Thursday, May 26, 2011

RUT Leads the Way as SPX Bounces...


The SPX formed a white candle and closed +5.22 at 1,325.69 continuing the support bounce that began on Wednesday.  The SPX continues in a three week consolidation downward sloping price channel which indicates a support bounce price target of 1,334 the channel resistance line. 

The SPY price channel support also held as SPY moved above the high of Monday’s entry price above 132.46 closing at 133.00.  The potential price target is133.75.   The VIX closed lower confirming Thursday’s bounce.
(click image to enlarge)

SPX white candle, below 30 DMA +0.40%
INDU spinning top, below 30 DMA +0.07%
COMPQ large white candle confirms piercing line, below 30 DMA +0.78%
RUT large white candle, below 30 DMA +1.22%

Breadth strengthened as advancers led decliners 2.52 to 1 on the NYSE and 2.56 to 1 on the NASDAQ

Exchange       NYSE        NASDAQ
Advancers      2,167            1,848
Decliners           857               720

Index              Chg.    Close    Direction    Confirmation
VIX                 -0.98     16.09      Down           Yes – SPX
SOX              +4.03   428.24      Up              Yes – COMPQ

Leading stocks > +2% on Thursday included GES, TIF, LDK, TSL, NETL, ARUN, WLT, ESI, SWK, URE, MCP, NVDA, LVS, CMG, HUM, AKS, GMCR

Losing stocks < -2.0% included

Positives – RUT, COMPQ, SPX, VIX, breadth and sectors strengthened, AMZN, NFLX, PCLN, TLT, XLF

Negatives – TNX, AAPL

Interest rates TNX -0.68 fell.  Bond ETF TLT moved up 82 cents.  The Euro moved up 60 pips to 1.4144 at 5 pm on Thursday.

Eight of nine sectors moved higher on Thursday.  Consumer Discretionary XLY +0.91% and Technology XLK +0.66% were the strongest sectors.

SPX
Resistance: 1,330, 1,344, 1,352
Support: 1,321, 1,310, 1,300

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 -1.78 – spinning top, below 30DMA
AMZN +2.74 – bullish engulfing, close above 30 DMA
BIDU +0.41 – hammer confirms inverted hammer, below 30 DMA
GOOG -1.54 – bullish harami, below 30 DMA
NFLX +4.28 – white candle, above 30 DMA
PCLN +6.30 – white candle confirms piercing line, below 30 DMA
QCOM +0.18 – spinning top at diagonal resistance, above 30 DMA

(click image to enlarge)

NDX 100 stocks stronger than the NDX include NTAP, CTXS, BRCM, FFIV, NWSA, MRVL, NVDA, CTSH, SYMC, DLTR, CMCSA, MSFT, LINTA, DELL and MU.

Stocks weaker than the NDX include VRTX, FSLR, AMAT, YHOO, SPLS, ESRX, INTC, ERTS, BBBY, MAT, PCAR, AAPL, STX, BIIB and GOOG.

Stocks to Watch on Friday
Holding Above 30 DMA
HUM, HLF, CSTR, ANF, DLR, TIF, TLT, MHS, UNP, VECO, UAL, GMCR, KKD, RVBD, FAZ, ACN, ICE, CMG, SWN, VMW, CF, CREE, CRM, IAG, ATW, NGLS, V
Moving Above 30 DMA = 6
DECK, ESI, GES, NVDA, POT, URE
Moving Below 30 DMA = 2
HAS, UNG
Staying Below 30 DMA
A, DHR, JDSU, JNPR, SMH, SWK, ARUN, STI, AMD, GLW, SNDK, ATI, CIEN, NYX, CHL, DOW, F, FWLT, ZION, CAT, IL, NDAQ, SWKS, VLO, WDC, MCP, SINA, WLT, FAS, LVS, SOHU, UCO, ANR, DE, NETL, PCX, AGU, AKS, FCX, IPI, LDK, SLB, TSL, CLF, NTES, JEC, SLW, GS, CDE, TBT, MOS, X, CAM, BAC, CRUS

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

No comments: