Markets Pull Back...Financials Up in After Market...

DJIA - 102.43, -1.20% SP500 - 12.14, -1.32% NASDAQ Comp. - 42.86, -2.44% Russell 2000 - 12.15, -2.41% Exchange NYSE NASD Advancing 1,322 912 Declining 2,430 1,864 Oil $56.71 +$0.37 Gold $915.00 +$4.50 SOX 254.55 -16.06 VIX 33.44 +0.99 The VIX moved up and did confirm the move down in the SPX on Thursday. Except for Tuesday and Wednesday, today’s close on the VIX is still its lowest level since September 19, 2008. Strongest Sectors: XLV +2.03%...XLU +0.52%...XLP +0.40% Weakest Sectors: XLK -3.82%...XLB -3.28%...XLF -2.88% Six of nine Sectors moved lower on Thursday. Healthcare, Utilities, Consumer Staples and Energy were stronger than the SPX -1.32%. Financial stocks stronger than XLF -2.88% include: PRU, ALL, BAC, ZION, AFL, C, CB, MET, and ICE. Stocks significantly weaker include: KEY, RF, USB, WFC, CME, MME, PNC, TROW, SCHW, NTRS, JPM, SPG, MS, IVZ, AXP and GS. Leading tech stocks stronger than XLK, -3.82% include: YHOO, ADP, MA, GOOG, IBM, INTC, MSF, EBAY, AAPL, ADBE, VZ, QCOM, ORCL, CSCO, EMC and AMT. Stocks weaker include: SYMC, DELL, GLW, AMAT, HPQ, T and TXN. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY Sideways: XLE, XLV, XLF, XLP, XLI Down Trending: XLU Wednesday’s Yellow Alert for short term traders turned red on Thursday as the Nasdaq, SOX and RUT all three broke below the low of the high day. This can be an exit signal for short term bullish trades and potential short term counter trend entry signal. Technology, Materials and Financial stocks led the market lower on Thursday. The DJIA and SPX essentially gave back Wednesday’s gains and closed near Tuesday’s close. The Nasdaq, SOX and RUT which were positive but relatively weaker than the SPX and DJIA on Wednesday, took it in the shorts on Thursday. In after hours trading Financial stocks were higher: FAS +0.88, UYG +0.22, XLF +0.33, BAC +1.21, and STT +3.26. If this holds overnight financial and other stocks could be on the rise again Friday morning continuing the the pattern of one to two days thrust to one to two days pause, with Thursday being a pause day. SYMC which announced earnings Wednesday evening, fell on Thursday after reporting lower than expected revenues and received a downgrade from an analyst at Jefferies who thinks SYMC is losing market share. SYMC sold off almost 15% on 66 million shares, over three times average volume of 18.6 million shares as the largest declining stock in the NDX. Index Commentary The DJIA…dark cloud cover outside day closed above horizontal resistance at 8,405…three month chart target 10,340…volume above average at 476 million shares…closed above its 20, 30 and 50 DMA. The SPX…dark cloud cover outside day…3 month chart target of 1,075…closed above its 20, 30 and 50 DMA. The Nasdaq formed a bearish engulfing outside day black hanging man closing below its 200 DMA…failed to achieve short term chart price target of 1,765…3 month chart target of 2,065…closed above its 20, 30 and 50 DMA. The RUT formed a bearish engulfing outside day …3 month chart target 606…closed above its 20, 30 and 50 DMA At the Open on Friday SPY – bearish engulfing…up in after hours WYNN – black candle confirms bearish harami in bull flag SCHN – bearish engulfing KOL – dark cloud cover MEE – bearish engulfing SNDA – black spinning top confirms shooting star ADBE – black candle confirms hanging man EBAY – bearish engulfing SHLD – bearish engulfing ISRG – black spinning top, new high close DHR – bearish engulfing DE – bearish engulfing RIMM – bearish engulfing SPG – bearish harami QLD – bearish engulfing FAS – dark cloud cover…up in after hours Stocks to Watch on Friday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, DLB, PWR, VPRT, AMZN, USD, AAPL, CTSH, AXYS, BAP, CAM, GMCR, JOSB, ATW, GR, SYNA, EBAY, GES, SNA, WRC, HDB, PCP, UYG, FSLR, WCG, RIMM, X, BYI, CBST, HLF, AMX, MHS, WAB, FAS, AFAM, JW.A, K, RBN, ESRX, PCLN, URE, VAR, PCR, PPD, HANS, SWN, FLS, SNHY, TDG, NIHD, RCI, STRA, ACN, AMED, EZPW, JOYG, MON, MUR, PSYS, SPWRA, NTLS, CHL, DECK, MOS Moving Above 30 DMA = 2 DLTR, GXDX Moving Below 30 DMA = 4 DECK, JEC, ORCL, SYNA Staying Below 30 DMA ALGT, JCOM, NFLX, PETS, GME, CPLA, GILD, GPRO, MCD, BDX, CBST, MYGN, DV, SLGN, BIIB, WMT, BKC, APEI, BLUD, ESI Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral