SPX Opens Lower and Closes Slightly Higher...

The SPX formed a potential hanging man that did not confirm Wednesday’s potential hanging man. After lower open and an early selloff, the SPX rallied and closed up +0.99 at 1,321.87 on Thursday.

SPX potential hanging man
INDU potential hanging man
COMPQ large white candle
RUT large white engulfing candle

Breadth strengthened on Thursday as advancers led decliners 1.12 to 1 on the NYSE and 1.07 to 1 on the NASDAQ …

Exchange     NYSE     NASDAQ
Advancers    1,579         1,360
Decliners      1,404         1,260

Index    Chg.    Close     Direction    Confirmation
VIX       +0.22     16.09        Up                No – SPX
SOX     +1.65   459.25        Up               Yes – COMPQ

Leading stocks > +2% on Thursday included NTES, JNPR, DISH, RVBD, ARUN, VECO, CREE, ICE, ESI, PCX, SOHU, GME, JDSU, CSTR, FDX, CIEN, CRM, SLB, DHR, LXK, WLT, TBT

Losing stocks < -2.0% included MCP, GLW, ZION, UNG, NVDA

Positives – rally from intra-day low on SPX, INDU, COMPQ and RUT, BIDU, PCLN, breadth strengthened, sectors strengthened, TNX rose, SOX piercing line in bull flag

Negatives – AAPL, Euro

Interest rates rose on Thursday and bond ETF TLT fell -1.03. The Euro fell 127 pips to 1.3600 at 5 pm ET.

Six of nine sectors rose on Thursday with Energy XLE +1.02% and Industrials XLI +0.54% leading all sectors.

SPX
Resistance: 1,321, 1,330
Support: 1,311, 1,300, 1,281

The short term 3 day trend is up.
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 -3.62 – potential hanging man, outside day
AMZN +0.91 – white candle
NFLX +0.91 – white spinning top
QCOM +0.79 – large white candle
GOOG -0.06 – white spinning top
BIDU +2.78 – large white candle

NDX 100 stocks stronger than the NDX include WFMI, EBAY, CTXS, RIMM, VMED, INTU, FFIV, CHKP, ILMN, EXPD, FLIR, BIDU, ROST, MICC and CELG.

Stocks weaker than the NDX: AKAM, CSCO, ATVI, NVDA, MSFT and ORLY.

Stocks to Watch on Friday
Holding Above 30 DMA
SINA, NDAQ, SMH, NVDA, FWLT,CLF, JDSU, CRUS, HOLX, DE, FAS, GLW, JEC, ACN, NYX, ATI, URE, DISH, POT, BA, TSL, DLR, HANS, HUM, LDK, NTES, CAM, SLB, TIE, MA, SPG, STI, CAT, DOW, MOS, NETL, SOHU, SWKS, ATW, SWK, TBT, ICE, JNPR, PCP, AGU, AMD, BAC, CF, DHR, IPI, LXK, PNC, SKX, V, ZION, ARUN, CIEN, CMG, HSY, MCP, DECK, GMCR, TIF, UAL, A, GES, RVBD, HAS, SLW, VECO, HLF, MCD, UNP
Moving Above 30 DMA = 7
AKS, CRM, ESI, FDX, PCX, SNDK, X
Moving Below 30 DMA = 0

Staying Below 30 DMA
GS, MHS, SWN, AIV, LVS, WLT, UCO, UNG, WHR, F, LCC, TLT, CHL, VMW, FCX, CREE, GME, CSTR, FAZ

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