Friday, June 3, 2011

SPX Falls to 1,300 Support...


The SP futures sold off before the open on Friday after a lower than expected 54,000 new jobs created in May report was released at 8:30 am EDT.  The SPY low was formed in the first five minutes and the SPY rallied from to above Thursday’s low before selling off going into the close.  The SPY formed an inverted hammer, which is a bullish candle.  Look for confirmation on Monday. 

The SPX closed down -12.78 at 1,300.76 a horizontal support level.  The broad indexes are at support.  If price breaks support it will most likely fall to the next support  level.  If support holds the charts suggest a support bounce move to resistance or other price targets.

(click image to enlarge)

SPX black candle, close below 30 DMA -0.97%
INDU black candle, below 30 DMA -0.79%
COMPQinverted hammer, below 30 DMA -1.46%
RUT large black candle, below 30 DMA -1.53%

Breadth weakened as decliners led advancers 2.52 to 1 on the NYSE and  3.65 to 1 on the NASDAQ

Exchange       NYSE        NASDAQ
Advancers         862               566
Decliners        2,176            2,070

Index              Chg.    Close    Direction    Confirmation
VIX                 -0.14     17.95      Down           No – SPX
SOX               -7.90   418.52      Down           Yes – COMPQ

Leading stocks > +2% on Friday included SWN, FAZ

Losing stocks < -2.0% included SINA, SWKS, LDK, VECO, SOHU, JNPR, ATI, CIEN, TPX, CY, CSTR, NTES, NVDA, JDSU, MHS, HLF, CRUS, MCP, TSL, VMW, GES, SWK, HUM, RVBD, SNDK, DE, GLW, INFA, CRM, FAS, PCX, WLT, ANF, SMH, CREE, ENTR, ANR

Positives – TLT, VIX, Euro, XLE, XLF, NFLX, Gold, Silver

Negatives – TNX, SPX, INDU, RUT, COMPQ, NDX, breadth weakened, SOX, XLB, XLY, XLI, XLK, AMZN, BIDU, QCOM

Eight of nine sectors moved lower on Friday.  Energy XLE +0.03% and Financials XLF -0.65% were the strongest sectors.

Bull Flag Setups for Monday: ANF, TIF, COH, CY, FFIV, VECO, GMCR, KKD, CMG, CF, CREE, IFNA, CRM, V, MA GES, NVDA, POT, AGU, CHL

(click image to enlarge)

SPX
Resistance: 1,310, 1,321, 1,330
Support: 1,300, 1,288, 1,278

The short term 3 day trend is down.
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 -2.66 – spinning top, close below 30 DMA
AMZN -5.33 – black candle, below 30 DMA
BIDU -5.28 – bearish harami, just below 30 DMA
GOOG -4.98 – spinning top, just below 30 DMA
NFLX +2.00 – white candle, above 30 DMA
PCLN -4.98 – spinning top, below 30 DMA
QCOM -0.76 – spinning top, above 30 DMA

On Friday 16 NDX 100 stocks including AAPL, ILMN, NTAP, NVDA and WYNN closed below their 30 DMA, leaving just 20 stocks still above their 30 DMA.

NDX 100 stocks stronger than the NDX include VOD, NFLX, INFY, QGEN, VRTX, GENZ, CEPH, GMCR and VRSN.

Stocks weaker than the NDX include BIDU, MRVL, SPLS, RIMM, ALTR, XLNX, EBAY, NVDA, CTXS, ADBE, AMZN, MU, WFM and NTAP.

Stocks to Watch on Monday
Holding Above 30 DMA
HUM, HLF, DLR, TIF, COH, TLT, CY, FFIV, VECO, GMCR, KKD, RVBD, FAZ, CMG, VMW, CF, CREE, INFA, CRM, IAG, V, POT, AGU CHL, UNG, ESI
Moving Above 30 DMA = 3
ATW, SWN, SLB
Moving Below 30 DMA = 7
ACN, ANF, GES, NGLS, NVDA, SINA, UNP
Staying Below 30 DMA
ANR, TPX, WTW, A, AKS, CLF, CRUS, CSTR, DECK, DHR, ENTR, FCX, FWLT, ICE, SMH, SNDK, STI, URE, ZION, UAL, MHS, HAS, JDSU, JNPR, SWK, ARUN, GLW, ATI, CIEN,  DOW, F, CAT, IL, NDAQ, SWKS, WDC, MCP, WLT, FAS, LVS, SOHU, UCO, DE, NETL, PCX, LDK, TSL, NTES, SLW, GS, CDE, TBT, MOS, X, CAM, BAC

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

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