Three of nine sectors moved
higher on Friday…XLF, XLI and XLV were the strongest sectors…while XLK was the weakest sector.
Breadth strengthened
as advancers
led decliners…1.83 to
1 on the NYSE and 1.63 to
1 on the NASDAQ.
Friday – strengthened, advancers led
Thursday – weakened,
decliners led
Wednesday – New Year’s
Tuesday – strengthened,
advancers led
Monday – weakened,
decliners led
SPY down .03 at 182.89 volume 81 million shares, below avg. volume
VIX down .47 at 13.76…
TNX up .10 at 29.95…
TLT unchanged at 102.17...
XLF up .15 at 21.89 volume 24.7
million shares, below avg. volume
AAPL down 12.15 at 540.98 volume 14 million shares, above
avg. volume
FB down .15 at 54.56…volume 38.3 million shares, just 58% of avg. volume
Technical
Commentary:
IWM +0.51%,
DIA +0.17%, SPY -0.02%, QQQ -0.72%.
The
holiday shortened week finished with another below average volume day and the SPY’s
first lower weekly close since Friday, Dec 13.
The SPY was down a moderate 95 cents for the week. Small caps IWM bounced in a bull flag
pattern while QQQ finished lower for the second straight day.
Even
though the SPX was near unchanged VIX fell which is technically
positive for a potential trend continuation support bounce.
Overall the economic outlook continues to strengthen and Friday’s
technical evidence indicates that institutions are still net buyers although
rotational selling in stocks like AAPL, PCLN, NFLX, COST, PG and EBAY
was noticeable. Net buying for
the week continued in stocks like BBBY, AXP, DIS, GS, IBM, JPM, DTV, FOXA,
VIAB, INTC, STX, BIDU, CTXS, GMCR and WYNN.
Even
though the Euro continued to move lower on Friday, interest rates TNX
rose slightly, TLT bonds were unchanged and financial stocks were among
the leaders with gains in C, BAC, STT, JPM, WFC, GS, MS, and ETFC among
others.
Chart Signals is looking for a potential support bounce next week as markets head into the start of earnings season.
Trade with the trend, move your protective stops. Continue to follow your rules.
Remember it is big money
that creates and sustains the trend. As Granville wrote,
“technical analysis is the art of tracking the market, following the
footsteps of the ‘smart money’ crowd.
The ‘smart money crowd’ is no mysterious ‘THEY.’ It is simply a collection of people who are reading the market correctly,
seeing through the maze, unconfused by this hall of mirrors.”
Short-term
up trend Chart Targets:
SPY = 184.69, 186.06, 186.90…
QQQ = 87.79, 88.74…
IWM = 115.97, 116.70, 118.54…
Q4 earnings season unofficially starts next Thursday,
January 9
with the AA earnings release after
the close.
Tuesday – APOL, MU
Wednesday – BBBY, MON,
SCHN
Thursday – AA, FDO,
Q4 Earnings Reactions
Positive Reactions –
Negative Reactions –
The Market Forecast Green Line is above 80.
____________________
Setups
H Breakout: AAL,
BBRY, C, CREE, DAL, ESI, FAS, FSLR, GRPN, MFRM, NKE, SPLK, SCTY, STI, UAL, VECO,
YELP, YOKU, Z, ZION, ATVI, GILD, GRMN, STX,
Diagonal Breakout: ANR,
CMG, CRM, DNKN, KKD, QIHU, YNDX, ADBE, CELG, MU, WDC,
Bull Flag: A, ATI, CIEN, CLF, DRYS, GME, IBM, JCP, LVS,
NTES, RAX, RCL, SCSS, SFUN, SINA, SOHU, SPY, IWM, TIF, V, WLT, X, ADSK, AKAM, BIDU,
BRCM, CMCSA, CSCO, CTSH, FB, GMCR, GOOG, NFLX, QCOM, SNDK, TSCO, TSLA, TXN, WYNN,
XLNX, YHOO
(click image to enlarge)
Potential Bullish
Divergence: GOGO, TRIP,
Gap Up:
Gap Down:
Bear Flag:
At Support: LNKD, SWKS,
TLT, UNG, AAPL,
C- Pattern: ROST,
Moves
New Highs: BAC, BX, CSIQ, DDD, GLW, GS, JNPR, SSYS, SWI,
TPX, XONE, BBBY, DISH, DTV,
Gap Up:
Gap Down:
H Breakout: ALK, SPWR, TSL, UAL, XONE, VJET,
Diagonal Breakout: AAL, C, DAL,
Breakout Test: SCTY, VRSN,
Bounce: FSLR, TWTR, ATVI, GMCR, STX,
MACD Divergence
Bounce: ESI, FIVE, GLD, P, GRMN,
Bear Flag:
Support Break: EBAY, PCLN
______________________
33 out of 100 NDX
stocks closed higher on Friday.
Leading NDX 100 stocks included: GRMN, MXIM, STX, SIRI,
GMCR, YHOO, SPLS, ATVI, MNST, ADP
Lagging NDX stocks included: MU, VIP, GOLD, BIDU,
AAPL, ISRG, ILMN, SYMC, WFM, ALXN
Leading stocks > +2% on Friday
included: XONE, UAL, DAL, AAL, ESI, P, CSIQ, TSL, BX, DDD, TWTR, C
Lagging stocks < -2.0% included: MCP, ANGI, ANR, CLF, WLT, QIHU, SINA
Stocks to Watch on Monday
Holding Above 30 DMA= 72
CTSH, FISV,
INTU, WDC, GOOG, AMZN, ILMN, LLTC, EXPE, ADSK, ESRX, ALXN, MDLZ, MNST, YHOO, DISH,
SIAL, CELG, CMCSA, LBTYA, GMCR, DTV, STX, BIDU, BRCM, WYNN, FB, AVGO, INTC,
EQIX, TSLA, ORLY, NXPI, ADBE, AKAM, EBAY, VIAB, CA, CHKP, FFIV, LINTA, PCAR,
VOD, TSCO, SNDK, VRTX, XLNX, ADP, ATVI, CTXS, GILD, PAYX, ADI, CTRX, DISCA,
KRFT, FOXA, AMAT, KLAC, MAT, NVDA, SPLS, TXN, VIP, ALTR, BBBY, CSCO, SYMC, SBAC, CHTR, AMGN, DLTR, ROST
Moving Above 30 DMA = 3
ADI, HSIC, MXIM
Moving Below 30 DMA = 8
AAPL, BIIB, CHRW, EXPD,
ISRG, MU, QCOM, WFM
Staying Below 30 DMA
FAST, MYL, NFLX, NTAP, VRSK, PCLN, GRMN, MSFT, CERN, SRCL, TRIP,
COST, SBUX, LMCA, SIRI, REGN, GOLD
Sixteen Week
Intermediate Term Market Trend: Up
3-Day Short Term Market
Trend: Down/Neutral
