Euro, SPY Pull Back Hold Support, SBUX, PCLN Gap Up, AAPL Sells Off...

Stocks opened higher following the Jobs Report and Unemployment Report and sellers took profits sending prices lower combined with a late selloff that reversed most of Thursday’s gains as all nine sectors moved lower…XLY, XLV and XLF were the strongest sectors.

Breadth weakened on Friday as decliners led advancers…2.32 to 1 on the NYSE and 2.68 to 1 on the NASDAQ…

SPY -1.27 at 141.56...volume 137.7 million shares

VIX +0.90 at 17.59…
TNX +0.11 at 17.26…

TLT down 9 cents at 122.26…
XLF down 9 cents at 16.00…volume 58.6 million shares

AAPL down -19.74 at 576.80…volume 21.4 million shares …lowest close since July 26

FB down 3 cents at`21.18… volume 28.3 million shares…

                   

Technical Commentary:
SBUX and PCLN gapped and closed higher following earnings AMC on Thursday; SWKS and VRTX gapped lower and closed lower also reporting Thursday AMC while LIFE opened higher reversed and closed lower. 

AAPL which had been relatively resilient to missed earnings and lower guidance a week ago collapsed on Friday making its lowest close since July 26. 

ADP which had a positive earnings reaction on Thursday reversed and closed lower on Friday.  Stocks that had negative earnings reactions during the past two weeks FFIV, VRSN, ALXN and ALTR bounced down from resistance in bear flag type action.

The Euro sold off 118 pips closed near six-week support of 1.2800. Eight week support is at 1.2750.  Its bull flag pattern has changed to a sideways channel.  TNX, interest rates rose, TLT, bonds closed near unchanged.

XLF was down 9 cents and along with XLI and XLY are the strongest sectors in the intermediate term with price near resistance in a channel.  Relative strength among these sectors suggest potential broad market strength.

The SPY was down -1.27 closing at 141.56 above its 141 support level.  The VIX moved higher confirming the SPY pull back.

ES pull back holds above its 1,400 support level.  NQ still showing confirmed MACD histogram bullish divergence.

The Market Forecast Green Line is pointed up in the lower reversal zone.

                   

 

Chart Signals has continually focused on technical trading with the Trend.  With the broad indexes moving sideways to down and the winding down of earnings season, trading with the up trend on stocks with positive earnings reactions and the down trend on stocks with negative earnings reactions allows traders to trade with the trend of the individual stock.

Earnings Watch:

Positive Reactions – PCLN, SBUX, DNDN, JOE, TRMB, ROVI, DWA, XEC, WPO, SIRI, EA, EXPE, CERN, AMZN, MXIM, CMCSA, ACI, OSTK, VAR, AAN, EMN, APKT, PCAR, WYNN, AKAM, SYMC, MYL, RCL, GDI, CRR, GTI, ISIL, TER, INGR, LSI, FB, SLAB, PLCM, TUP, AVY, REGN, GILD, PNRA, TMO, DOW, VMW, COH, VMED, VECO, WHR, HOG, R, RSH, CSL, LXK, BTU, YHOO, CAT, RVBD, SNDK, WCC, EBAY, MAN, COF, RHI, LRCX, STT, MAT, ISRG, GS, C, PII, DPZ

Negative Reactions – SWKS, VRTX, LIFE, FSLR, WBMD, PBI, FLR, RKT, WMS, NEM, IT, BIDU, VRSN, CA, DECK, VPRT, GT, LPNT, ESI, FFIV, CLF, CROX, SWI, SHW,  TPX, NFLX, ALTR, CPWR, EAT, GLW, JNPR, ALXN, SRCL, CHRW, RF, WDC, DD, CIT, RF, ALV, BMRN, STI, GOOG, IBM, APOL, CHKP, INTC, INFY, CHKP, AXP, XLNX, MSFT, CMG, MS, FLEX, AMD, ETFC, PH, APD, ALGN, MLNX

                   

Chart Targets:

SPY = 146.52 channel high, 147.88 2.61 Fib
ES = 1,466.00 2.61 Fib on ESZ2
EUR/USD = 1.3095 1.60 Fib, 1.3345 S&R Measuring

Short-term support at
1.2800, 1.2750 = Euro

141, 139.40 = SPY

82.19, 81.04 = SPXL
1,400, 1,390 = ES
2,626, 2,604 = NQ

 

                   

 

Stocks to Watch on Monday…

Holding Above 30 DMA = 37
VMED, CMCSA, LINTA, SIRI, SHLD, FISV, AMGN, ISRG, ADBE, LRCX, MAT, YHOO, MYL, ORLY, PCAR, SRCL, SYMC, TXN, WYNN, CERN, CHRW, EXPD, EXPE, MXIM, NFLX, RIMM, AKAM, AVGO, EBAY, FOSL, GMCR, INTU, KLAC, LLTC, MSFT, PAYX, XRAY

Moving Above 30 DMA = 3

EA, PCLN, SBUX

Moving Below 30 DMA = 8
ADP, ADSK, FAST, INTC, LIFE, ORCL, SNDK, SPLS

Staying Below 30 DMA

BIDU, PNRA, GILD, EXPD, CTSH, GOLD, NWSA, PCAR, SIAL, VIAB, ALXN, CELG, ESRX, MNST, TXN, VRSN, WFM, BIIB, FLEX, GOOG, MYL, CHKP,  APOL, INFY, ORLY, VRTX, COST, AMZN, BMC, FFIV, GRMN, HSIC, VOD, WCRX, DLTR, DTV, NUAN, QCOM, AAPL, ATVI, BRCM, CA, NTAP, XLNX, CTXS, SYMC, CSCO, MU, ALTR, BBBY, AMAT, KLAC, MCHP, ROST, STX, NVDA, DELL, MRVL, KRFT

 

Twelve Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Neutral