SPY Breaks Support of Its Six Day Trading Range...And Its 30 DMA...

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The SPY broke the support of its six day trading range and its 30 DMA on Friday after the April Jobs report showed only 115,000 new jobs created and an Unemployment rate of 8.1%.  March jobs were revised upward.  After the SPY broke short-term support on Friday selling continued sending the ETF towards its 136 intermediate term support.

Eight of nine sectors moved lower on Friday.  Defensive sectors XLU and XLP and XLV were the strongest sectors.

Breadth weakened as decliners lead advancers 3.11 to 1 on the NYSE and 4.02 to 1 on the NASDAQ.

Exchange        NYSE       NASDAQ

Advancers         733             501

Decliners        2,282          2,017

SPY moved down 2.25 on 193.9 million shares.  AAPL fell 16.57 to 565.25 on 18.9 million shares.

Technical Commentary:

Over the past five weeks most stocks along with the SPY have shifted into a sideways trading range setting up a potential break of support or a support bounce.  A smaller percentage of stocks have remained in a series of higher highs and higher lows and are forming bull flags patterns.  The following symbols had either bullish or bearish setups, breaks or bounces as of Friday’s close.

At/Near Support Setup – SINA, ICE, MOS, C, BAC, SWK, ZION, AKS, X, RVBD, CROX, JNPR, AKAM, BIDU, QCOM, NTAP, APOL, INFY, MU, SNDK

Break of Support – GS, TPX, CLF, CSCO, FAST, DELL, CTSH, AVGO, MCHP, ALTR, ADSK

Bear Flag Bounce – A, INFA, RCL, SHLD

Bull Flag Bounce – UAL

Bull Flag Setups – URE, CHL, DLR, ZAGG, CRUS, NKE, ROST, ORLY, MNST, BIIB, VRSN, DLTR, STX, AMGN, WCRX, AMZN, CTXS, EXPE, CERN

Horizontal Bull Flag Setups – SWI, VECO, WFM

Bull Flag Setup following Reversal Pattern – ATI

99 of 100 NDX stocks closed lower on Friday…

Leading NDX 100 stocks included MU

Lagging NDX stocks included FSLR, AVGO, SHLD, FOSL, ALXN, BRCM, ADSK, NFLX, ESRX, EA

Leading stocks > +2% on Friday included LNKD, FAZ, UAL

Losing stocks < -2.0% included UCO, CROX, GES, CIEN, FAS, JDSU, AKS, TPX, VMW, INFA, ANF, SLB, X, CLF, GRPN, BAC, CRM, PCX, JNPR, TIF, A, C, ANR, MOS, COHU, RCL, CRUS, GLW, COH, F, GS, SMH, ATI, NKE, STI, SWKS, DE

Stocks to Watch on Monday

Holding Above 30 DMA = 20

TLT, URE, NTES, CHL, DLR, ATI, LNKD, V, ZAGG, ANF, CREE, CRUS, ESI, NKE, SWI, FCX, SWKS, TSL, VECO, FAZ

Moving Above 30 DMA = 1

UAL

Moving Below 30 DMA = 8

CRM, CSTR, DE, GLW, IBM, SLB, STI, VMW

Staying Below 30 DMA

CMG, DHR, ESI, FAS, FCX, SMH, SWKS, TIF, UCO, V

AKS, ANR, JNPR, X, HLF, SOHO, DECK, HUM, WDC, CROX, LVS, FAZ, CIEN, PCX, RCL, RVBD, CLF, MCP, SWK, TPX, X, ZION, INFA, BAC, A, TBT, F, JDSU, C, GS, TSLA, COH, GRPN, MOS, ICE, SINA, GES, CDE, LDK

Six Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down