INDU New High Close...SPX Just Short of New High...

The SPX formed a potential hanging man closing up +3.17 at 1,307.10 just a half point low of a new high close.  Thursday’s price closed above Tuesday’s S1.  

SPX potential hanging man did not confirm potential bearish harami

INDU potential hanging man, new high close

COMPQ potential hanging man, did not confirm potential shooting star

RUT potential hanging man, did not confirm potential shooting star

Breadth weakened on Thursday as advancers led decliners 1.18 to 1 on the NYSE and 1.003 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      1,621             1,321

Decliners        1,363              1,317

Index              Chg.    Close    Direction      Confirmation

VIX                 -0.61       16.69    Down             Yes – SPX

SOX               -0.25     453.66    Down             No – COMPQ

Leading stocks > +2% on Thursday included GMCR, NETL, SLW, CRUS, CMG, DECK, HSY, HUM, SKX, UAL, CSTR, HAS, SWKS, MA, WHR, STI, F, GES  

Losing stocks < -2.0% included PCX, WLT, SOHU, MCP, LDK

Positives – VIX, TNX, SPX stays above S1, INDU new high close, breadth strengthened, sector strength

Negatives – SOX, Euro weakness

Interest rates rose on Thursday and bond ETF TLT closed near unchanged down 75 cents.  The Euro moved down 175 pips to 1.3633 at 5 pm ET. 

All nine sectors moved higher on Thursday with Consumer Discretionary XLY +1.17% and Consumer Staples XLP +0.52% leading all sectors. 

Earnings – continue to watch earnings releases this next week

Breakouts and Setups – SWKS, X, RIMM, JNPR, SINA, ADSK, ALTR, BMC, COST, CSCO, CTSH, DTV, EBAY, FAST, FFIV, KLAC, NWSA, PAYX, PCLN, ROST, SHLD, VOD, VRSN, AKS

Charts to Watch

A breakout, a breakout setup and two C Patterns…

(click image to enlarge)

SPX

Resistance: 1,300, 1,311, 1,321

Support: 1,281, 1,271, 1,256

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 -0.88 – dragonfly doji, barely confirms bearish harami at resistance

AMZN +0.18 – spinning top inside day

NFLX +0.23 – white spinning top above gap support

QCOM +0.99 – white candle above gap support

GOOG -1.85 – spinning top at 30 DMA

BIDU +0.48 – potential hanging man did NOT confirm shooting star above gap support

NDX 100 stocks stronger than the NDX include SHLD, NWSA, ROST, COST, FFIV, MAT, RIMM, FAST, QGEN, QCOM, MYL, ORLY and CSCO.

Stocks weaker than the NDX: CELG, NVDA, GILD, NIHD, CTSH, TEVA and CERN.

Stocks to Watch on Friday
Holding Above 30 DMA
SINA, NDAQ, SMH, NVDA, FWLT, PCX, CLF, CRUS, HOLX, DE, FAS, GLW, JEC,  ACN, NYX, ATI, URE, DISH, BA, POT, SWN, TSL, DLR, HANS, HUM, LDK, NTES, CAM,  SLB, TIE, MA, SPG, ESI, STI, CAT, DOW, MOS, NETL, SOHU, SWKS, ATW, SWK, TBT, AIV, AKS, ICE, JNPR, PCP, X, AGU, AMD, BAC, CF, DHR, IPI, LVS, LXK, PNC, SKX, V, ZION, ARUN, CMG, HSY, MCP

Moving Above 30 DMA = 4

DECK, GMCR, SLW, UAL

Moving Below 30 DMA = 1

WLT

Staying Below 30 DMA
A, UNP, UCO, UNG, SKX, WHR, F, FDX, MHS, SNDK, VECO, TLT, CHL, CRM, RVBD, VMW, FCX, GS, HLF, CREE, GME, GES, HAS, CSTR, MCD, FAZ

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