Stocks Move Higher...Nasdaq Breaks Resistance...

DJIA + 119.23, +1.50% SP500 + 14.31, +1.68% NASDAQ Comp. + 42.08, +2.55% Russell 2000 + 12.12, +2.60% Exchange NYSE NASD Advancing 2831 1,983 Declining 876 776 Oil $51.55 +$2.70 Gold $913.60 +$7.40 SOX 253.65 +4.29 VIX 36.82 -0.89 The VIX moved down and did confirm the move up in the SPX on Friday. You may notice the move down in the VIX was very modest compared with the move up in the SPX. Some observers believe this is not confirming the SPX. Strongest Sectors: XLB +4.76%...XLE +2.90%...XLY +2.47% Weakest Sectors: XLP -0.42%...XLU -0.16%...XLV -0.13% Five of nine Sectors, Materials, Energy, Consumer Discretionary, Financials and Industrials outperformed the SPX. Financial stocks stronger than XLF +2.24% include AXP, KEY, ZION, PRU, WFC, PNC, SPG, MET, USB, BAC and ETF’s UYG and FAS. The Tech Sector XLK was up +1.42%. Leading tech stocks stronger than XLK +1.42%: MSFT, ADBE, MA CSCO, SYMC, TXN, DELL, HPQ, AMT, AMAT and QCOM. Check out these two SPDR Sectors and two SPDR Industry ETF's...they've been the strongest in this current rally... (click image to enlarge) Sector Watch Up Trending: Sideways: XLE, XLY, XLV, XLK, XLB Down Trending: XLF, XLP, XLI, XLU The SPX trended higher for most of Friday with two pullbacks late in the day, one occurring about two hours before the close and the last occurring in the last 10 minutes of the trading day. The first pullback represented essentially a 38.2 % Fibonacci retracement from Thursday’s late day low point that occurred around 3:15 pm ET. The SPX, DJIA and RUT are still below their April 17 resistance. The Nasdaq did break through its horizontal resistance on Friday creating a new short term price target of 1,765 and a time target of five days. Targets are not certainties, rather they are probabilities based on technical analysis measuring techniques. A one day pull back on Monday was followed by a piercing line bounce on Tuesday. The pullback on Monday and the piercing line bounce on Tuesday both found support at the 20 DMA. This indicates big money buying at the support level of the short term trend and continuation of the short term trend. The bounce was followed by two spinning top pause days on Wednesday and Thursday. Friday was another thrust day. You may have noticed this followed the technical price action pattern of one to two thrust days and one to two pause days that has been occurring during the past seven weeks. On Monday watch the open in relation to Friday’s close, if it is the same or higher and early trading continues higher, look for the SPX break its April 17 high and move to an 885 to 895 short term resistance area. Index Commentary The DJIA formed a formed a white candle that confirmed Thursday’s hammer like candle…volume was average at 402 million shares…closed above its 20, 30 and 50 DMA. The SPX formed a white candle that confirmed Thursday’s hammer like candle…closed above its 20, 30 and 50 DMA. The Nasdaq formed a white candle that confirmed Thursday’s dragonfly doji…broke through horizontal resistance of 1682…short term chart price target is 1,765…closed above its 20, 30 and 50 DMA. The RUT formed a white candle that did confirm Thursday’s hammer like candle…closed above its 20, 30 and 50 DMA Did you notice the big moves (5 to 10%) in several of our At the Open on Friday stocks? ISRG, SCHN, WYNN, AG, SHLD, ADS, LEAP At the Open on Monday SPY – white spinning top ALGT – bull flag RS – 200 DMA support bounce ICE – spinning top after hammer at 20 DMA XLNX – bullish harami/inside day AMGN – double bottom support bounce after earnings DECK – at support of 20 DMA SNDA – white candle confirms hammer EBAY – hanging man after earnings gap at 200 DMA GME - hanging man above 200 DMA SHLD – support bounce break above 200 DMA ADS – large white candle confirm dragonfly doji in bull flag AG – close above horizontal resistance LEAP – outside day support bounce at 50 DMA and 50% Fibonacci retracement level ISRG – large white candle continuation Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, ALGT, DLB, JEC, PWR, VPRT, AMZN, USD, AAPL, CTSH, AXYS, BAP, CAM, GMCR, JCOM, JOSB, ATW, GR, SYNA, EBAY, GES, SNA, ORCL, WRC, DECK, HDB, PCP, UYG, FSLR, GME, WCG, RIMM, X, BYI, CBST, EZPW, HLF, AMX, MHS, WAB, FAS, AFAM, CHL, JW.A, K, RBN, ESRX, PCLN, URE, VAR, PCR, PPD, HANS, SWN, FLS, SNHY, SPWRA, JOYG, GILD, GXDX, TDG, NIHD, RCI, STRA Moving Above 30 DMA = 2 CPLA, ACN Moving Below 30 DMA = 3 DLTR, NFLX, MCD Staying Below 30 DMA AMED, BDX, GPRO, PETS, CBST, MYGN, DV, MUR, SLGN, TDG, BIIB, MOS, NTLS, MON, WMT, GILD, BKC, APEI, BLUD, ESI, GXDX, PSYS Intermediate Term Market Trend: Neutral Short Term Market Trend: Up