Thursday, September 22, 2011

SPX Forms Large Black Candle..SPY Gaps Lower Closes Near Open....

Futures traded lower overnight and the SPY opened down -3.38 and traded as low as 111.30 low, bounced and closed at 112.86.  The SPX dropped -37.20 and closed at 1,129.56. The VIX moved up +4.03 and closed at 41.35. 

SPY volume increased to 513.5 million shares.

Following a falling Euro and interest rates the SPX moved to support at 1,114 before rising 15 points to close at 1,129.  If the SPX 1,100 horizontal support holds the SPX bounces, watch for potential entry signals above the high of the low day, on Friday.

Stronger up trending stocks with a bull flag setup include:  AAPL, ORLY, AMGN, CERN, DLTR, COST, CELG, ALXN, GMCR, BBBY, AMZN, ISRG, ROST, WFM, ATVI, FLIR, FAST, YHOO, LINTA, MXIM, MRVL, VRTX, SNDK, MU, ORCL, KLAC, EBAY

The Euro fell and TNX dropped -1.60 to a new low at 17.15 while XLF -0.34, -2.86% was down almost half of Tuesday’s down move and was the fourth strongest sector.

Twenty Eight NDX stocks including ADBE, CSCO, CTSH, DELL, GILD, GOOG, GRMN, MSFT, NVDA, PCLN, QCOM, and WYNN moved below their 30 DMA leaving 34 NDX stocks above the 30 DMA.  In our 30 DMA Watch List, seventeen more stocks moved below the 30 DMA leaving 14 stocks above their 30 DMA.

Intermediate Posture based on the MF Green Line turned negative today as the green line moved down to 58.

Technical indicators weakened further today including more stocks moving below their 30 DMA as the SPX found buyers at horizontal support.
 
(click image to enlarge)

NDX gap down high wave candle, close below 30 DMA -3.26%
SPX large black candle, below 30 DMA -2.94%
INDU large black candle, below 30 DMA -2.49%
COMPQ gap down high wave candle, close below 30 DMA -3.25%
RUT gap down black candle, below 30 DMA -3.18%

Breadth weakened as decliners led advancers 7.92 to 1 on the NYSE and 6.20 to 1 on the NASDAQ

Exchange       NYSE        NASDAQ
Advancers         346              368
Decliners        2,742            2,282          

Index         Change    Close    Direction    Confirmation
VIX               +4.03      41.35      Up              Yes – SPX
SOX             -12.59    352.78      Down         Yes – COMPQ

Leading stocks > +2% on Thursday FAZ, TLT

Losing stocks < -2.0% included ATI, SLW, FWLT, AKS, CDE, FAS, X, ANR, UCO, CLF, PCX, SOHU, DOW, MCP, ZAGG, FCX, SINA, CREE, SWN, TBT, RCL, CRM, JDSU, SWKS, NTES, LVS, CAT, HAL, CSTR, CIEN, NVDA, TIF, POT, KKD, WDC, C, SWK, SLB, GES, LDK, GLW, VMW, DE, ANF, GMCR, TPX, MOS, RVBD, URE, BAC, HLF, ENTR, DHR, NGLS, ZION, TSL, CF, COH, GS, DECK, CRUS, STI, F, V, JNPR, WLT, FFIV, LNKD, ESI, INFA, UAL, A, SNDK, CHL, SMH, CROX, IBM, CMG

All nine sectors moved lower on Thursday.  Utilities XLU -1.69%, Consumer Staples XLP -1.90% and Healthcare XLV -2.02% were the strongest sectors.

The Euro moved down 102 pips to close at 1.3462 at 5 pm on Thursday.

SPX
Resistance: 1,146, 1,160, 1,177
Support: 1,134, 1,117, 1,100

The short term 3 day trend is down.
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 -10.32 spinning top, above 30 DMA
AMZN -8.64 – spinning, above 30 DMA                                          
BIDU -15.15 – large black candle, below 30 DMA
GOOG -7.42 – hammer like, close below 30 DMA
NFLX +0.03 – spinning top, below 30 DMA
PCLN -25.70 – gap down large black candle, close below 30 DMA
QCOM -1.63 – doji, close below 30 DMA

NDX 100 stocks stronger than the NDX include ILMN, BBBY, YHOO, NFLX and CELG.

Stocks weaker than the NDX include BIDU, JOYG, FSLR, NIHD, CHKP, VRTX, SIRI, APOL, NVDA and EXPE.

Stocks to Watch on Friday
Holding Above 30 DMA = 14
TLT, GMCR, V, DECK, ICE, SNDK, CMG, COH, CRUS, HUM, NDAQ, UAL, IBM, FAZ
Moving Above 30 DMA = 0

Moving Below 30 DMA = 17
ANF, CHL, CRM, CROX, DHR, HLF, JDSU, LVS, NGLS, NKE, NVDA, SLW, SMH, SWKS, SWN, TIF, TPX
Staying Below 30 DMA
A, ARUN, CIEN, CREE, CSTR, DE, ENTR, FFIV, RCL, STI, URE, VMW, ATI, CF, DOW, GES, IL, KKD, LNKD, MOS, RVBD, SINA, UNP, WDC, CDE, CLF, DLR, F, FAS, MCP, POT, UCO, WLT, ZION, AKS, CAT, FWLT, PCX, JNPR, NTES, SOHU, ZAGG, GLW, SWK, TSL, BAC, VECO, LDK, HAL, ESI, FCX, GS, SLB, ANR, C, TBT, X, INFA

Six Week Intermediate Term Market Trend: Neutral
Short Term Market Trend: Down

1 comment:

Scott Avery said...

Dave, your trading room last night was just excellent. Beforehand, my trading partner and I were talking about our market posture. We were feeling that it's very possible that we would bounce, except for one thing - the XLF issue. It had closed below support. But not by much....Anyway then when we listened last night it was EXACTLY the material and nuance that we needed. It was as we were talking to you beforehand and asked you to address and pinpoint that issue. You gave a very high level explanation about it that just wouldn't be available anywhere else. You clarified it's relationship to the Euro (I hadn't seen the bullish divergence on the Euro before), the dollar, interest rates etc. You are the COMPLETE TRADER. Everyone who is even the slightest bit interested in trading as a business owes it to themselves to to subscribe to those trading rooms just for experiences that like!