLS, GME, ICE, PNC, TBT, UCO, DE, FAS, JEC, STI, SWK, WHR, ZION, ACN, BAC, NYX, ESI, IPI, HSY, NTRI, ATI, CF, PCP, HANS, AIV, GS, URE, AGU, MOS, POT, UNP, BA, SPG, RMBS, SWN
Moving Above 30 DMA = 2

DLR, UNG

Moving Below 30 DMA = 0

Staying Below 30 DMA
HAS, HLF, TSL, CRM, MHS, NETL, CAKE, TIE, MA, SKX, V, CSTR, VECO, ARUN, CMG, SOHU, GMCR, MCD, AMX, LVS, UAL, FAZ, TLT, NTES, LDK, CHL, LXK

Intermediate Term Market Trend: Up
Short Term Market Trend: Up