COMPQ and RUT Move Higher, SPX, INDU Form Hammers as Breadth Turns Positive...

The SPX formed a hammer-like doji, down -1.30 at 1,306.10 on Thursday.  This was the third day of a bull flag pullback with buyers stepping in just above the 78% Fibonacci support level from the January 28 low.

SPX hammer-like doji, bull flag

INDU black hammer, bull flag

COMPQ hammer, bullish harami, bull flag

RUT bullish harami, bull flag

Breadth strengthened on Thursday and turned positive as advancers led decliners 1.14 to 1 on the NYSE and 1.50 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      1,593             1,601

Decliners        1,396             1,063

Index              Chg.    Close    Direction      Confirmation

VIX                  -0.84      21.32     Down            No – SPX

SOX               +7.63    451.90     Up                 Yes – COMPQ

Leading stocks > +2% on Thursday included RVBD, AMD, NTES, UAL, LDK, VECO, TSL, SWKS, JNPR, ESI, CIEN, IPI, HSY, JDSU, SOHU, SINA, DECK, SKX, CRUS, CSTR, NVDA, SWK, VMW, ATI, GMCR

Losing stocks < -2.0% included SLW, UCO, SLB, VLO, STI, HANS

CRM +11.00, +8.19% rose in after hours trading following a positive reaction following Q4 EPS.

The COMPQ and RUT rose while the INDU and SPX pulled back, momentum, sectors and breadth all improved. AAPL, AMZN, BIDU, NFLX and PCLN moved higher and GOOG closed lower.

PCLN +36.35, +8.53% rose in after hours trading, after reporting Q4 EPS that beat estimates Wednesday after the close.

Positives – COMPQ, RUT, VIX, AAPL, AMZN, BIDU, NFLX, PCLN, Euro, breadth and sectors strengthened

Negatives – SPX, INDU, TNX

Interest rates closed lower on Thursday and bond ETF TLT was up 58 cents.  The Euro rose 50 pips to 1.3797 at 5 pm ET.

Flag Bounce – PCLN, NTES, RVBD, OPEN, LDK, SWKS, JNPR, GLW, SOHU, ICE, IL

Setups

Bull Flag – CRM, NDAQ, AKS, VLO, CLF, JDSU, NYX, ATI, URE, DISH, TSL, DLR, HANS, HUM, CAM,  SLB, TIE, MA, SPG, STI, NETL, CAT, ATW, SWK, XL, NFLX, CIEN, SMH, AAPL, AMZN, BIDU, LULU, CMG, ARMH, NIHD, CRUS, GMCR, SWK, FFIV, RVBD

Breakout – SLW, CHK, HLF, VRTX

Positives – COMPQ, RUT, VIX, AAPL, AMZN, BIDU, NFLX, PCLN, Euro, breadth and sectors strengthened

Negatives – SPX, INDU, TNX

Interest rates closed higher on Thursday and bond ETF TLT was up 58 cents.  The Euro rose 50 pips to 1.3797 at 5 pm ET.

Four of nine sectors rose on Thursday with Consumer Discretionary XLY +0.60% and Industrials XLI +0.58% leading all sectors

SPX

Resistance: 1,311, 1,321, 1,330, 1,338

Support: 1,300, 1,281

The short term 3 day trend is down.
The six-month trend is up.
The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

AAPL +0.26 – hammer, day five in bull flag

AMZN +1.07 – bullish harami at 61.8 Fibonacci retracement

NFLX +3.98 – bullish harami, day seven in bull flag

QCOM +0.79 – bullish harami, day three in bull flag

GOOG -2.50 – hammer in pull back

BIDU +2.91 – bullish harami at earnings gap support day eight in bull flag

NDX 100 stocks stronger than the NDX include PCLN, NIHD, CTRP, FFIV, DLTR, MU, BIDU, NVDA, ALTR, ADSK, BRCM, LRCX, GILD, NFLX and SNDK.

Stocks weaker than the NDX include SHLD, MYL, YHOO, VOD, SPLS, EXPD, MAT, TEVA, VRTX, WYNN, AKAM, BBBY, WCRX, INTU and GOOG.

Stocks to Watch on Friday
Holding Above 30 DMA
NDAQ, VLO, CLF, JDSU, CRUS, GLW, NYX, ATI, URE, DISH, TSL, DLR, HUM, LDK, NTES, CAM,  SLB, TIE, MA, SPG, NETL, CAT, SOHU, ATW, SWK, ICE, JNPR, AMD, DHR, V, ARUN, CIEN, CMG, HSY, DECK, GMCR, GES, RVBD, SLW, AKS, ESI, CSTR, HLF, TLT

Moving Above 30 DMA = 6

ATI, FAZ, MOS, SMH, SWKS, VECO

Moving Below 30 DMA = 2

HANS, STI

Staying Below 30 DMA

ACN, DOW, FAS, GS, HAS, IPI, POT, TIF, A, AGU, BA, BAC, CRM, DE, FDX, FWLT, JEC, LVS, LXK, MHS, NVDA, PCP, PNC, SINA, SNDK, TBT, UAL, UNP, X, CF, PCX, SINA, SKX, WLT, ZION, VMW, MCP, SWN, AIV, UCO, UNG, WHR, F, LCC, CHL, FCX, CREE, GME

Intermediate Term Market Trend: Up
Short Term Market Trend: Down