Only two stocks in the NDX 100 closed higher. FSLR dropped another $4.54 increasing the straddle value to 29.10 from $25.25 on Thursday increasing the gain to 27% in two days.
In our Stocks to Watch list only FAZ, PSYS, ALGT, VPRT, BYI, PETS, RCI, STRA, BDX, K, DLB and GXDX higher, every other stock moved lower. Also 19 stocks fell below their 30 DMA leaving just 18 stocks above their 30 DMA on Friday.
Guidance: The intermediate term trend is still up while the short term trend turned back down from neutral. The broad indices reversed making a lower low in their bull flag patterns. Downward momentum reaccelerated and upward momentum disappeared on Friday.
In Friday morning’s post we wrote, “The short term trend is neutral in a bull flag pattern.
Watch for Momentum to stay above:
SPX 1,056
INDU 9,822
COMPQ 2,081
RUT 576”
Obviously price did not stay above the stated levels and as such alerted us to be prepared for a drop to the next level of support.
Going into the new week it is realistic to be looking for a slow down in downward momentum and support bounce of some magnitude. If a stock you are trading is above its 20, 30 or 50 DMA and stays above that level and a recent horizontal breakout level, then expect its up trend to continue. If a stock has fallen below its 30 or 50 DMA and is unable to get back above that level on any support bounce during next week, realize the stock could be shifting to a sideways trading range or a potential down trend. Continue to trade the chart of the stocks you watch and follow your rules.
AAPL -7.85
QCOM -0.94
GOOG -14.93
BIDU -15.48
NDX 100 stocks stronger than the NDX include: DTV, CEPH, WCRX, IACI, CELG, INTC, TEVA, HSIC, RYAAY, CHKP, VRTX, SYMC, GILD, PAYX, BRCM ORLY, SRCL, ADP, LINTA, AMGN, ROST, PPDI, YHOO, CTAS, FISV, ORCL, ESRX, MSFT, ADBE, APOL, COST, DISH, GENZ, GRMN and ALTR.
Stocks to Watch on Monday
Leading Stocks
Holding Above 30 DMA
K, JW.A, DECK, VPRT, AMZN, SLGN, NFLX, DV, MCD, ICE, MUR, DLB, FAZ, RCI, ESRX, MHS, WCG, SNA
Moving Above 30 DMA = O
Moving Below 30 DMA = 19
AAPL, ATW, BLUD, CLB, CPLA, CTSH, FLS, GES, GPRO, HANS, HDB, ORCL, RBN, SWN, VAR, ACN, GR, JOYG, WMT
Staying Below 30 DMA
AFAM, BKC, BYI, EZPW, GXDX, HLF, JEC, PCLN, STRA, WAB, TRLG, PWRD,
AMED, AMX, BIDU, CAM, FSLR, GMCR, APEI, MOS, PCP, PWR, WRC, NIHD, JOSB, TDG, SPWRA, FAS, UYG, ESI, ALGT, EBAY, BAP, CHL, GILD, URE, USD, DLTR, GME, SNHY, URE, PETS, MON, X, PSYS, NTLS, PPD, BDX, BIIB, JCOM, FUQI, CBST, RIMM, MYGN, SYNA
Intermediate Term Market Trend: Up
Short Term Market Trend: Down
Friday, October 30, 2009
SPX Reverses, Breaks 1,044 Support...
DJIA - 249.85 -2.51%
SP500 - 29.92 -2.81%
COMPQ - 52.44 -2.50%
Russell 2000 - 17.45 -3.01%
Exchange NYSE NASD
Advancing 406 516
Declining 2,660 2,220
Oil $79.87 -2.87
Gold $1,040.40 -6.70
SOX 296.61 -10.65
VIX 30.69 +5.93
The VIX moved up and did confirm the move down in the SPX on Friday. The SOX moved down and did confirm the move down in the COMPQ.
Strongest Sectors: XLV -1.44%...XLP -1.56%...XLU -1.87%
Weakest Sectors: XLF -4.68%...XLE -3.80%...XLB -3.58%
All nine sectors moved lower on Friday. Healthcare, Consumer Staples, Utilities, Consumer Discretionary and Technology were stronger than the SPX -2.81%.
Financial stocks stronger than XLF -4.68%: SPG, IVZ, NTRS, CME, SCHW, WFC, CB, ALL, AFL, TRV, USB, AXP and MS.
Tech stocks stronger than XLK -2.65%: INTC, SYMC, ADP, YHOO, VZ ORCL, MSFT, ADBE, IBM, HPQ, TXN, T and QCOM.
Sector Watch
Up Trending: XLK, XLB, XLY, XLV, XLP, XLE
Horizontal Breakout: XLF, XLI, XLU
Sideways:
Down Trending:
Key Resistance Levels:
1,044 = October Horizontal Old Resistance
1,056 = Sep 25 R1 level
1,061 = Sep 16 S1 Level
1,075 = 875 Breakout Chart Target
Key Support Levels
1,025 = 950 Breakout Chart Target
The SPX and other broad indices sold off on Friday on above average volume giving back all of Thursday’s gain and then some to close below Wednesday’s low. Thursday’s support bounce failed to follow through and may have triggered some stops on Friday.
The dollar gained strength as the Euro, stocks, oil and gold fell.
Support areas are areas where buyers and sellers fight for control. Sometimes support bounces are clean and sometimes they come back. This time the fight was not over in one day.
(click image to enlarge)
Only two stocks in the NDX 100 closed higher. FSLR dropped another $4.54 increasing the straddle value to 29.10 from $25.25 on Thursday increasing the gain to 27% in two days.
In our Stocks to Watch list only FAZ, PSYS, ALGT, VPRT, BYI, PETS, RCI, STRA, BDX, K, DLB and GXDX higher, every other stock moved lower. Also 19 stocks fell below their 30 DMA leaving just 18 stocks above their 30 DMA on Friday.
Guidance: The intermediate term trend is still up while the short term trend turned back down from neutral. The broad indices reversed making a lower low in their bull flag patterns. Downward momentum reaccelerated and upward momentum disappeared on Friday.
In Friday morning’s post we wrote, “The short term trend is neutral in a bull flag pattern.
Watch for Momentum to stay above:
SPX 1,056
INDU 9,822
COMPQ 2,081
RUT 576”
Obviously price did not stay above the stated levels and as such alerted us to be prepared for a drop to the next level of support.
Going into the new week it is realistic to be looking for a slow down in downward momentum and support bounce of some magnitude. If a stock you are trading is above its 20, 30 or 50 DMA and stays above that level and a recent horizontal breakout level, then expect its up trend to continue. If a stock has fallen below its 30 or 50 DMA and is unable to get back above that level on any support bounce during next week, realize the stock could be shifting to a sideways trading range or a potential down trend. Continue to trade the chart of the stocks you watch and follow your rules.
AAPL -7.85
QCOM -0.94
GOOG -14.93
BIDU -15.48
NDX 100 stocks stronger than the NDX include: DTV, CEPH, WCRX, IACI, CELG, INTC, TEVA, HSIC, RYAAY, CHKP, VRTX, SYMC, GILD, PAYX, BRCM ORLY, SRCL, ADP, LINTA, AMGN, ROST, PPDI, YHOO, CTAS, FISV, ORCL, ESRX, MSFT, ADBE, APOL, COST, DISH, GENZ, GRMN and ALTR.
Stocks to Watch on Monday
Leading Stocks
Holding Above 30 DMA
K, JW.A, DECK, VPRT, AMZN, SLGN, NFLX, DV, MCD, ICE, MUR, DLB, FAZ, RCI, ESRX, MHS, WCG, SNA
Moving Above 30 DMA = O
Moving Below 30 DMA = 19
AAPL, ATW, BLUD, CLB, CPLA, CTSH, FLS, GES, GPRO, HANS, HDB, ORCL, RBN, SWN, VAR, ACN, GR, JOYG, WMT
Staying Below 30 DMA
AFAM, BKC, BYI, EZPW, GXDX, HLF, JEC, PCLN, STRA, WAB, TRLG, PWRD,
AMED, AMX, BIDU, CAM, FSLR, GMCR, APEI, MOS, PCP, PWR, WRC, NIHD, JOSB, TDG, SPWRA, FAS, UYG, ESI, ALGT, EBAY, BAP, CHL, GILD, URE, USD, DLTR, GME, SNHY, URE, PETS, MON, X, PSYS, NTLS, PPD, BDX, BIIB, JCOM, FUQI, CBST, RIMM, MYGN, SYNA
Intermediate Term Market Trend: Up
Short Term Market Trend: Down
Only two stocks in the NDX 100 closed higher. FSLR dropped another $4.54 increasing the straddle value to 29.10 from $25.25 on Thursday increasing the gain to 27% in two days.
In our Stocks to Watch list only FAZ, PSYS, ALGT, VPRT, BYI, PETS, RCI, STRA, BDX, K, DLB and GXDX higher, every other stock moved lower. Also 19 stocks fell below their 30 DMA leaving just 18 stocks above their 30 DMA on Friday.
Guidance: The intermediate term trend is still up while the short term trend turned back down from neutral. The broad indices reversed making a lower low in their bull flag patterns. Downward momentum reaccelerated and upward momentum disappeared on Friday.
In Friday morning’s post we wrote, “The short term trend is neutral in a bull flag pattern.
Watch for Momentum to stay above:
SPX 1,056
INDU 9,822
COMPQ 2,081
RUT 576”
Obviously price did not stay above the stated levels and as such alerted us to be prepared for a drop to the next level of support.
Going into the new week it is realistic to be looking for a slow down in downward momentum and support bounce of some magnitude. If a stock you are trading is above its 20, 30 or 50 DMA and stays above that level and a recent horizontal breakout level, then expect its up trend to continue. If a stock has fallen below its 30 or 50 DMA and is unable to get back above that level on any support bounce during next week, realize the stock could be shifting to a sideways trading range or a potential down trend. Continue to trade the chart of the stocks you watch and follow your rules.
AAPL -7.85
QCOM -0.94
GOOG -14.93
BIDU -15.48
NDX 100 stocks stronger than the NDX include: DTV, CEPH, WCRX, IACI, CELG, INTC, TEVA, HSIC, RYAAY, CHKP, VRTX, SYMC, GILD, PAYX, BRCM ORLY, SRCL, ADP, LINTA, AMGN, ROST, PPDI, YHOO, CTAS, FISV, ORCL, ESRX, MSFT, ADBE, APOL, COST, DISH, GENZ, GRMN and ALTR.
Stocks to Watch on Monday
Leading Stocks
Holding Above 30 DMA
K, JW.A, DECK, VPRT, AMZN, SLGN, NFLX, DV, MCD, ICE, MUR, DLB, FAZ, RCI, ESRX, MHS, WCG, SNA
Moving Above 30 DMA = O
Moving Below 30 DMA = 19
AAPL, ATW, BLUD, CLB, CPLA, CTSH, FLS, GES, GPRO, HANS, HDB, ORCL, RBN, SWN, VAR, ACN, GR, JOYG, WMT
Staying Below 30 DMA
AFAM, BKC, BYI, EZPW, GXDX, HLF, JEC, PCLN, STRA, WAB, TRLG, PWRD,
AMED, AMX, BIDU, CAM, FSLR, GMCR, APEI, MOS, PCP, PWR, WRC, NIHD, JOSB, TDG, SPWRA, FAS, UYG, ESI, ALGT, EBAY, BAP, CHL, GILD, URE, USD, DLTR, GME, SNHY, URE, PETS, MON, X, PSYS, NTLS, PPD, BDX, BIIB, JCOM, FUQI, CBST, RIMM, MYGN, SYNA
Intermediate Term Market Trend: Up
Short Term Market Trend: Down
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6 comments:
This move was really unexpected given all the bullish haramis and bullish engulfing patterns yesterday! Was there any indication of today's downward move? Did I miss something??
Hi Dave looking forward to Friday's post. Thanks for all you do.
I too, like Winona, am wondering if there was any indication of Friday's move. It caught me totally off guard...after all my bullish entries on Thurs!
Dave, could the lack of volume on both the indices and most of the stocks on Thursday be used as a sign to forecast possible bearish reversal on Friday due to lack of instuitional fund manager support?
This is great direction, thanks Dave.
Great post Dave..
Thank you very much!
Laney
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