Spinning Top on Friday...

DJIA + 5.90, +0.07% SP500 + 4.30, +0.50% NASDAQ Comp. + 2.63, +0.16% Russell 2000 + 5.49, +1.16% Exchange NYSE NASD Advancing 2,442 1,709 Declining 1,277 1,068 Oil $50.33 +$0.35 Gold $867.80 -$12.00 SOX 254.81 +0.31 VIX 33.94 -1.85 The VIX moved down and did confirm the move up in the SPX on Friday. Strongest Sectors: XLF +1.28%...XLY +1.21%...XLE +1.17% Weakest Sectors: XLK -0.18%...XLU -0.15%...XLI -0.05% The Sectors were mixed on Friday with six moving slightly higher and three moving lower. XLF led all sectors with a modest gain. Financial stocks stronger than XLF, +1.28% include: ZION, RF, AFL, PNC, AXP, KEY, SPG, MS, WFC, USB, AOC, BAC, TROW, ICE, MET and ETF’s UYG and FAS. The Tech Sector XLK was the weakest sector down a modest -0.18%. Leading tech stocks stronger than XLK at -0.18%: DELL, AAPL, GLW, ADBE, SYMC, TXN, GOOG, MA, AMAT, VZ, EBAY, T and IBM. The SOX barely made a new high close while failing to make a new intraday high as horizontal resistance held. Sector Watch Up Trending: Sideways: XLE, XLY, XLV, XLK, XLB Down Trending: XLF, XLP, XLI, XLU No, No, No...Not Again... Yes, once again... It's time for...Another...Yellow Alert... The major indices on Friday finished six consecutive weeks up for the first time since 2007 completing a V Bottom formation off the low of March 6. Last Thursday, April 9, in the Weekly Wrap Dave pointed out that the chart with the SPX breakout that day indicated an SPX target over the next six trading days of 875. Yes, the session is recorded. On Friday, April 17, the SPX hit an intraday high of 875.63. Target achieved. For the skeptics, yes, yes, we know, it's only an accident. Friday’s Spinning Top is clear indication that Wednesday and Thursday’s upward momentum is at least pausing. Remember upward momentum will slow down as the first step to reversing. The combination of the achievement of a short term breakout price target, a spinning top on Friday, a 100% retracement of the February sell off, the failure of SOX to break horizontal resistance and the trading pattern of one to two strong days and then one to two pause days gives us a Yellow Alert for Monday. The key positive for Friday was the VIX making a new low close. Once again the question becomes, is this simply a pause that refreshes or a short term move to the downside? Short term traders should once again watch for a break of the low of the high day on Monday which is a potential exit signal for short term bullish trades. Take a look at Friday's SPX chart. What candle pattern is formed on Friday? What does it tell you about momentum? (click image to enlarge) Index Commentary –Yellow Alert The DJIA formed a doji…volume increased to 537 million shares…closed above its 20, 30 and 50 DMA. The SPX formed a white spinning top…potentially the second candle in an evening star pattern…closed above its 20, 30 and 50 DMA. The Nasdaq formed a white spinning top …closed above its 20, 30 and 50 DMA. The RUT formed a white spinning top…closed above its 20, 30 and 50 DMA At the Open on Monday SPY – white spinning top DECK – large white candle…hit 66 – 67 price target SNDA – large black candle CTSH – doji EBAY – hammer in bull flag SCHN – white spinning at 200 DMA GME – large black candle…shadow bounce on 30 DMA SHLD – white candle breakout of 200 DMA GS – spinning top XRT – hanging man USD – potential bearish harami URE – white spinning top WYNN – black spinning top at horizontal resistance CELG – black spinning top LEAP – confirmed tombstone doji breaks low of high day FAZ – black spinning top ISRG – large white candle Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA BIDU, CLB, NFLX, DLTR, ICE, ALGT, DLB, JEC, PWR, VPRT, AMZN, USD, AAPL, CTSH, FLS, JOYG, AXYS, BAP, CAM, GMCR, GPRO, JCOM, JOSB, MUR, ATW, GR, SLGN, SYNA, SNHY, EBAY, GES, SNA, ORCL, WRC, DECK, HDB, PCP, UYG, FSLR, GME, WCG, RIMM, X, BDX, BYI, CBST, EZPW, HLF, MYGN, AMX, MHS, WAB, FAS, AFAM, CHL, JW.A, K, RBN, ESRX, PCLN, URE, AMED, VAR, PCR, PPD, MON, NIHD, SPWRA, HANS, PETS, STRA, SWN, TDG, MCD Moving Above 30 DMA = 2 CPLA, DV Moving Below 30 DMA = 4 BIIB, MOS, NTLS, RCI Staying Below 30 DMA WMT, GILD, BKC, APEI, BLUD, ESI, GXDX, ACN, PSYS Intermediate Term Market Trend: Neutral Short Term Market Trend: Up