NDX, AAPL, AMZN, BIDU, NFLX, PCLN and QCOM Form Bullish Engulfing Patterns...

The SPX opened lower as futures moved down overnight. I reminded you in this morning’s post that gaps tend to reverse sometime during the first 30 minutes. The SPX did reverse after an early sell off and moved higher. Financial stocks were lower all day with XLF closing down 15 cents which kept the SPX and INDU in negative territory.

The NDX which has no financial stocks actually rose +0.86% as key NDX stocks AAPL, AMZN, BIDU, NFLX, PCLN and QCOM outperformed. The COMPQ and RUT were also positive for the day.

With just two weeks until earnings season starts on July 11 when AA reports earnings, it appears that institutions have started to buy key stocks in anticipation of positive earnings. Even the SOX formed a bullish rising 1.47% to close at 402.56.

Decliners 1,747 led advancers 1,263 on the NYSE. The VIX moved up +0.77 to 19.29 and did confirm the move down in the SPX.

SPX hammer, below 30 DMA -0.28%
INDU hammer, below 30 DMA -0.49%
COMPQ bullish engulfing, below 30 DMA +0.66%
RUT bullish engulfing, below 30 DMA +0.35%

Leading stocks > +2% on Thursday: WDC, RVBD, UAL, SWKS, CRUS, WLT, NETL, DECK, CHL, CIEN, NVDA, FAZ, JDSU, CLF, ENTR, FFIV, JNPR, CROX, KKD, TPX, CMG, ARUN, SINA, SWK

Losing stocks < -2%: UCO, URE, IAG, DLR, FAS, NDAQ, UNG

Bond ETF TLT moved up 74 cents. Financials XLF moved down 15 cents. The Euro moved down 96 pips to 1.4255 at 5 pm on Thursday.

SPX
Resistance 1,300, 1,310, 1,321
Support 1,288, 1,278, 1,267

The short term 3 day trend is up.
The six-month trend is up.
The twelve-month trend is up.

AAPL, AMZN, BIDU, NFLX, PCLN and QCOM all formed bullish engulfing patterns on this key reversal day.

NDX 100 stocks stronger than the NDX include BBBY, STX, RIMM, MRVL, BIDU, MU, NVDA, PAYS, NFLX, FFIV, AAPL and XLNX.

Stocks weaker than NDX include ERTS, FLEX, GOOG, XRAY, SPLS, SRCL, YHOO, CMCSA, ADP, FLIR, CERN and ILMN.

The MF Green line crossed out of the lower reversal zone on Wednesday, so it is time to take One Green Arrow trades as price crosses above the 30 DMA again.

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

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