SPX New High Close as XLU and XLF Lead Sectors...

The SPX formed a hanging man and closed +4.82 at 1,360.48.  Financials XLF +0.80% moved higher giving support to the SPX move on Thursday.  Both the Dow Industrials and the Transportations made a new high close today, confirming the current up trend bull market according to Dow Theory.

Railroad stocks KSU, CSX and UNP rose after NSC +7.98% gapped up following earnings.

SPX white candle +0.36%

INDU white candle +0.57%

COMPQ white spinning top, just above horizontal resistance, +0.09%

RUT white candle, horizontal breakout +0.38%

Breadth weakened slightly on Thursday as advancers led decliners 1.60 to 1 on the NYSE and 1.28 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      1,851             1,466

Decliners        1,155              1,145

Index              Chg.    Close    Direction      Confirmation

VIX                 -0.73       14.62     Down            Yes – SPX

SOX               -3.10     447.54     Down            No – COMPQ

Leading stocks > +2% on Thursday included IL, TSL, UNG, DLR, URE, CSTR, GMCR, MCP, GES, MHS, HUM

Losing stocks < -2.0% included CAM, MOS, ESI, POT, UAL, DECK, SNDK, SLW, FCX, FAZ

As I stated last week if the SPY broke through horizontal resistance, I would place a new real time virtual trade.  Conditional order entered to buy 50 May 135 calls at or above 134.25.  Order filled Tuesday at 7:53:51 at 1.30 per contract.  Call closed today at 2.17 for a gain of 87 cents or +66.9% in three days.

Positives – SPX, INDU, TRAN, RUT, XLF, SOX, TLT, breadth and sectors positive, Euro

Negatives –TNX, NDX, SOX

Interest rates TNX -0.56 moved down and bond ETF TLT moved up 71 cents.  Financial stocks XLF moved up 13 cents. The Euro moved up 37 pips to 1.4823 at 5 pm on Monday.

All nine sectors moved higher on Thursday.  Utilities XLI +0.88% and Financials XLF +0.80% were the strongest sectors. 

SPX

Resistance: 1,367, 1,384

Support: 1,352, 1,344, 1,330

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 -3.40 – inverted hammer

AMZN -1.56 – potential hanging man above S1

BIDU -2.86 – spinning top

GOOG +0.21 – doji

NFLX -1.59 – inverted hammer, bullish harami

PCLN +10.58 – large white candle, pennant breakout

QCOM -0.60 – potential hanging man, inside day

NDX 100 stocks stronger than the NDX include VRTX, SIAL, RIMM, SHLD, SPLS, KLAC, AMGN, PCAR, NVDA, MU, CSCO, INTC, JOYG, DELL and CELG.

Stocks weaker than the NDX include CTXS, XLNX, ESRX, XRAY, QGEN, LIFE, PCLN, RIMM, ALTR, EXPE, NIHD, NWSA, YHOO, ROST and CHKP.

Stocks to Watch on Friday

Holding Above 30 DMA
HUM, HLF, SINA, UCO, CSTR, WDC, DHR, MCP, A, WLT, ACN, SOHU, ANF, DECK, DLR, CRM, LVS, TIF, V, NDAQ, NYX, SNDK, CIEN, IL, VMW, URE, ATI, TLT, CF, AKS, ARUN, CLF, DOW, MHS, UNG, ZION, AMD, CAT, DE, F, FCX, GES, NETL, NVDA, SMH, ESI, JDSU, UNP, FAS, GLW, SWN, VECO, HAS

Moving Above 30 DMA = 1

GMCR

Moving Below 30 DMA = 4

AGU, IPI, SLB, UAL

Staying Below 30 DMA

ATW, CHL, NTES, PCX, POT, SWK, CMG, FAZ, FWLT, JEC, VLO, JNPR, SLW, TSL, IAG, GS, CDE, STI, TBT, HAS, MOS, X, ICE, CAM, RVBD, BAC, CRUS, SWKS, LDK

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