Friday, January 16, 2015

SPX Rallies 26 Points Closes Near High...Markets Closed on Monday...

All nine sectors moved higher on Friday…XLE, XLV and XLB were the strongest sectors and XLI was the weakest.
 
Breadth was strengthened as advancers led decliners 4.38 to 1 on the NYSE and 3.10 to 1 on the NASDAQ.

Friday – strengthened, advancers led
Thursday – weakened, decliners led
Wednesday – weakened, decliners led
Tuesday – strengthened, decliners led
Monday – NASDAQ strengthened, decliners led


SPY up 2.61 at 201.63 on 211.8 million shares, above average volume
VIX down 1.44 at 20.95…
TNX up .40 at 18.15…
TLT down 1.72 at 133.19...
XLF up .28 at 23.49 on 72.7 million shares, above average volume

AAPL down .83 at 105.99 on 78.5 million shares
FB up 1.13 at 75.18…on 21.7 million shares

Technical Commentary:
IWM +1.63%, SPY +1.31%, QQQ +1.17%, DIA +1.02%.

A broad rally led by small caps, a large number of advancing issues and all nine sectors saw the SPX close near Friday’s high with a gain of 26.75 points.  Friday was just the third up day for the SPX in the first half of January.

Earnings will continue next week after a weak reaction on earnings from JPM, BAC and C this week.  One subtle earnings positive was the reversal on the initial negative reaction to INTC earnings after the close on Thursday.  On Friday INTC opened only slightly lower and then closed slightly higher for the day, significantly better that the initial gap lower reaction on Thursday.

SPX was led by gains in NFX, XEC, NBR, MYL, SLB, PXD, LYB, NBL, BHI, RRC, NE GME, HP, and SWN, all but three of the leaders were oil and gas related, as oil gained more than $2 on Friday.

Many charts had formed a MACD histogram bullish divergence this week including, SPY, IWM, QQQ, DIA, AAPL, ADBE, ADSK, AKAM, AMZN, BIDU, BRCM, EA, FB, GMCR, LRCX, MSFT, NTAP, STX WDC, EXPE, NKE, SCTY SPLK, SWI, UA and XONE.  Many of these charts confirmed that pattern on Friday.

Bull flags on Friday included AVGO, GILD, XLP, AMBA, BX, FEYE, JCP, PANW, RCL, SCSS, SPWR, SUNE and TWTR.

Two breakouts include MNST and GME.


RUT Movers:  KITE, HLSS, PBYI, PE, MTDR, SLCA, CLVS, RCPT, AXLL, ZLTQ, EIGI, BRS, XPO, PDCE, TTWO, AKRX

Trade with the trend of the chart you are trading and continue to move your profit protection stops.  Continue to follow your rules.


Short-term Chart Targets:
SPY = 203.91, 205.10, 208.97...
QQQ = 102.44, 103.11, 105.26
IWM = 117.89, 118.72, 121.41…
Support Levels
SPY = 198.85, 196.77...
QQQ = 99.62, 98.20
IWM = 114.36, 112.61...


Earnings this week:
Tuesday:  ATI, BHI, CREE, DAL, JNJ, MS, NFLX, TRV
Wednesday: AXP, EBAY, FFIV, GD, SNDK, URI, UNH, XLNX
Thursday:  ALK, ALTR, ETFC, ISRG, KLAC, MXIM, SWKS, LUV, SBUX, UNP, UAL, VZ
Friday:  GE, HON, KSU, KMB, MCD, ST

Q4 Earnings Reaction
Positive Reactions – SNX, LLTC, TSM

More than 10% -

Negative Reactions – AA, BAC, C, JPM, KBH, WFC,

More than -10% - KBH,

Reversal in progress


Reversal of Initial Reaction – 


The SPX Market Forecast is pointed down at 35.

___________________



92 out of 100 NDX stocks closed higher on Friday.


Leading NDX 100 stocks included: ATVI, MYL, ALXN, VRTX, AMGN, NFLX, GRMN, BIIB, CTRX, GILD

Lagging NDX stocks included: LBTYA, MU, VIP, AAPL, WYNN, MAR, DISCA, QCOM

Leading stocks > +2% on Friday: UPL, GME, AMBA, MTW, STI, SSYS, P, SWI, CREE, SWKS, FAS, JD, SFUN, YOKU, UAL, CIEN, CRM, TPX, YELP, PANW, MFRM, TSL, AA, SPLK, BBY

Lagging stocks < -2.0% included: JCP, UNG, SCTY, GPRO


Stocks to Watch on Tuesday
Holding Above 30 DMA = 19
SPLS, WFM, SIAL, CHKP, KRFT, MNST, ISRG, SRCL, AVGO, HSIC, CA, CTSH, FISV, NXPI, PAYX, SIRI, CELG, ESRX, DTV

Moving Above 30 DMA = 15
ADP, ATVI, BIIB, CERN, CMCSA, CSCO, CTRX, DISH, EA, GILD, MYL, NFLX, ROST, VOD, VRTX                 

Moving Below 30 DMA = 0
                           

Staying Below 30 DMA
WDC, CHRW, LMCA, TSCO, COST, DLTR, ILMN, MAR, QCOM, AAL, FB, GMCR, LVNTA, STX, TRIP, BBBY, DTV, EBAY, FAST, MDLZ, MSFT, ORLY, SBUX, VRSK, ADI, AKAM, AMAT, BRCM, CHTR, DISCA, FOXA, KLAC, LBTYA, LLTC,  PCAR, PCLN, VIAB, ADSK, EXPD, MAT, MU, ADBE, ALTR, CTXS, EQIX, GOOG, INTC, INTU, SYMC, TXN, YHOO, AAPL, LRCS, NVDA, REGN, NTAP, SNDK, AMGN, XLNX, ALXN, SBAC, AMZN, GRMN, BIDU, TSLA, VIP, WYNN

6-month Intermediate Term Market Trend: Up
3-day Short Term Market Trend: Neutral

1 comment:

Scott Avery said...

Thanks for posting the fact that many other stocks had bullish divergence too. I'm learning I need to check them also (as I have positions in some of them) and not just the indices everyday for bullish divergence.