Boy, Oh Boy, Oh Boy, What a Friday...

DJIA + 259.18, +3.09% SP500 + 30.85, +3.65% NASDAQ Comp. + 63.75, +4.41% Russell 2000 + 21.56, +4.91% Exchange NYSE NASD Advancing 2,619 1,965 Declining 1,204 849 Oil $40.81 -$2.86 Gold $750.50 -$13.30 SOX 192.56 +5.92 VIX 59.93 -3.71 Strongest Sectors: XLF +7.92%...XLK +3.94%...XLV +3.41% Weakest Sectors: XLU +0.64%...XLB +1.86%...XLE +2.08% Sector Watch Up Trending: Sideways: XLE, XLP, XLU Down Trending: XLF, XLY, XLV, XLI, XLB, XLK After giving back all of Wednesday's gains on the Thursday the market found support near Monday's lows and rallied over 500 Dow points to regain all of Thursday's drop and more. All sector ETFS moved higher on Friday with Financial, XLF, leading the way for the third time this week. The Retail Industry ETF, XRT, rose 7.10%, while AMZN pulled back and found support just above 43 before rising to 48. The DJIA, SPX, Nasdaq and RUT appeared to make higher lows this week. The DJIA closed in the middle of its 8-week trading range since the Oct. 10 low. Watch for a break above the Nov. 28 high on all four indices for confirmation of this week’s higher low. All fours indices appear to be on the verge of inverse head and shoulders breakouts. Watch for a breakout this next week. Check out our Stocks to Watch on Monday list. Oil and gold continued to fall on Friday. Index Commentary The DJIA first broke down out of its pennant pattern, reversed and broke out and closed above the pennant…closed above its 20 and 30 DMA…formed an outside day…bounced off of Monday’s support low and rallied over 500 points into the close...Friday was the highest close of the week. (click image to enlarge) ProphetCharts The SPX closed above its 20 DMA…formed an outside day…Friday was the highest close of the week. The Nasdaq closed above its 20 DMA…formed an outside day…broke out to the upside of its pennant pattern forming since Monday…Friday was the highest close of the week. The RUT closed above its 20 DMA…formed and outside day…closed just above the falling resistance line of its pennant forming since Monday…Friday was highest close of the week. Stocks to Watch on Monday Leading Stocks: Holding Above 30 DMA AXYS…AYE…DV…EZPW…PCLN…PPD…ASIA…BAP…CBST…DLTR…ESI…FLR…FSTR…TKC…JCOM…JEC…PCR…ATK…B…IRIS…MIG…RTN…SNA…TEVA…WMS…GILD...HAS…JOSB…URBN…AGN…AMZN…ROST (click image to enlarge) Moving Above 30 DMA ACL…AFAM…AIRM…AME…ANSS…BCR…BIIB…BYI…CL…DECK…ESRX…HDB…ICON…LFC…MCRS…NILE…PSSI (click image to enlarge) Moving Below 30 DMA None Staying Below 30 DMA MYGN…GIS…AMX…CERN…CHU……CHTT…DGIT…LAYN…NIHD…NOV…OSIP…RIO…SINA…SOHU…SWN…VMI…MMM…FLIR…PCP…PETS…SPTN…AAPL…AOB…CTSH…FWLT…IT…JW.A…MTD…PRGO…RCI…STRA…VIVO…WAB Friday’s Action Moving Up: MA, FSLR, STRA, POT, GS, SCHN, X, PNRA, NUE, CF, V, ESRX, PCLN, HANS, AFAM, ADM, CNX, ZION, COH, MON, CLF, KRE, UAUA, SOHU, NDAQ, KBE, MOS, FWLT, KMT, INFY, LCC, MS, IPI Moving Down: None Intermediate Term Market Trend: Neutral – DJIA, SPX, Down – Nasdaq, RUT Short Term Market Trend: Up