Friday, October 9, 2015

SPY Inches Higher as VIX Weakens...AAPL, FB Move Higher...AA Lower After EPS...

Five sectors moved higher on Friday…XLV, XLK, XLI were the strongest sectors while XLE was again the weakest sector.

Breadth weakened slightly as advancers led decliners 1.31 to 1 on the NYSE and 1.22 to 1 on the NASDAQ.

Friday – weakened, advancers led
Thursday – weakened, advancers led
Wednesday – strengthened, advancers led
Tuesday – weakened, mixed
Monday – strengthened, advancers led


SPY up .12 at 201.33 on 107 million shares, below average volume
VIX down .34 at 17.08…
TNX down .09 at 20.99…
TLT up .32 at 122.28…on 9 million shares
XLF down .15 at 23.24…on 47.3 million shares, above average volume

AAPL up 2.62 at 112.12 on 52.7 million shares
FB up .77 at 93.24 on 20 million shares

Technical Commentary:
 SPY +0.06%, IWM +0.20%, DIA +0.23%, QQQ +0.45%.

SPY formed a doji closing pennies higher on Friday making its highest daily close since Aug 2, which was the first day of the big selloff.  The VIX dropped to 17.08 its lowest close since Aug 20.  Conclusion:  Price is poised to break out of horizontal resistance and fear continues to drop.  If SPY successfully breaks out of horizontal resistance look for VIX to drop back into its 12 to 15 range.

Even though oil was near unchanged on Friday airline stocks AAL, UAL, JBLU, LUV and DAL gained between two and six percent.

AA -6.81% dropped after reporting 7 cents EPS vs. 13 forecast.

JBL initiated by B. Riley with a Buy and $29 price target.


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 =...197.68, 199.99
QQQ = 105.61, 106.93
IWM = 113.92…

Support Levels
SPY = 190.56, 189.12...
QQQ = 102.27, 101.34
IWM = 106.99...


The SPX Market Forecast is pointed up at 83.

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Setups
Horizontal Breakout: CYBR, EXPE, FAS, FSLR, LVS, MBLY, NKE, RPD, SCTY, SFUN, STI, SVXY, TSL, UA, V, VSLR, ANGI, ATI, BBRY, CIEN, DDD, DGLY, ESI, JASO, LNKD, MTW, SCSS, SSYS, VIAV, XONE, YELP, MAR, MNST, MSFT, NFLX, PCLN, SNDK, TRIP,TXN, WDC,
Diagonal Breakout: QQQ, FIT, GPRO, RCL, ULTA, AXTA, AAPL, AKAM, CELG, ESRX,
Bull Flag: AA, CRUS, CTRP, QIHU, YY

Moves
New Highs: COST,   
H Breakout: GME, CSIQ, EMC, KNDI, LOCO, SBUX,
D Breakout: IWM, SUM, SPLK, ZNGA, NTAP (long term),
Bull Flag Bounce: JCP, P, ADBE, JD 
Bounce: ETSY, JBLU, NCLH, PANW, GIMO, KKD, ILMN,
Gap Up: DAL, UAL, YNDX

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Watch List Stocks
Leading stocks > +2% on Friday: SWI, P, UAL, GPRO, SCTY, JBLU, MBLY, DAL, ETSY, EXPE
           
Lagging stocks < -2.0% included: AA, SEDG, QIHU, TASR, PLAY

53 of 100 NDX stocks closed higher on Friday and one was unchanged.

Leading NDX 100 stocks included: ADSK, AAL, ILMN, JD, NTAP, REGN, AAPL, BIDU, DLTR, CTXS

Lagging NDX stocks included: BIIB, MU, SNDK, TSLA, TRIP, ALXN, ADI, NFLX

NDX Stocks to Watch on Monday:
Moving Above 30 DMA = 3
AAL, BIDU, NXPI

Moving Below 30 DMA = 1
CELG

6-month Intermediate Term Market Trend: Down

3-day Short Term Market Trend: Up

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