GOOG Gaps and Falls, AAPL Lower as SPX Breaks High of the Low Day...

The SPX formed a white candle that broke above the low of the high day on Friday closing up +5.16 at 1,319.68.   The SPX bounced moved off its 30 DMA.

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SPX white candle bounce entry, above 30 DMA +0.39%

INDU white candle bounce entry, above 30 DMA, +0.46%

COMPQ white candle, above 30 DMA, +0.16%

RUT white candle bounce entry, above 30 DMA, +0.91%

Breadth strengthened on Friday as advancers led decliners 2.18 to 1 on the NYSE and 1.88 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      2,054             1,702

Decliners           942                 901

Index              Chg.    Close    Direction      Confirmation

VIX                 -0.95       15.32     Down            Yes – SPX

SOX              +2.82     431.23     Up                 Yes – COMPQ

The VIX made it lowest close in more than two years.

Leading stocks > +2% on Friday included ATI, JEC, TIF, ANF, DECK, SWN, URE, DOW, FWLT

Losing stocks < -2.0% included IAG, CRUS, CF, TBT, BAC, LDK, MOS

Positives – SPX, VIX, INDU, RUT, PCLN, QCOM, breadth and sectors strengthened, TLT

Negatives – GOOG, AAPL, NDX, TBT

Interest rates TNX -0.75 moved down and bond ETF TLT moved up 1.24.  Financial stocks XLF was up 1 cent. The Euro moved down 58 pips to 1.4427 at 5 pm on Friday.

Eight of nine sectors moved higher on Friday.  Utilities XLU +1.10% and Healthcare XLV +0.89% were the strongest sectors. 

GOOG reported EPS below and revenues above guidance after the close on Thursday and gapped lower and closed down -47.81 on Friday.

Key earnings in week one:

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The number of companies reporting earnings increases this coming week:

Monday – C, STLD, TXN, ZION

Tuesday – INTC, ISRG, LLTC, MICC, ST, WYNN, YHOO, CREE, CSX, GS, HOG, JNJ, JNPR, RF, STT, SYK, VMW

Wednesday – AAPL, GILD, FFIV, VMED, LRCX, QCOM, AMGN, AXP, AMR, DAL, FCX, MAR, STI, CAKE, UNP, UTX, WFC, WDC

Thursday – MXIM, SNDK, VRTX, BIIB, AMD, ALD, ALXN, COF, DD, GR, LLL, NEM, NUE, NOK, PCX, PNC, RMBS, SLB, UAL, VZ

Look for selectivity and rotation to occur with positive earnings attracting big money buying and negative earnings attracting big money selling.

GOOG is a good example of money rotating out after a disappointing report.

SPX

Resistance: 1,321, 1,330, 1,344

Support: 1,311, 1,300, 1,288

The short term 3 day trend is neutral.
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 -4.96 – large black candle

AMZN -1.81 – spinning top, bull flag

BIDU -0.20 – doji

GOOG -47.81 – gap down large black candle after earnings

NFLX -1.24 – hammer, pennant

QCOM +0.54 – white candle

NDX 100 stocks stronger than the NDX include MAT, STX, MYL, PCAR, WYNN, SIAL, NWSA, EBAY, ALTR, EXPD, NIHD, MICC, MRVL, AKAM and QGEN.

Stocks weaker than the NDX include INFY, GOOG, CTSH, FSLR, URBN, FFIV, AAPL, AMZN, RIMM, CSCO, ISRG, NFLX, VRSN and YHOO.

Stocks to Watch on Monday

Holding Above 30 DMA
HUM, GMCR, HLF, SINA, UCO, CAT, CSTR, WDC, DHR, NTES, MCP, A, DE, WLT, ACN, SOHU, TSL, CMG, ANF, DECK, DLR, CRM, LVS, TIF, V, NDAQ, NYX, SNDK, CIEN, IL, VMW, UNP, CHL, CLF, FAZ, ARUN, NVDA, SWK, UNG, URE

Moving Above 30 DMA = 6

ATI, DOW, JEC, PCX, SMH, TLT

Moving Below 30 DMA = 4

CF, F, IAG, ZION

Staying Below 30 DMA

GS, CDE, FAS, FCX, STI, TBT ESI, FWLT, HAS, NETL, SLW, AGU, AKS, POT, SLB, SWN, VECO, VLO, ATW, MOS, IPI, X, AMD, ICE, CAM, RVBD, JNPR, BAC, GLW, JDSU, CRUS, SWKS, GES, MHS, LDK, UAL

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