SPX Gains Day 3 as Trade Talks Produce Phase 1 Agreement...

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Upcoming:

Tue Oct 15 – Earnings Season unofficial start with JPM, C, WFC, GS, JNJ, UNH, UAL, SCHW, JBHT, PGR, BLK, FRC, OMC, PLD,

Wed Oct 30 – next FOMC Meeting Announcement

Thu Oct 31 – Brexit deadline

SPX closes at 2,970, down -1.72% from Sep 19th 3,021 high and up +4.00% from its Oct 3 low of 2,856. 

The SPX followed through from Thursday’s bounce closing up 32 points, after a Phase 1 trade agreement between the US/China, closing more than 10 points above Monday’s high.  Look for the institutional short-term focus to be on EPS releases beginning on Tuesday.

FAST +5.32, +17.15% on Friday, indicates institutions are prepared to buy stocks with positive EPS reports and guidance.  This is a positive heading into earnings season.

Our current technical assessment is an Aug – Oct (2,822 – 3,027) sideways channel with Friday’s price action breaking above the 2,840 mid-channel resistance area closing in the upper half of the range.  Price action now most likely to continue fluctuating between 2,840 support and 3,020 resistance.

The DJIA, closed up 319 points at 26,816 led by strength in AAPL, MMM, CAT, GS and BA.  Closing below 27,000 for the sixteenth straight day.

Eight of eleven sectors were higher on Friday, led by XLB and XLI.

SPY up 3.04 at 296.28 on 101.2 million shares, above average volume.  Up on higher volume.

VIX down 1.99 at 15.58

Oil up 1.05 at 54.91

TLT down 1.76 at 140.44 on 28.5 million shares.
GLD down .78 at 140.03

DOW, CAT, MMM led the DJIA, 26 advancers, +4

FCX, MOS, DLPH led the SPX, 416 advancers

FAST, WYNN, AMD, MU led the NDX, 95 advancers

Long term up trend intact.  3-day short term trend is up.

Up: IWM, QQQ, DIA, SPY,

Down:                                                                  

Breadth strengthened on Friday as advancers led 2,271 to 709 on the NYSE and led 2,295 to 776 on the NASDAQ

The SPX MFC green line is below 80 and is pointed up at 47 and is short-term bullish.

Uptrend sectors: XLU, XLRE, XLP, XLK,

Neutral sectors:  XLY, XLC, XLF, XLI, XLB, XLV,

Down trend sectors: XLE,

The 6-month intermediate trend is up.  The ten-day trend is sideways.

3-month Intermediate Term Market Trend: Sideways

3-day Short Term Market Trend: Up

95 of 100 NDX stocks closed higher on Friday.

58 NDX stocks are above their 30 DMA:  KLAC, AAPL, ASML, DLTR, CTXS, HAS, ROST, CTAS, ALGN, ULTA, ATVI, CELG, CHTR, NVDA, PEP, XRAY, CHKP, COST, LULU, ROST, SWKS, TSLA, AMAT, EXPE, FISV, ILMN, INTC, ISRG, LRCX, MSFT, ORLY, PAYX, TXN, AMGN, MCHP, NFLX, NXPI, SNPS, ULTA, WDAY, ADP, ADSK, ATVI, CERN, CMCSA, CSX, FAST, FB, GOOGL, HSIC, IDXX, INTU, MXIM, NTES, PCAR, SIRI, TMUS, WBA, WYNN,

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 19

ADP, ADSK, ATVI, CERN, CMCSA, CSX, FAST, FB, GOOGL, HSIC, IDXX, INTU, MXIM, NTES, PCAR, SIRI, TMUS, WBA, WYNN,

Moving Below 30 DMA = 2

MDLZ, UAL,

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