SPX Inches Higher as COMPQ Leads on Strength of BIDU, PCLN and RVBD...

The SPX rose +2.82 or +0.24% on Friday forming a spinning top at horizontal resistance.  The big move was in the COMPQ which was led by moves in RVBD, FFIV, NVDA, PCLN, LRCX, BIDU, SBUX, CTXS and EBAY.  Advancers led decliners 1.5 to 1 on the NYSE…

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Exchange     NYSE    NASDAQ

Advancers    1,777       1,681

Decliners      1,177         956

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Index     Direction    Confirmation

VIX           Down          Yes – SPX

SOX         Up               Yes – COMPQ

Leading stocks on Friday included RVBD, CMG, FFIV, PCLN, NETL, ESI, WFMI, UCO, USD, GES, PCP, SINA, CREE, HANS, CRM, PNC, VECO, LVS, USO, SWK, BYI, GR, ATW, LXK, MHS, CLF, UNP, HSY, CAM, AIV, NTRI, NDAQ, SKX, RMBS, FLS, BAC, HAS, TLT, ZION, HLF, AMX, GMCR, VMW, NYX, GME,NTES, TSL

Losing stocks included BUCY, CRUS, NFLX, FCX, IPI, UNG, STI, AKS, SWN, ICE, TBT, DOW, TIE, GS, POT, MOS, CHL, CAT, CF, DHR, JEC, ATI, SNDK, FA, AGU, UAL

Interest rates rose, 10 year notes fell, the EURO rose, the SOX closed higher and the VIX closed lower -0.49 at 18.78.

Five of nine sectors moved higher on Friday with Energy XLE +0.68% and Consumer Discretionary +0.55% leading all sectors.

Two weeks ago in the Weekly Wrap I mentioned that during the upcoming earnings season that selectivity would rule while institutions bought stocks with good earnings and guidance and sell stocks with weak earnings or guidance and as a result the broad indexes would likely trade in a narrow range. That forecast is unfolding on track as institutions have paid up big for stocks starting with GOOG last week. This week buying in AMZN, NFLX, BIDU, RVBD, CTXS, LRCX, CHKP, YHOO, FLIR, CA, BIDU, EBAY, INFA and CAKE help lift the COMPQ and offset weakness from AAPL. Institutions also bought DHR, PCP and SLB while selling ISRG, MICC, INFY, APOL, CRUS and BUCY.

The net result is that the SPX closed just below Monday’s close as did the COMPQ. The RUT rallied with the COMPQ on Friday but closed several points below its closing high on Monday.

The SPX has traded in a narrow range of 25 to 35 points over the past five weeks.  Look for this same pattern of narrow range consolidation to continue next week as institutions continue to be selective and buy stocks with strong earnings and guidance and sell stocks with weak earnings and guidance.

Charts to Watch

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SPX

Resistance: 1,182, 1,190

Support: 1,170, 1,148, 1,130

Enter bullish trades with a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Enter bearish entry signals on a close below of the low of the high day or a bounce down from resistance on stocks that are closing below support.

The short term 3 day trend is neutral.

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 -2.05 –black spinning top

QCOM +0.20 – white spinning top does not confirm hammer

GOOG +4.01 –spinning top

BIDU +2.47 – white candle gap following positive earnings

NDX 100 stocks stronger than the NDX include NVDA, PCLN, LRCX, CA, BIDU, SBUX, CTXS, ISRG, EBAY, URBN, GRMN, HANS, MRVL, CHKP and AMZN.

Stocks weaker than the NDX: JOYG, FLIR, WCRX, APOL, DTV, DISH, AAPL, TEVA, ATVI, JBHT, NWSA, STX, CMCSA, STLD and MSFT.

Stocks to Watch on Monday

Holding Above 30 DMA

HLF, PCLN, AGU, MCD, LVS, CMG, FCX, SINA, VOD, AIV, CAKE, CAM, DE, DHR, DOW, UNP, URE, WLT, A, HAS, IPI, JEC, LXK, CAT, ICE, FLS, ATW, SLB, ACN, AMX, GES, NDAQ, UAL, USD, MA, HSY, CHL, FDX, NTRI, AMD, V, ATI, BA, DECK, GR, UCO, WHR, CF, GS, SPG, HANS, MOS, SWN, VECO, CSTR, RVBD, TBT, WFMI, NYX, ZION, FAS, NFLX, NTES, PCP, PNC, STI

Moving Above 30 DMA = 5

BYI, INFA, MHS, NETL, SKX

Moving Below 30 DMA = 1

BUCY

Staying Below 30 DMA

CLF, SNDK, SWK, CREE, AKS, TIE, FAZ, POT, RMBS, TSL, ESI, BAC, GME, CRUS, X, FFIV, TLT, DLR, VMW, CRM, GMCR, UNG

Intermediate Term Market Trend: Neutral

Short Term Market Trend: Neutral