SPX Closes Lower on Weak Financials and Strong Dollar...

The SPX formed an evening star pattern and closed -10.33 at 1,333.27, creating a short exit signal for some traders and a bear flag or resistance price channel entry.  The SPX is in a three week consolidation downward sloping price channel or complex flag which indicates a potential price target around 1,310 with Friday’s bounce down from resistance.  The SPY price channel indicates a potential price target around 131.  The VIX rose to 17.43 confirming the SPX move lower.

(click image to enlarge)

SPX evening star, close below 30 DMA -0.77%

INDU bearish engulfing, close below 30 DMA -0.74%

COMPQ black candle, close below 30 DMA -0.71%

RUT evening star confirms hanging man, below 30 DMA -0.73%

(click image to enlarge)

AAPL reverses down at 30 DMA, bear flag entry on Friday

AMZN relatively strong on Friday, potential lower high above 30 DMA

BIDU in bear flag below 30 DMA, watch for potential entry signal on Monday

GOOG reverses down below 30 DMA, bear flag entry on Friday

NFLX moves higher, near short term resistance at 249, above 30 DMA

PCLN in bear flag below 30 DMA, watch for potential entry signal on Monday

QCOM moves up, at short term resistance of 57, above 30 DMA

Breadth weakened as decliners led advancers 1.92 to 1 on the NYSE and 1.59 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      1,029            1,086

Decliners        1,981            1,733

Index              Chg.    Close   Direction    Confirmation

VIX                 +1.91    17.43      Up             Yes – SPX

SOX                -1.31   432.56      Down        Yes – COMP

Leading stocks > +2% on Friday included CRM, UNG, FAZ, SWN, UCO

Losing stocks < -2.0% included ARUN, LDK, GES, FAS, GS, STI, POT, WLT, PCX, CLF, NDAQ, ATI, DOW, FWLT, URE

Positives – NFLX

Negatives – SPX, VIX, INDU, COMPQ, RUT, TNX, breadth and sectors weakened, AAPL, GOOG,

Interest rates TNX -0.19 moved lower and bond ETF TLT moved up 5 cents.  The Euro moved down 158 pips to 1.4151 at 5 pm on Friday.

All nine sectors moved lower on Friday.  Utilities XLU -0.12% and Energy XLP -0.12% were the strongest sectors.  Financials XLF -1.38% was the weakest sector closing near horizontal support.  If Financials break horizontal support, then the probability of the SPX heading lower than the range of its current price channel will increase.

   

SPX

Resistance: 1,344, 1,352, 1,367

Support: 1,330, 1321, 1310

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 -5.31 – large black candle confirms hanging man, below 30DMA

AMZN -0.15 – spinning top, above 30 DMA

BIDU -1.19 – bearish harami, below 30 DMA

GOOG -7.22 – large black candle confirms shooting star, below 30 DMA

NFLX +3.17 – white candle, close above 30 DMA

PCLN -2.02 – second potential shooting star, below 30 DMA

QCOM +0.08 – spinning top, above 30 DMA

NDX 100 stocks stronger than the NDX include AKAM, STX, GILD, NVDA, CTXS, NFLX, LRCX, EXPE, ALTR, CHKP, FLEX, CA, BIIB, VOD and VRTX.

Stocks weaker than the NDX include ADSK, URBN, SHLD, XRAY, DELL, BBBY, MICC, WFM, AMAT, MU, INTU, RIMM, PCAR, AAPL and FSLR.

Stocks to Watch on Monday

Holding Above 30 DMA

HUM, HLF, CSTR, DHR, A, ANF, DLR, TIF, URE, TLT, MHS, GES, SMH, UNP, VECO, HAS, UAL, GMCR, RVBD, FAZ, JNPR, ACN, ICE, CMG, SWN, VMW, ATW, CF, CREE, JDSU, SWK, CRM, IAG

Moving Above 30 DMA = 0

Moving Below 30 DMA = 3

ARUN, STI, V

Staying Below 30 DMA

AMD, ESI, GLW, SNDK, ATI, CIEN, NYX, CHL, DOW, F, NVDA, FWLT, ZION, CAT, IL, NDAQ, SWKS, VLO, WDC, MCP, SINA, WLT, UNG, FAS, LVS, SOHU, UCO, ANR, DE, NETL, NGLS, PCX, AGU, AKS, FCX, IPI, LDK, SLB, TSL, CLF, DECK, NTES, POT, JEC, SLW, GS, CDE, TBT, MOS, X, CAM, BAC, CRUS

Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral