SPX Reverses to Upside Forming a Large White Candle...

The SPX formed a large white candle confirming Wednesday’s potential reversal inside day. The SPX 1,196, up +18.10 or +1.54%, the COMPQ closed +38.39, the INDU rose +173.35 and the RUT finished +13.07 on Thursday.

Breadth was stronger as advancers led decliners 4.36 to 1 on the NYSE and 3 to 1 on the NASDAQ.

Exchange     NYSE    NASDAQ
Advancers    2,468       2,004
Decliners         573          669

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

Leading stocks on Thursday included ARUN, CAM, CRM, LVS, FFIV, VMW, RVBD, UCO, FAS, AGW, MA, BA, VECO, POT, FCX, CF, INFA, IPI, DECK, A, MOS, USD, AGU, NDAQ, TSL, DOW, CREE, WHR, CAT, UAL, X, PCP, WLT, AKAM, SOHU, TIE, NYX, GR, AMX, CLF, MHS

Losing stocks included FAZ, F, NTES, DLR, GME, CMG, CSTR, GMCR, TBT, ESI, SKX

Interest rates inched higher, bonds moved higher, the Euro moved higher and the SOX closed higher +1.90%. The VIX fell -3.01 to close at 18.75.

All nine sectors moved higher on Thursday with Energy XLE +2.20% and Industrials XLI +2.03% leading all sectors up.

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

Charts to Watch
Bull Flag Entries on Thursday – DOW, JOYG, X, WYNN, FAS, USD, BYI, GR, IPI, UAL, UNP, SOHU, VECO, MAR, ARUN, AIV, CLF, ILMN, PCLN, SNDK, SPG, LVS, DE, AAPL, NFLX, CTXS. FCX, SLB, PNC

Flag Setups – HUM, AMD, RMBS, ZION


SPX
Resistance: 1,200, 1,209, 1,220
Support: 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. Thursday was an entry signal for many stocks.

Look for break of short term support for bearish entry signals or a bounce down from the 30 DMA

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 +7.93 – large white candle closing above support
QCOM -0.26– black candle near resistance
GOOG +13.01 – white candle close above high of low day
BIDU +1.22 – black candle bull flag bounce entry

NDX 100 stocks stronger than the NDX include NTAP, YHOO, BRCM, FWLT, VRTX, MXIM, AMZN, QGEN, NIHD, PCAR, WYNN, NVDA, ESRX, and FLEX.

Stocks weaker than the NDX: SHLD, ROST, GRMN, URBN, HOLX, DISH, COST, ISRG, BBBY, ADBE, TEVA, QCOM, APOL and INTC.

Stocks to Watch on Friday
Holding Above 30 DMA
HLF, PCLN, LVS, CMG, SINA, AIV, CAKE, CAM, DHR, UNP, WLT, A, ATW, SLB, NDAQ, USD, AMD, DECK, GR, GS, VECO, CSTR, RVBD, TBT, WFMI, NFLX, PNC, BYI, INFA, MHS, NETL, CRM, FFIV, ARUN, SWN, CAT, POT, GME, NTRI, X, CREE, BUCY, ESI, GES, HAS, JEC, MCD, UNG
Moving Above 30 DMA = 15
AIV, AMX, ARUN, CF, CLF, CRM, DE, DHR, DOW, FCX, INFA, MA, MOS, UAL, VMW
Moving Below 30 DMA = 2
FAZ, NTES
Staying Below 30 DMA
AMD, ATI, FAS, IPI, LDK, RMBS, SNDK, SPG, UCO, ZION, AKAM, GMCR, HANS, AGU, BICE, URE, V, ACN, CHL, FDX, NYX, PCP, STI, SWK, TSL, AKS, BA, HSY, POT, ESI, SKX, WHR, LXK, TIE, FAZ, CRUS, TLT, DLR

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