SPX Highest Close in Over Two Years...

The SPX closed up +23.10 or +1.93% on Thursday its highest close, 1,221 since September 19, 2008. Volume was heavy as the SPX had its largest weekly trading range since the first week of September. The COMPQ also made a new high close…

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WFMI and QCOM had large moves after strong earnings…BHP gapped up after Canada blocked its $39 billion buyout of POT which fell following the news…Breadth strengthened significantly from Wednesday as advancers led decliners by 5.2 to 1 on the NYSE and 3 to 1 on the NASDAQ…

Exchange     NYSE    NASDAQ
Advancers    2,537       2,026
Decliners        487          674

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Index     Direction      Confirmation

VIX          Down            Yes – SPX

SOX         Up                Yes – COMPQ

Leading stocks on Thursday included WFMI, FAS, BUCY, FCX, SKX, SNDK, WLT, USD, CREE, ATI, BAC, STI, SLB, URE, AMD, CLF, CAM, AIV, LVS, CAT, UCO, JEC, ATW, VECO, DOW, X, TIE, GR, MHS, PNC, CHL, HLF, WHR, ZION, SPG, NETL, BA, TSL, SWN, DECK, SINA, A, GS, PCP, AKS, DE, DHR, GEM, GES, BYI

Losing stocks included FAZ, DLR, UAL, ESI, POT, NFLX, CRM, VMW, FFIV, IPI, TBT, GMCR, NTES, HSY, SOHU, HANS, CSTR, NTRI

Interest rates fell, bonds rose, the Euro rose and the SOX was up +11.94%.  The VIX fell -1.04 to close at 18.52, its lowest close since April 29.

All nine sectors moved higher on Thursday with Financial XLF +3.33% and Materials XLB +3.28% leading all sectors.

AKAM, GS, ILMN and URE each had a support bounce entry signal on Thursday.

Charts to Watch – Flag Setups NFLX, STX

STLD, X and F moved higher while FFIV stayed above its breakout level.

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Breakouts – BUCY, DE, VECO, MAR, INFY, ISRG, LZ

Potential Breakout Setups – SOHU, SINA, CRM, VMW

Continue to trade with the trend and simultaneously be prepared for any break of support.

SPX
Resistance: 1,220, 1,234, 1,250
Support: 1,209, 1,200, 1,190 1,182, 1,170

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.

Wait to enter a bearish signal for a close below of the low of the high day.

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

AAPL +5.47 – white candle at resistance
QCOM +2.65 – black candle gap up after earnings
GOOG +4.09 – doji
BIDU -0.59 – black spinning top, test of support

NDX 100 stocks stronger than the NDX include QCOM, FWLT, MXIM, ROST, LBTYA, JOYG, KLAC, PCAR, MRVL, SHLD, COST, ALTR, MCHP, STLD and LRCX.

Stocks weaker than the NDX: APOL, EXPE, VRTX, DTV, AMGN, TEVA, FSLR, BIIB, NWSA, BIDU, GILD, GENZ, HANS, CERN and CELG.

Stocks to Watch on Friday
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, ICE, ATW, SLB, ACN, AMX, NDAQ, UAL, USD, MA, AMD, V, ATI, BA, DECK, GR, UCO, CF, GS, SPG, HANS, MOS, VECO, CSTR, RVBD, TBT, WFMI, NYX, NFLX, NTES, PCP, PNC, BYI, INFA, MHS, NETL, CRM, FFIV, GMCR, ARUN, SWN, CAT, CLF, POT, JEC, FAS, GME, NTRI, SWK, X, FDX, SNDK
Moving Above 30 DMA = 7
BUCY, CHL, CREE, RMBS, STI, TSL, ZION
Moving Below 30 DMA = 2
HSY, POT
Staying Below 30 DMA
ESI, FLS, GES, SKX, WHR, LXK, AKS, TIE, FAZ, BAC, CRUS, TLT, DLR, VMW, UNG

Intermediate Term Market Trend: Up – 2 months
Short Term Market Trend: Up