SPX Bounces at 38.2 % Fibonacci...Is it Hammer Time?

Monday, July 5, is a market holiday...so Friday's trading leads us into the three day weekend...

The SPX broke 1,030 support and fell o 1,010, the 38.2% Fibonacci retracement level off the March low, during the first 90 minutesof trading.  During the last five hours the SPX rose 20 points, a sign that buyers were stronger than sellers for most of the day.  By the end of the day the SPX formed a hammer along with a large number of individual stocks.

The VIX fell -1.68 to 32.86 and did not confirm the Thursday move down.  Other non-confirmations of the recent down trend was the EUR rising, the SOX rising and the TRAN rising.

The Jobs report is due out an hour before Friday's open.  If the jobs report is a little worse, as expected or better than expected The SPX is setup for a technical bounce.  If the report misses expectations by a large amount then sellers could be stronger than buyers in the morning.

Thursday is a Yellow Alert for bearish trades.  Tighten those stops and trade with the trend.



Many stocks formed a hammer on Thursday and are setting up potential entry signals

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

AAPL -3.05
QCOM -0.88
GOOG -5.46
BIDU +0.47
NDX 100 stocks stronger than the NDX include: NIHD, MRVL, FSLR, PCLN, ROST, URBN, NTAP, CMCSA, GRMN, RYAAY, APOL, FLEX, STX, DISH and YHOO.

Stocks weaker than the NDX: PPDI, WCRX, QCOM, KLAC, ESRX, CELG, CA, CEPH, LIFE, VRTX, GENZ, ILMN, XRAY, BIIB and HOLX.

Stocks to Watch on Friday
Holding Above 30 DMA
TLT, CHL, CRUS, HAS, NTRI, GMCR, HANS, ACN, FAZ
Moving Above 30 DMA = 3
HLF, TSL, UNG
Moving Below 30 DMA = 0

Staying Below 30 DMA
USO, AMX, AIV, BA, CAT, CLF, CMG, CRM, DE, DECK, DLR, FFIV, GR, HSY, LVS, MA, NETL, NFLX, NYX, SNDK, SWN, TIE, UCO, UNP, V, VECO, VMW, BUCY, FCX, GS, ICE,PCLN, SPG, URE, ZION, UAUA, A, AMD, MCD, LXK, ATI, CAM, DHR, DOW, MHS, PCP, USD, WHR, WLT, CREE, PNC, POT, WFMI, WMT, SWK, CSTR, ESI, BYI, STI, JEC, GME, FAS, FLS, PCP, ATW, BAC, GES, X, AGU, IPI, MOS

Intermediate Term Market Trend: Neutral
Short Term Market Trend: Down