SPX Opens Flat...Ends Flat...

DJIA 10,850.36 +9.15 +0.08%
SP500 1,166.59 +0.86 +0.07%
COMPQ 2,395.13 -2.28 -0.10%
Russell 2000 678.97 -0.13 -0.13%

Exchange NYSE NASD
Advancing 1,537 1,315
Declining 1,496 1,362

Oil $80.00 -0.53
Gold $1,100.90 +8.00
SOX 362.89 -1.94
VIX 17.77 -0.63

Index Direction Confirmation
VIX Down Yes – SPX
SOX Down Yes – COMPQ

Strongest Sectors: XLB +0.75%…XLY +0.39%...XLI +0.26%
Weakest Sectors: XLV -0.75%...XLK -0.48%...XLE +0.04%

Seven of nine sectors moved higher on Friday. Materials, Consumer Discretionary, Industrials, Utilities and Financials were stronger than the SPX +0.07%.

Sector Watch
Up Trending: XLY, XLI, XLP
Horizontal Breakout: XLF
Sideways: XLK, XLB, XLE, XLU, XLV
Down Trending:

Key Resistance Levels
1,178 = Fib extension
1,216 = Fib extension
Key Support Levels
1,155 = 1,119 BO chart target – Dec 23
1,145 = 1,133 BO chart target – Dec 31 Low

The broad indices were near unchanged on Friday after trading in a narrow range following the support bounce on Monday and Tuesday. One interesting observation in Friday’s trading action. The COMPQ was down slightly with the NDX up slightly. This small divergence was likely caused by strength in AAPL, RIMM, AMZN, BIDU, AMGN and a few other leading NDX stocks. Looks like institutions were doing end of quarter buying in a few of the first quarter winners.

Look at these Charts

(click image to enlarge)

Here’s a look at the YTD chart in the broad indexes on a weekly candle.

(click image to enlarge)

Going into next week, I like the setups on BBY, ADBE and QCOM with gaps this past week.

Guidance:

The SPX closed at 1,166.59 a non-confirmation of Thursday’s potential shooting star pattern while forming a spinning top with a lower high and lower low. This is not unusual in the narrow trading range of the past 8 days.

Short term traders are still on Yellow Alert for a potential exit from the short term up trend only if price breaks support.

Continue to trade with the trend. Be mentally flexible and watch for a potential counter trend pull back if the chart breaks short term support.

The chart target is still 1,255 in approximately nine weeks after the 1,150 breakout on March 16.

The VIX fell -0.63 and did confirm the slightly higher close on Friday.

The short term trend is neutral.
The four-month trend is up.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch trade with the trend and follow your rules.

Adjust your stops according to your rules for up and down trending trades.

AAPL +4.25
QCOM -0.36
GOOG -0.19
BIDU +4.39
NDX 100 stocks stronger than the NDX include FSLR, RYAAY, GENZ, URBN, WYNN, GRMN, RIMM, LOGI, AAPL, SBUX, ERTS, ATVI, YHOO, PPDI, SPLS, LBTYA, DELL, STLD, BIDU, ADP, AKAM, PCAR, FAST, PAYX, JOYG, ILMN, AMAT, NTAP, EXPE, AMGN, AMZN, DTV, FISV, BBBY and NWSA.

Stocks to Watch on Monday
Holding Above 30 DMA
CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, ATI, WAB, GS, DOW, AMD, AMX, WFC, ACN, CEDC, MA, ZION, BKC, MCD, ALGT, GME, WCG, K, STT
Moving Above 30 DMA = 3
FCX, IPI, TSL
Moving Below 30 DMA = 0

Staying Below 30 DMA
AMED, MOS, PWRD, USO, CHL, CAM, ATW, SYNA, CGA, FUQI, HEAT, SWN, BYI, FAZ, UNG, MON

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral