SPX Moves Back to Support...

DJIA                           11,008.61   -158.71 -1.41%
SP500                          1,186.69     -20.09 -1.66%
COMPQ                        2,461.19    -50.73 -2.02%
Russell 2000                   716.60    -21.14 -2.87%

Exchange                  NYSE             NASD
Advancing                     767                615
Declining                    2,311             2,134

Oil         $86.25         +1.08
Gold    $1,180.10      +11.70
SOX      376.07         -17.90
VIX          22.05        +3.61

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

Key Resistance Levels

1,200 = Jul 2008 support
1,216 = Fib extension
Key Support Levels

1,178 = Fib extension
1,155 = 1,119 BO chart target – Dec 23

The SPX moved lower on Friday while staying above its low of 1,181 on Tuesday and Wednesday.  All four broad indices closed higher in April for the third consecutive month, even though they closed lower for the week ending April 30.

The SPX, INDU and COMPQ all stayed above this week's support and formed mini head and shoulder patterns. The SPX mini pattern has a measuring of 35 points and a target of 1,145 if support is broken.

Look at these Charts

(click image to enlarge)

On Thursday we pointed out bull flag bounces on SPY, DIA, QQQQ and IWM. All four pulled back. Only IWM moved below Tuesday's low, which is the recent low day.

Additionally the bounce in the bull flag patterns on Thursday pulled back on Friday and stayed above Tuesday's low in ACN, BA, BYI, CRM, DHR, GR, MCD, NFLX, PCLN, SPG, UNP, URE, WFC, WHR and ZION. Only CAT, FLS, PCP and SWK dropped below their low on either Tuesday or Wednesday. FLS and PCP report earnings this next week.
BYI, WFC, ZION and PNC were relatively strong in their bull flag pattern on Friday.

Look at these Charts

(click image to enlarge)

Guidance:

Upward momentum failed on Friday and downward momentum was strong. For the most part bull flag support bounces failed to follow through although many did not fall below a short term stop below the low of this week's low.

The SPX moved toward its 1,178 support level. If this support level breaks on Monday be prepared for a potential move to the next support level of 1,155.

Continue to trade with the trend. Be mentally flexible and be willing to trade when your entry and exit signals appear.

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

The VIX rose +3.61 and did confirm the move down on Friday.

The short term trend is neutral and near support.

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.

Continue to adjust stops according to your rules.

AAPL -7.55

QCOM -0.30

GOOG -6.30

BIDU -20.91

NDX 100 stocks stronger than the NDX include: WCRX, SRCL, HOLX, CELG, TEVA, EXPD, MICC, INTU, BIIB, NIHD, PPDI, DISH, ORCL, COST, CHKP, APOL, LBTYA, HANS, QCOM, SIAL, DTV, VRSN and CEPH.

Stocks to Watch on Monday

Holding Above 30 DMA

NFLX, WHR, UNP, CAT, URE, DHR, JEC, CRM, SNDK, FLS, ZION, MCD, GME, TSL, BYI, SYNA, ATW, SWK, ACN, HLF, ICE, PCLN, PCP, SPG, DECK, GR, HANS, DOW, UAUA, WFC, AMX, MYGN, USO

Moving Above 30 DMA = 0

Moving Below 30 DMA = 11

AMD, BA, BAC, BKC, CREE, FAS, GES, MA, USD, UYG, V

Staying Below 30 DMA

CAM, CHL, SWN, UNG, ATI, FAZ, DE, BUCY, WLT, CLF, MHS, WCG, ESI, GMCR, GS, FCX, X, WMT, PWRD, AGU, IPI, POT, MOS

Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral