SPX Breaks the Low of the High Day with Bearish Candle...

DJIA              10,271.21    -144.33   -1.39%
SP500             1,075.63      -18.53   -1.69%
COMPQ           2,178.95     -36.75   -1.66%
Russell 2000       610.96     -17.08   -2.72%

Exchange     NYSE     NASD
Advancing       558         515
Declining      2,466      2,141

SOX      326.42    -5.68
VIX         26.44   +1.85

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

Leading stocks on Thursday included NTES, FAZ, NFLX, NTRI, GES, ESI, POT, PCLN, HANS, VMW

The SPX broke the low of the high day after the jobs claims report was higher than expected.  A few stocks like NFLX and PCLN rose.  NTES rose after a strong earnings report  Decliners led Advancers 4.4 to 1 on the NYSE.

The SPX fell to its 1,071 support level Thursday when buyers stepped in causing a support bounce to its close at 1,075.  Remember if support breaks, the index is likely to fall to its next support level at 1,056.

CRM rose +7.59, +7.87% following its earnings report after the close.

Guidance:SPX

Resistance: 1,086, 1,100, 1,115
Support: 1,071, 1,056, 1044

Wait to enter up trending stocks until a new bounce off support and a break above the high of the low day occurs.

Thursday was the break of the low of a high day to enter new bearish trades as we alerted you to watch for in Tuesday’s guidance

The VIX rose +1.85 to 26.44 confirming Thursday’s move down and rising above the benchmark 25 level.

The short term 3 day trend is neutral.
The two-month trend is neutral.
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 of the chart and follow your rules.

AAPL -3.19 – bearish engulfing
QCOM -0.93 – black candle breaks low of high day
GOOG -14.18 – large black candle breaks support
BIDU -1.73 –black candle pullback continuation

NDX 100 stocks stronger than the NDX include: SYMC, NVDA, NTAP, AKAM, EBAY, CHKP, PCLN, VRSN, LOGI, HANS and ATVI.

Stocks weaker than the NDX: SHLD, WYNN, FAST, SPLS, INTC, NIHD, FLIR, GOOG, PCAR, NWSA, VRTX, PPDI, FLEX, AMGN and BIIB

Stocks to Watch on Friday

Holding Above 30 DMA
TLT, GMCR, HANS, BUCY, CAT, HLF, PCLN, AGU, MCD, DE, IPI, MOS, POT, FCX, FLS, GES, PCP, WLT, X, CHL, CLF, FFIV, GR, LVS, SPG, HAS, LXK, MA, NFLX, FAZ, VMW, CMG, CSTR, A, BYI, UNP, TSL
Moving Above 30 DMA = 0


Moving Below 30 DMA = 13
AMX, CAM, CRM, FLS, GME, GS, MA, NYX, RMBS, SNDK, SWK, URE, WMT
Staying Below 30 DMA
BA, CRUS, ACN, AIV, AKS, ATI, CREE, DECK, DHR, DOW, FAS, SNDK, STI, TIE, UAUA, UCO, USO, V, DLR, ICE, USD, PNC, SWN, ZION, UNG, VECO, WFMI, NETL, SKX, AMD, JEC, NTRI, ESI, HSY, BAC, MHS, WHR

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