Bull Flag Still Forming as SPX Pulls back...

Dave will be in the AT Trading Room at 5 pm MDT...See you there...

The SPX closed -12.22 at 1,335.10.  PCLN gapped up over $10 after releasing earnings after the close.  April unemployment will be released Friday before the open.  Oil prices reportedly fell on Thursday over concerns of weaker U.S. demand.

SPX black candle -0.91%

INDU black candle -1.10%

COMPQ inverted hammer -0.48%

RUT inverted hammer -0.44%

Breadth strengthened slightly on Thursday as decliners led advancers 1.34 to 1 on the NYSE and 1.57 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      1,136              1,005

Decliners        1,874              1,586

Index              Chg.    Close   Direction    Confirmation

VIX                 +1.12     18.20     Up                Yes – SPX

SOX               +0.65   440.35     Up                No – COMPQ

Leading stocks > +2% on Thursday included JDSU, UAL, ANF, DECK, HLF, FAZ, SINA, ESI, RVBD, SWK, CMG

Losing stocks < -2.0% included UCO, UNG, SLW, IPI, MCP, CDE, IAG, FAS, GMCR, PCX, FCX, AKS, LDK, SLB, POT

We are still on the sideline looking for the SPY entry and the bull flag pattern continues continuing its pull back on Thursday.

Positives – BIDU, NFLX,

Negatives – SPX, RUT, COMPQ, NDX, VIX, TNX, AAPL, AMZN,  PCLN, Breadth and sectors remained weak

Interest rates TNX -0.55 moved down and bond ETF TLT moved up 90 cents.  Financial stocks XLF fell 21 cents. The Euro collapsed -276 pips to 1.4538 at 5 pm on Thursday.

All nine sectors moved lower on Thursday.  Energy XLE -2.08% and Financials XLF -1.29% were the weakest sectors.

In addition to the SPY, DIA, QQQ and IWM, these stocks are also forming bull flag patterns...

Bull Flag Setups – A, ACN, AMD, ARUN, ATI, CAT, CIEN, CROX, CSTR, CHR, DLR, DOW, F, GES, GLW, GMCR, HUM, MCP, NVDA, NYX, SINA, SMH, SNDK, SWKS, SWN, TIF, UNG, UNP, URE, V, VECO, VMW, WDC, ISRG, WYNN, BIDU, CTRP, EXPD, CTXS, ALTR, FFIV, XRAY, BBBY, EXPE, LLTC, SNDK, ILMN, AMZN, QCOM, PCLN, NVDA, ESRX, DTV, MICC, CELG, CHKP

SPX

Resistance: 1,344, 1,352, 1,367
Support: 1,330, 1321

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 -2.82 – spinning top

AMZN -2.88 – inside day spinning top

BIDU +1.18 – bullish engulfing

GOOG -1.52 – spinning top

NFLX +1.12 – white candle

PCLN -3.59 – inverted hammer

QCOM +0.05 – black candle

NDX 100 stocks stronger than the NDX include ERTS, ROST, BMC, AKAM, NIHD, MXIM, CTRP, MU, KLAC, FLEX, ALTR, XLNX, FSLR, YHOO and SHLD.

Stocks weaker than the NDX include JOYG, VRSN, VRTX, CELG, BRCM, MRVL, QGEN, WCRX, URBN, PAYX, GILD, ORCL, CMCSA, ILMN and SYMC.

Stocks to Watch on Friday

Holding Above 30 DMA

HUM, HLF, UCO, CSTR, WDC, DHR, MCP, A, SOHU, ANF, DLR, CRM, LVS, TIF, V, NYX, SNDK, CIEN, IL, VMW, URE, ATI, TLT, DOW, MHS, ZION, AMD, F, GES, NVDA, SMH, ESI, JDSU, UNP, FAS, GLW, SWN, VECO, HAS, SWKS, UAL

Moving Above 30 DMA = 2

FAZ, SINA

Moving Below 30 DMA = 3

ACN, CAT, UNG

Staying Below 30 DMA

ARUN, CF, DE, GMCR, NDAQ, NETL, PCX, WLT, AGU, AKS, ATW, FCX, IPI, LDK, RVBD, SLB, TSL, CLF, DECK, CHL, NTES, POT, SWK, CMG, FWLT, JEC, VLO, JNPR, SLW, IAG, GS, CDE, STI, TBT, HAS, MOS, X, ICE, CAM, BAC, CRUS

Intermediate Term Market Trend: Up

Short Term Market Trend: Down