Stocks Rebound from Lows While Closing Lower after CSCO Lowered Guidance...

The SPX closed down -5.17 or -0.42%, the COMPQ fell -23.26, the INDU fell -73.94 and the RUT rose -3.29 on Thursday.  Stocks opened lower following CSCO lower Q2 guidance of 25 to 28 cents vs. consensus of 42 cents.  After an initial sell off at the open, stocks rebounded from their lows with leaders like FCX and BIDU closing higher for the day.  

Breadth was negative on Thursday as decliners led advancers 1.83 to 1 on the NYSE and 1.94 to 1 on the NASDAQ…

Exchange       NYSE          NASDAQ

Advancers      1,045               905

Decliners        1,913            1,759

Index Direction      Confirmation

VIX       Up                Yes – SPX

SOX     Down          Yes – COMPQ

Leading stocks on Thursday included GME, FCX, CF, HLF, WLT, MOS, FAZ ESI, CAKE, HAS, ATI, CSTR, A, LVS, UAL, AKS, GES, MHS, BUCY, DHR, FLS, PNC, SWN, TIE, FFIV, DECK, HANS, AGU, CMG, SLB, POT, DOW, X, SNDK, BYI, GS, WFMI, MCD, VMW, SOHU

Losing stocks included NETL, UNG, GMCR, CAN, PCP, BA, FAS, LXK, SINA, ARUN, INFA, WHR, TSL, NYX, UCO, SPG, URE, BAC, AMD, CHL, NTES, STI, USD, ICE, AIV, CRM, NFLX, RMBS, NDAQ, GR, NTRI, MA, FDX, DLR, IPI, RVBD, UNP

Interest rates were flat, bonds inched lower, the Euro moved lower and the SOX closed down -1.25%.  The VIX moved up +0.17 to close at 18.64.

Four of nine sectors moved higher on Thursday with Energy XLE +1.10% and Materials XLB +1.03% leading all sectors.

The SPX bounced off of last Thursday’s S1 support and rose closing at 1,213.54.  All four indexes and numerous stocks have formed bull flags and many of those bull flags formed hammer candle patterns on Thursday.

NVDA and DIS up in after hours trading after reporting earnings.

Charts to Watch

Flag Entries on Thursday – FCX, CSTR, SLB, PNC, WLT, CAKE

Flag Setups – DOW, JOYG, HUM, SINA, X, WYNN, FAS, USD, BYI, GR, IPI, PCP, UAL, UNP,  AMD, DECK, AGU, SOHU, VECO, MAR, INFY, ARUN, AIV, AKAM, CLF, ILMN, PCLN, RMBS, SNDK, SPG, URE, V,  LVS, ISRG

Breakouts and Setups – DE, VMW, ZION, AAPL, AMZN, CHKP, ORLY

Potential Bearish Setups – CREE, TIE, TLT, FSLR, APOL, EAT, NYX, LZ

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

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 closed below the low of the high day which is a potential exit signal for some bullish short term traders.

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

The short term 3 day trend is neutral.
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 -1.37 – spinning top in horizontal flag at resistance

QCOM +0.24 – white candle atg gap support

GOOG –5.69 – spinning top in bull flag

BIDU +2.41 – white candle at horizontal resistance

NDX 100 stocks stronger than the NDX include BIDU, FWLT, ORLY, STLD, VRTX, CHRW, COST, PDCO, ADSK, RIMM, EXPD, SIAL, SBUX, HOLX and ESRX.

 

Stocks weaker than the NDX: CSCO, LLTC, DELL, SYMC, XLNX, ALTR, AKAM, NTAP, BRCM, FLIR, GRMN, LRCX, AMAT, AMZN and DISH.

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, AMX, NDAQ, UAL, USD, MA, AMD, V, ATI, DECK, GR, UCO, CF, GS, SPG, MOS, VECO, CSTR, RVBD, TBT, WFMI, NFLX, NTES, PNC, BYI, INFA, MHS, NETL, CRM, FFIV, GMCR, ARUN, SWN, CAT, CLF, POT, JEC, FAS, GME, NTRI, X, SNDK, CREE, RMBS, GES, VMW, BAC, BUCY, ZION
Moving Above 30 DMA = 1

HANS
Moving Below 30 DMA = 8

ACN, CHL, FDX, NYX, PCP, STI, SWK, UNG

Staying Below 30 DMA
TSL, AKS, BA, HSY, POT, ESI, FLS, SKX, WHR, LXK, TIE, FAZ, CRUS, TLT, DLR

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