SPX Rallies from Chart Signals Price Target...

Inside Japan

We just spoke with our daughter-in-law in Japan and things are starting to get back to normal in Chiba, just east of Tokyo.  Food, gas and water are now available, although the gas lines are still long.  They did have another fairly strong earthquake in Chiba, but it did not do any major damage.

Since reaching the support break price targets, buying pressure has taken control of the market driving all the broad indexes higher on Thursday.  The SPX closed up +16.84 at 1,273.72. 

SPX bullish harami, +1.34%

INDU bullish harami, +1.39%

COMPQ large black candle, +0.73%

RUT black candle, inside day, +0.46%

Breadth was marginally stronger on Thursday as advancers led decliners 2.75 to 1 on the NYSE and 1.55 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      2,216             1,582

Decliners           805              1,015

Index              Chg.    Close    Direction      Confirmation

VIX                  -3.03      26.37     Down            Yes – SPX

SOX               +5.53    417.97     Up                 Yes – COMPQ

Leading stocks > +2% on Thursday included UCO, FWLT, CLF, UNG, LDK, SLB, CSTR, WLT, FCX, FAS, ATW, CAM, VECO, DE, CAT, UNP, WDC, AMD, SNDK, SWN, BAC, CF 

Losing stocks < -2.0% included GES, JDSU, SINA, SOHU, FAZ, SWKS, UAL, MHS, JNPR, CMG, RVBD

Positives – SPX, VIX, INDU, COMPQ, NDX, RUT, SOX, TNX, sector strength, AAPL, GOOG, bonds weaker, breadth strengthened, Euro

Negatives – RUT relatively weaker, AMZN

Interest rates TNX rose on Thursday and bond ETF TLT fell 72 cents.  The Euro rose 123 pips to 1.4020 at 5 pm.  Falling interest rates create a resistance for financial stocks and the SPX.

All nine sectors moved higher on Thursday with Energy XLE +3.05% and Materials XLB +1.78% the strongest sectors.

Movers and Setups

Bounce – WDC, CAM ATW, ICE, SBUX, FCX, TSL, LDK, POT, MOS, MON, DE, SWK, SLW, HAS, A, BIIB, WYNN, CERN, CTXS, ADP, VRTX, DTV, GILD, QGEN

Bull Flag Price Pattern – IL, GMCR, RVBD, HLF, SINA, DLR, GRMN, PCLN

Breakout – NFLX, TLT, FAZ

Reversal Move Up – FWLT, CLF, LDK, SLB, FCX. CAT, UNP, CF, AKS, CMG, IPI, CMG, SWKS, CIEN, FSLR

SPX

Resistance: 1,271, 1,281, 1,300

Support: 1,256, 1,241

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 +4.63 – bullish harami, -9.8% correction from Mar 7

AMZN -3.73 – large black candle, -16.0% correction from Feb 14

NFLX +0.06 – black spinning top, -23.6% correction from Feb 14

QCOM +1.82 – black spinning top, -16.2% correction from Mar 1

GOOG +4.26 – bullish harami, -12.6% correction from Feb 18

BIDU +1.08 – black spinning top in trading range

NDX 100 stocks stronger than the NDX include AKAM, QCOM, VOD, STX,JOYG, CMCSA, NIHD, AMAT, ERTS, SNDK, FLIR, CA, NVDA, ESRX and KLAC.

Stocks weaker than the NDX include FFIV, AMZN, SHLD, ILMN, FLEX, GRMN, PCLN, DELL, ADBE, XLNX, FSLR, DLTR, WCRX, YHOO and CSCO.

Stocks to Watch on Friday

Holding Above 30 DMA
HUM, IL, ARUN, GMCR, HLF, HAS, SINA, TLT, FAZ, SWN, TSL

Moving Above 30 DMA = 7

ATW, CAM, CAT, CSTR, UNG, VECO, WDC

Moving Below 30 DMA = 3

CMG, DLR, NYX

Staying Below 30 DMA

A, DHR, NTES, RVBD, SLW, SWK, VLO, ESI, JNPR, SOHU, UCO, BAC, ICE, TIF, URE, MCP, AMD, CHL, DECK, DOW, NDAQ, UNP, V, CLF, FAS, GLW, JDSU, NETL, PCX, TBT, ACN, AGU, CRUS, SWKS, WLT, CIEN, DE, GES, IPI, MHS, MOS, POT, SLB, SMH, ATI, CF, AKS, CRM, LDK, SNDK, STI, FWLT, GS, JEC, LVS, NVDA, UAL, X, ZION, VMW, F, FCX

3 ½ Week Term Market Trend: Down
Short Term Market Trend: Down