GOOG Rises 8.23 in After-hours Trading...

The SPX formed a large tail hammer falling to 1,271 before bouncing to close down -1.66 at 1,280.26 on Thursday.

SPX long tailed hammer, bull flagSetup Charts to Watch on Friday
INDU long tailed doji, bull flag
COMPQ hammer, bull flag
RUT spinning top at support, potential morning star pattern, closed below 30 DMA

Breadth strengthened but remained negative on Thursday as decliners led advancers 1.64 to 1 on the NYSE and 2.60 to 1 on the NASDAQ…

Exchange     NYSE     NASDAQ
Advancers    1,131          741
Decliners      1,855       1,931

Index    Chg.    Close    Direction    Confirmation
VIX      +0.68      17.99      Up                Yes – SPX
SOX     -4.56    434.77      Down          Yes – COMPQ

Leading stocks > 1% on Thursday included ESI, X, GME, TBT, UNG, PCX, V, LDK, CAN, TSL, WLT, GES, HANS, NYX, MCP, BAC, AMD

Losing stocks < -1% included ARUN, CRM, NETL, UCO, MOS, RVBD, AGU, VMW, FCX, CLF, FWLT, CF, CRUS, SNDK, POT, DECK, CMG, IPI, SOHU, DOW, SWN, CREE, UNP, DLR, LVS, CAT, STI, DHR, JEC, SINA, TLT, PCP, PNC, GMCR, SLB, CSTR

Positives – IBM, INDU & SPX candle, TNX, weaker bonds, XLF, strengthening breadth and sector strength, bull flag price pattern

Negatives – XLU & XLP leading, NDX, RUT, SOX, AAPL, AMZN, BIDU, GOOG, NFLX, PCLN, negative advancers/decliners

Interest rates moved higher on Thursday and bonds moved lower. The Euro moved down 4 pips to 1.3474 at 5 pm ET.

Five of nine sectors rose on Thursday with Utilities XLU +0.76% and Consumer Staples XLP +0.51% leading all sectors.

Dave’s Insight: Look for re-entry by indentifying the setup and wait for the entry signal according to your rule.

Earnings
Thu – GOOG, ISRG gap up after hours trading, FCX, MXIM, SBUX, UNP
Fri – BAC, GE


Bull Flag Setups – MYL, DISH, DTV, XLNX, LLTC, NVDA, SMH, SINA, INTC, F, GM, A, DE, FAS, NDAQ, NYX, PNC, BK, SID, FWLT, LDK, MCP, PCX, TIE, WLT, CLF, UNP, HUM, HSY, MHS, JOYG, AMD
Breakout – UNG, IBM, ACN, ESI, HANS, HPQ, MS
MACD Divergence – GES, GME, HAS, NKE, HNZ

SPX
Resistance: 1,281, 1,300
Support: 1,256, 1,241, 1,220

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

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

AAPL -6.16 – black spinning top lower shadow bounce at 30 DMA
AMZN -4.91 – large black candle closes below 30 DMA
NFLX -5.87 – black spinning top close at 30 DMA
QCOM -0.81 – black candle
GOOG -4.98 – black candle in bull flag, stock up in after-hours following earnings
BIDU -1.65 – black spinning top in bull flag

NDX 100 stocks stronger than the NDX include EBAY, SHLD, BIIB, NWSA, FSLR, APOL, MU, ORCL, MYL, CEPH, SPLS, KLAC, VRTX, LLTC and ORLY.

Stocks weaker than the NDX: FFIV, STX, MRVL, JOYG, CTXS, BRCM, NFLX, SNDK, ALTR, AMZN, NTAP, AKAM, AAPL, PCLN and GRMN.

Stocks to Watch on Friday
Holding Above 30 DMA
SINA, NDAQ, SMH, CAT, FWLT, PCX, CLF, CRUS, HOLX, A, PNC, DE, FAS, JEC, ACN, BAC, NYX, ATI, CF, URE, AGU, POT, UNP, BA, SWN, UNG, VECO, TBT, TSL, DLR, GMCR, HANS, HUM, HSY, LDK, MHS, NTES, CAM, SLB, SOHU, TIE, ATW, SKX, PCP, MA, SPG, CHL
Moving Above 30 DMA = 2
ESI, WLT
Moving Below 30 DMA = 15
ARUN, CMG, CRM, DHR, DOW, FDX, IPI, MOS, NETL, RVBD, SNDK, STI, UCO, VMW, ZION
Staying Below 30 DMA
AIV, FCX, GS, LVS, LXK, MCP, SWK, UAL, DECK, WHR, AMD, HLF, CREE, X, AKS, GME, ICE, GES, TLT, HAS, V, CSTR, MCD, FAZ

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