SPX Ends Volatile Week Near Weekly High...

The SPX made its highest close of the week on Friday, gaining +6.17 closing at 1,178.81. 

The SPX is potentially forming a basing pattern which closed above its low of 1,168 on Friday, August 5. Technically, we would like to see the SPX close above the August 5 close of 1,199, which was also the low on Thursday August 4.  This is a key short term resistance area of the current basing pattern.  Failure to breakout would suggest continuation of the trading range between 1,100 and 1,190.  The chart below shows the weekly view of the trading range basing pattern which is forming a weekly hammer on the broad indexes.

The VIX fell closing down -2.64 at 36.36.  Interest rates moved lower and financial stocks retreated from early gains and closed lower.

(Click image to enlarge)

NDX spinning top near trading range resistance, below 30 DMA +0.69%

SPX spinning top near trading range resistance, below 30 DMA +0.53%

INDU white candle, below 30 DMA +1.13%

COMPQ doji, below 30 DMA +0.61%

RUT spinning top, below 30 DMA +0.23%

Breadth weakened as advancers led decliners 1.77 to 1 on the NYSE and 1.07 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      1,954           1,344

Decliners        1,103           1,245

Index         Change    Close    Direction    Confirmation

VIX               -2.64       36.36       Down         Yes – SPX

SOX             -1.50     355.62       Down         Yes – COMPQ

Leading stocks > +2% on Friday MCP, FFIV, DECK, A, CLF, ZAGG, NTES, ARUN, WLT, CAT, COH, ANR, CF, ANF, LVS, SWK, DE

Losing stocks < -2.0% included TSL, NVDA, TBT, IL, ENTR, ZION, FAS, NDAQ, ESI

Relatively stronger stocks in our watch list include:  FAZ, TLT, GMCR, CREE, SLW, CF, CHL, CROX, DECK, MCP, NTES, SOHU, ZAGG, HLF, LDK, LVS, MOS, NDAQ, NGLS, NTES, SINA, SWKS, V

NDX 100 Stocks Above 30 DMA: GMCR, AAPL, CSCO, NWSA, ALXN, BIDU,VOD

Seven of nine sectors moved higher on Friday.  Industrials XLI +1.95% and Consumer Discretionary XLY +1.23% were the strongest sectors.  Financials XLF -0.70% was the weakest sector.

Interest rates TNX closed -0.99 at 22.37, bond ETF TLT rose $2.05 and Financials XLF was down 9 cents.  The Euro moved up 11 pips to close at 1.4246 at 5 pm on Friday.

SPX

Resistance: 1,200, 1,225, 1,235

Support: 1,173, 1,158, 1,146

The short term 3 day trend is sideways.

The six-month trend is down.

The twelve-month trend is neutral.

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 +3.29 – spinning top, above 30 DMA

AMZN +3.94 – spinning top confirms bullish harami, below 30 DMA

BIDU +2.00 – spinning top at resistance, close above 30 DMA

GOOG +1.64 – spinning top, just below 30 DMA

NFLX +0.87 – spinning top, below 30 DMA

PCLN +2.95 – spinning top confirms hammer, below 30 DMA

QCOM +0.95 – white candle, below 30 DMA

NDX 100 stocks stronger than the NDX include FFIV, YHOO, URBN, ERTS, ALXN, CHRW, VRSN, CHKP, WYNN and LINTA.

Stocks weaker than the NDX include NVDA, MU, SHLD, CTXS, ORCL, AMAT, ILMN, ALTR, FISV and SNDK.

Stocks to Watch on Monday

Holding Above 30 DMA

FAZ, TLT, GMCR, CREE, SLW, CF, CHL, CROX

Moving Above 30 DMA = 5

DECK, MCP, NTES, SOHU, ZAGG

Moving Below 30 DMA = 0

Staying Below 30 DMA

HLF, CAM, CDE, CMG, IAG, LVS, MHS, MOS, SNDK, SWKS, TPX, V, WTW, ESI, ANF, ATW, COH, FCX, GS, POT, SLB, WLT, NKE, SINA, SWN, ACN, AGU, DOW, UCO, UNP, VMW, CLF, NGLS, ANR, ATI, CAT, CIEN, CRM, CRUS, CY, DLR, FAS, ICE, JNPR, LDK, NDAQ, SMH, STI, TIF, URE, WDC, AKS, CSTR, DE, PCX, TBT, X, ZION, KKD, NETL, DHR, FFIV, SWK, UNG, ARUN, RVBD, HUM, ENTR, INFA, A, F, GES, HAS, BAC, TSL, UAL, VECO, NVDA, FWLT, JDSU, GLW, IL

Intermediate Term Market Trend: Down

Short Term Market Trend: Neutral