Thursday, December 16, 2010

SPX Reverse One Day Pullback...Makes New High Close...

On Thursday the SPX closed at 1,242.87, a new high close, up +7.64 or +0.62%.  The SPX closed above the low of the high day on Dec 13, reversing the Yellow Alert turns red signal.  The SPX is in a 5 day neutral range, so stay prepared for a potential roll over move to the downside.
(click image to enlarge)

Breadth strengthened on Thursday as advancers led decliners 2.09 to 1 on the NYSE and 2.19 to 1 on the NASDAQ…

Exchange       NYSE          NASDAQ
Advancers      2,058              1,826
Decliners           983                831
(click image to enlarge)
Index Direction     Confirmation
VIX       Down          Yes – SPX
SOX     Up                Yes – COMPQ

Leading stocks on Thursday included LVS, AKS, NDAQ, CMG, ATI, RVBD, A, FFIV, CRUS, WHR, X, INFA, CAKE, NTRI, VMW, GES, UAL, FDX, DHR, BAC, CF, NFLX, AKAM, WLT, SWN, GR, DOW, LXK, CLF, CRM, F, BYI, HAS, ACN, SNDK, AGU, JEC, DECK, UNP, DE, POT, USD, HSY, ZION, PCP, GME, TLT, CAM, DOLR, SLB, IPI

Losing stocks included V, MA, VECO, UNG, NTES, TBT, SOHU, SINA, UCO, CREE, HLF, SWK, SPG, LDK, STI, ATW, MHS, GS, ICE, GMCR, TSL, MCD

SPX new high close
INDU new high close
COMPQ forms rising three methods-like candle pattern
RUT forms rising three methods candle pattern

All four broad indexes and the TRAN and SOX moved higher and closed above November’s old resistance now new support.

Interest rates moved slightly lower on Thursday and bonds rose.  The Euro rose along with the SPX. 

The SOX rose +0.66%, closing at 408.71 on Thursday.  The SOX is still a leading group at this time and is forming a bull flag pattern.  The VIX closed down -0.55 at 17.39.

All nine sectors moved higher on Thursday with Industrials XLI +1.10% and Materials XLB +0.94% leading all sectors.

Moves on Thursday
Continuation – CAT, NUE, WHR, X, TBT, CAN, WFMI
Resistance Breakout – STLD, HSY, GR, WYNN, IPI, NTRI
Bull Flag Bounce – A, DOW, AKS, DHR, HAS, NDAQ
MACD Divergence Bounce
Bear Flag Break – GOOG
Break of Support – BIDU, UNG

Setup Charts to Watch
Bull Flag Setups – RVBD, WLT, ATW, CREE, FFIV, SINA, BYI, VMW, SNDK, NETL, GME, USD, UNP, CAKE, AMD, CRUS, XLF, FAS, WFC, BAC, GS, STI, PNC, NYX, ZION, C, AGU, AKAM, ATI, CF, CLF, CSTR, DE, F, FCX, FLS, JEC, RMBS, SLB, SWK
Horizontal Breakout – GES
MACD Divergence – LDK, TSL, JASO, LVS
Bear Flag Setups – NFLX, LXK, CMG
Horizontal Support Breakout – SKX

This week is triple witching expiration.  Recent quarterly expiration cycles have exhibited a tendency for the SPX to rise on Monday and/or Tuesday.  The SPX did follow through continuation move up on Monday morning but sold off going into the close.

Continue to trade with the trend of the chart you are trading.

SPX
Resistance: 1,241, 1,256
Support: 1,220, 1,209, 1,200

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.

Enter bearish trades on a break of short term support or a bounce down from the 30 DMA.

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 +0.89doji at resistance
AMZN +2.47white candle confirms inverted hammer at support
NFLX +3.15morning star pattern
QCOM +0.56white candle close above resistance
GOOG +1.41hammer after three day pull back
BIDU -1.89large black candle

NDX 100 stocks stronger than the NDX include WYNN, INFY, FLIR, INTU, ADBE, FFIV, BIIB, ISRG, ROST, DLTR, MYL, SBUX, HOLX, CTXS and PDCO.

Stocks weaker than the NDX: CTRP, BIDU, ILMN, SRCL, MICC, QGEN, ORCL, JOYG, MRVL, GENZ, DTV, SHLD and DISH.

Stocks to Watch on Friday
Holding Above 30 DMA

SINA, CAKE, CAM, UNP, WLT, ATW, SLB, NDAQ, USD, DECK, GR, RVBD, WFMI, BYI, MHS, NETL, FFIV, CAT, X, CREE, GES, HAS, CLF, CRM, INFA, VMW, SNDK, CRUS, FCX, FDX, AKS, A, AMD, DHR, DOW, FLS, GME, ICE, PNC, TBT, UCO, DE, FAS, JEC, STI, SWK, WHR, ZION, ACN, BAC, GS, NYX, ESI, IPI, HSY, NTRI
Moving Above 30 DMA = 3
ATI, CF, PCP
Moving Below 30 DMA = 2
HLF, MA
Staying Below 30 DMA
AIV, NTRI, SKX, V, CSTR, NFLX, PCLN, UNG, VECO, ARUN, CMG, RMBS, SOHU, AKAM, GMCR, MCD, SPG, HANS, SWN, URE, AGU, AMX, LVS, POT, TIE, UAL, FAZ, TLT, MOS, NTES, LDK, CHL, TSL, BA, LXK, DLR

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

1 comment:

Judy said...

Good evening Dave! I was just going over your bull flags list again from Wednesday night's post. Many of those look like good candidates. Not sure what to expect tomorrow, other than, trend continuation. Your comment about the market rolling over is interesting. I appreciate and look forward to your postings everyday! Looking forward to the WSWU tomorrow night. Cheers! Judy