Thursday, September 23, 2010

SPX Bull Flag Pull Back Day 3...

All four of the broad indexes pulled back for the third day in a bull flag price pattern...
(click image to enlarge)
Exchange     NYSE     NASDAQ
Advancers      904            882
Decliners     2,118         1,726

 (click image to enlarge)
Index     Direction     Confirmation
VIX          Up               Yes – SPX
SOX         Up               No – COMPQ

Leading stocks on Thursday included FAZ, MHS, CSTR, SINA, NFLX, AMD, CREE, NTES, FFIV, MOS, ESI, UNG, RVBD, USD, AMX, CMG, GES, V, UCO, ACN, CAM, PNC, TLT, HANS, USO, SWN

Losing stocks included FAS, URE,IPI, X, AKS, AIV, LVS, ATI, AGU, FLS, BUCY, SPG, SWK, ZION, STI, GS, BYI, BA, FDX, WLT, GR, PCP, BAC, CLF, HLF, UNP, ICE, UPS, DLR, DOW, SNDK, DHR, VMW, JEC, DE, NETL, LXK, UAUA, CRM, WHR, ATW, NYX, WFMI, VOD

NFLX moved to its 160 price target.

Bull Flag Setups for Friday:  RVBD, LXK, DE, CRM, AGU, AKAM, BUCY, CMG, DHR, FFIV, GES, GMCR, HLF, JOYG, NTAP, PCLN, PCP, SINA, SPG. TSL, VOD, VMW
(click image to enlarge)
SPX
Resistance: 1,148, 1,170
Support: 1,130, 1,115, 1,100

The SPX pulled back for the third straight day.

Enter bullish trades with a bounce off support and a break above the high of the low day as many up trending stocks are in two day bull flags right now.

Exit short term trades according to your rules with a break below the low of the high day. Wait on bearish entry signals for a bounce down from resistance or a break of the low of the high day.

The VIX rose +1.36 to 23.87, and is still below the 25 benchmark level.

The short term 3 day trend is down.
The three-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 +1.17 – potential shooting star
QCOM +0.35 – white candle did not confirm potential hanging man
GOOG -2.52 – potential shooting star
BIDU +3.22 – large white candle did not confirm inside day

NDX 100 stocks stronger than the NDX include: HOLX, BIDU, BBBY, NIHD, KLAC, MXIM, NVDA, ROST, ESRX, CTXS, GRMN, RYAAY, LLTC, AKAM and AMAT.

Stocks weaker than the NDX: WYNN, FWLT, JOYG, SRCL, MICC, JBHT, FLIR, EXPD, DELL, SBUX, LOGI, VRSN, CHRW, ADSK and WCRX.

Stocks to Watch on Friday
Holding Above 30 DMA
HLF, PCLN, RVBD, AGU, MCD, POT, FFIV, LVS, NFLX, VMW, CMG, CRM, TSL, FCX, SINA, SPG, VOD, AIV, BUCY, CAM, DE, DHR, DOW, PCP, SWK, UNP, UPS, URE, WLT, WMT, A, GMCR, HAS, IPI, JEC, LXK, CAT, ICE, FLS, GS, MHS, ATW, STI, ACN, ATI, AMX, GES, PNC, RMBS, ZION, NDAQ, UAUA, USD, VECO, MA, NETL, ESI, GME, HSY, WFMI, CHL, FDX, NTRI, AMD, TIE, TLT, V
Moving Above 30 DMA = 0


Moving Below 30 DMA = 9
AKS, ATI, BA, BAC, CLF, DLR, GR, GS, WHR
Staying Below 30 DMA
BYI, DECK, HANS, NYX, TBT, PNC, X, NTES, UCO, USO, FAZ, CSTR, SNDK, CRUS, CREE, SWN, UNG, SKX

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

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