Markets Drift Lower on Options Expiration Friday...

DJIA - 62.68, -0.75% SP500 - 10.19, -1.14% NASDAQ Comp. - 9.07, -0.54% Russell 2000 - 4.87, -1.01%

Exchange NYSE NASD Advancing 1,320 1,072 Declining 2,373 1,644 Oil $56.34 -$2.28 Gold $930.90 +$2.90 SOX 242.28 -2.10 VIX 33.12 +1.75 The VIX moved up and did confirm the move down in the SPX on Friday. Strongest Sectors: XLB +0.35%...XLI +0.05%...XLK +0.00% Weakest Sectors: XLU -2.37%...XLE -2.14%...XLF -2.04% Six of nine Sectors moved lower on Friday. Only Utilities, Energy and Financials were weaker than the SPX -1.14%. Financial stocks stronger than XLF: GS, MMC, AOC, TRV, USB, TROW, SCHW, MS, JPM, STT, C and AXP. Stocks weaker than XLF include: ZION, SPG, BAC, AFL, IVZ, PRU, ICE, ALL, MET, WFC, CB and PNC. Leading tech stocks stronger than XLK include: YHOO, MSFT, GOOG, TXN, EMC, QCOM, DELL, EBAY, IBM and HPQ. . Sector Watch Up Trending: Horizontal Breakout: XLB, XLK Sideways: XLY, XLE, XLV, XLF, XLP, XLI Down Trending: XLU

SPX Key resistance levels: 902 = Weekly R1 930 = horizontal 945 = 200 DMA Key support levels: 879 = weekly S2 869 = 30 DMA 866 = 61.8% Fib level

The SPX found support at the 882 level for the third straight day. Watch for range expansion on Monday which has recently been typical on the Monday after options expiration. The indices did not confirm the bullish harami patterns that formed on Thursday. Friday was the low day in the recent pull back. If Monday sees a support bounce watch for a break of the high of the low day. Index Commentary The DJIA formed a black spinning top that did not confirm Thursday’s bullish harami…stayed below horizontal resistance at 8,405…three month chart target 10,340…volume slightly below average at 308 million shares…closed above its 20, 30 and 50 DMA. The SPX black spinning top did not confirm Thursday’s bullish harami…small bounce off 20 DMA…3 month chart target of 1,075…closed above its 20, 30 and 50 DMA. The Nasdaq for the second straight day formed a bullish harami and bounced off its 30 DMA…it is below its 20 and 200 DMA…3 month chart target of 2,065…closed above its 30 and 50 DMA. The RUT formed an inside day that did not confirm Thursday’s bullish harami that closed below its 20 DMA and is right at its 30 DMA…3 month chart target 606…closed above its 50 DMA Look at these charts... (click image to enlarge)

Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, DLB, VPRT, CTSH, BAP, CAM, GMCR, ATW, GR, SYNA, EBAY, TRLG, FSLR, HDB, PCP, RIMM, WCG, UYG, HLF, AMX, MHS, FAS, AFAM, K, RBN, ESRX, PCLN, VAR, PCR, PPD, HANS, SWN, FLS, TDG, NIHD, RCI, STRA, ACN, AMED, JOYG, MON, MUR, PSYS, NTLS, CHL, DECK, MOS, DV, BDX, AXYS, BIIB, BYI, ESI Moving Above 30 DMA = 1 CPLA Moving Below 30 DMA = 4 PETS, SYNA, WAB, X Staying Below 30 DMA AAPL, CBST, GES, WRC, SNA, SNHY, SPWRA, WMT, URE, AMZN, EZPW, GXDX, JOSB, JW.A, JEC, MCD, PWR, DLTR, USD, DECK, ORCL, ALGT, JCOM, NFLX, GME, GILD, GPRO, MYGN, SLGN, BKC, APEI, BLUD Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral