Hammer Time on IWM, SPY, DIA, QQQ, FAS, Sector Charts and More...

Two of nine sectors moved higher on Thursday… XLP, XLY, and XLK were the strongest sectors.   XLE was the weakest sector.

Breadth strengthened on Thursday as decliners led advancers…1.20 to 1 on the NYSE and 1.30 to 1 on the NASDAQ…

Thursday – strengthened, decliners led

Wednesday – weakened, decliners led

Tuesday - closed

Friday – weakened, decliners led

Thursday – strengthened, advancers led

If short-term trades were exited through target or stop, begin to look for re-entry on a valid signal.

SPY down 19 cents at 141.56...volume 167.9 million shares…

VIX down -.01 at 19.47…
TNX down -0.43 at 17.15…

TLT up 41 cents at 122.61…
XLF down 6 cents at 16.31…volume 44.4 million shares

AAPL up 2.06 at 515.06…volume 16.2 million shares …

FB down 46 cents at`26.05…on volume of 43.5 million shares…

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Technical Commentary:

The SPY closed down 19 cents at 141.56 forming a long tailed hammer as did IWM, DIA, QQQ, FAS, XLB, XLE, XLI, XLK, XLP, XLU, XLV, XLY and many individual stocks.  The VIX closed slightly lower and did not confirm the SPY move down.

The weight of the evidence continues to suggest that the current 5 week uptrend is likely to continue.

The Euro closed up 12 pips at 1.3235 on Thursday. TNX was lower, TLT, bonds rose 41 cents and XLF was down -6 cents at 16.31.

Disk storage stocks WDC and STX paused on Thursday as did coal stocks ANR, ACI, BTU and WLT.

The Market Forecast Green Line is in the upper reversal zone.

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Chart Targets:

SPY = 146.82 short-term resistance flagpole target
ES = 1,449 161% Fib extension

1,459 = 200% measuring

EUR/USD = 1.3281 161% Fib extension

Short-term support at
1.3126 = Euro

140.88 = SPY

85.18 = SPXL
1,419, 1,405 = ES
2,609 = NQ

Setups:

Bull Flag: IWM, FAS, WFC, NFLX, NTAP, ORCL, FB, GOOG, VMW, MCP, MNST, ZION, STI, IBM, SBUX, CELG, DELL, TRIP, SMH, ADI, ALTR, XLNX, ADBE, ADSK, BIIB, CHKP, CSCO, CTSH, CTXS, FOSL, INTC, INTU, MU, NVDA, SWK, JNPR, GLW, V, URE, EXPD, SNDK, LLTC, A, CRM, CREE, DHR, LVS, NKE, SSYS, TPX, LCC,

Hammer at Support: SPY, DIA, QQQ, ADP, MSFT, AMZN, AAPL, VIAB, TSLA, EBAY, RCL, SLB, TIF

Moves:

Bull Flag Bounce:  DECK, EXPE

Bounce Continuation:  DLR, FAST, GRMN

Pause:  RIMM, BIDU, AKS, F, BAC, WDC, STX, AMAT, SIAL, C, ATI, PCAR, LNKD, ALXN, YHOO, GMCR, EXPD, URI, COST, VECO, PCAR, DISCA

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32 of 100 NDX stocks closed higher and one was unchanged on Thursday…

Leading NDX 100 stocks included:  EXPE, AVGO, FOSL, GRMN, ISRG, ROST, PCLN, EQIX, LBTYA, VMED, SRCL, FAST

Lagging NDX stocks included:  BIDU, FB, CTRX, CSCO, BMC, ORCL, MXIM, DISCA, DELL, INTU, AMGN, CMCSA, CA, SNDK, COST

Leading stocks> +2% on Thursday included:  DECK, UCO, HLF, CMG

Lagging stocks < -2.0% included: AKS, MCP, TSL, TPX, SSYS, X, ANR, UAL CIEN

Stocks to Watch on Friday…

Holding Above 30 DMA = 60
YHOO, MYL, SBUX, CSCO, NTAP, VMED, SBAC, EXPD, LLTC, MXIM, PCAR, XLNX, TXN, ADI, SIAL, AMZN, FISV, ADSK, DELL, FFIV, MU, ORCL, BRCM, COST, MNST, ADBE, GOOG, GRMN, NWSA, WYNN, DISCA, AMAT, CTSH, ADP, FOSL, INTU, KLAC, VIAB, NUAN, STX, LBTYA, WDC, AKAM, ALTR, CHKP, FAST, MCHP, SNDK, EQIX, LMCA, CTXS, CHRW, NVDA, ESRX, INTC, SIRI, BIDU, CMCSA, VRTX, VRSK

Moving Above 30 DMA =2

EXPE, PRGO

Moving Below 30 DMA = 6

CA, CELG, HSIC, WFM, XRAY, FB

Staying Below 30 DMA

ALXN, BIIB, BMC, CERN, DTV, EBAY, LIFE, LINTA, MAT, MSFT, REGN, DLTR, SYMC, MDLZ, AMGN, ORLY, PAYX, QCOM, SPLS, CTRX, BBBY, GILD, ISRG, SRCL, ATVI, VOD, AVGO, PCLN, AAPL, SHLD, GOLD, ROST

Fifteen Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Neutral