SPX Closes Down 18 at 1,270...

Live from the Oregon Trail the SPX closes lower for the 18th time in the last 29 days.  The SPY traded 219 million shares it highest level since last Friday when it traded 234 million shares.

The SPX formed a large black candle on Friday closing down -18.02 at 1,270.98.  Diagonal support broke on Monday and the SPX has continued to fall looking for throughout the week.  If buyers don’t appear the market will continue to break subsequent support levels.  Watch the short term levels we post every morning and evening.  If a bounce occurs follow your rules.

Some headlines are saying the six week slide is the longest weekly slide since 2002.  Sounds pretty grim?  What the headline doesn’t say is that week 2, 3 and 4 of the six week pull back were barely lower and only weeks 1, 5 are 6 were down significantly.

 While the headline is technically correct, it makes the pull back sound worse than it is.  The SPX is down just over 7% from its high.  Most of us can find other six week periods that are down more than 7% since 2002 even though they may have not been down 6 straight weeks.

Remember the media wants to suck you in emotionally by sensationalizing the news and stirring things up.  Just keep following your entry and exit signals according to your rules and don’t let the headlines distract you.

(click image to enlarge)

SPX large black candle, below 30 DMA -1.40%

INDU large black candle, below 30 DMA -1.42%

COMPQ large black candle, below 30 DMA -1.53%

RUT large black candle, below 30 DMA -1.65%

Breadth weakened as decliners led advancers 4.11 to 1 on the NYSE and 3.32 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         592               602

Decliners        2,439            1,999

Index              Chg.    Close    Direction    Confirmation

VIX                 +1.09     18.86      Up               Yes – SPX

SOX                -6.82   402.80      Down         Yes – COMPQ

Leading stocks > +2% on Friday included AKS, FAZ

Losing stocks < -2.0% included UCO, URE, ENTR, ARUN, JNPR, FWLT, CDE, F, FFIV, SLW, TPX. CY, WTW, DECK, RVBD, JDSU, GMCR, FAS, IAG, CAM, ANR, SLB, ATW, SWK, SWKS, CAT, ANF, V, HUM, WLT, DLR, SWN, CMG, LVS

Positives – TLT, XLF

Negatives – SPX, VIX, INDU, RUT, COMPQ, NDX, breadth and sectors weakened, XLE, AAPL, AMZN, GOOG, NFLX, PCLN, QCOM, Euro

All nine sectors moved lower on Friday.  Utilities XLU -0.66% and Financials XLF -0.67% were the strongest sectors.

Bond ETF TLT moved up 74 cents.  Financials XLF moved down 10 cents.  The Euro moved down 159 pips to close at 1.4346 at 5 pm on Friday.

Bounces Moved Higher: AGU

Bounces Pulled Back: TPX, ICE, ATI, A, DHR, FCX, SLB, SPY, CF, COH, CY, ESI, HUM, IAG, POT, UNP, VMW

Bull Flag Entry on Friday: VECO

Support Bounce Setups for Monday: ATW, RVBD, ACN, ANF, GES, NVDA, ENTR, FWLT, ARUN

Bull Flag Setups for Monday: TIF, GMCR, KKD, CY, CMG, INFA, CRM, MA GES, CHL, HLF, CROX, WTW, NFLX, MRVL

SPX

Resistance: 1,278, 1,288, 1,300

Support: 1,267, 1,257, 1,244

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 -5.59 – large black candle break support, below 30 DMA

AMZN -3.15 – black candle, inside day, below 30 DMA

BIDU -1.52 – inverted hammer, below 30 DMA

GOOG -7.22 – black candle break support, below 30 DMA

NFLX -3.94 – spinning top, above 30 DMA

PCLN -9.99 – large black candle, below 30 DMA

QCOM -1.27 –large black candle, below 30 DMA

NDX 100 stocks stronger than the NDX include FSLR, SHLD, FLEX, ATVI, VRTX and SNDK.

Stocks weaker than the NDX include FFIV, CTRP, ALXN, NIHD, JOYG, MRVL, VOD, RIMM, GMCR, BIIB, VMED, SPLS, NWSA, PCAR and BRCM.

Stocks to Watch on Monday
Holding Above 30 DMA
HLF, DLR, TIF, TLT, KKD, FAZ, CF, CRM, IAG, UNG, ESI, AGU, HUM, NGLS, POT
Moving Above 30 DMA = 2
AKS, CROX
Moving Below 30 DMA = 8
CHL, CMG, FFIV, GMCR, INFA, SLB, SWN, VMW
Staying Below 30 DMA
CY, V, VECO, COH, ATW, CREE, RVBD, ACN, ANF, GES, NVDA, SINA, UNP, ANR, TPX, WTW, A, CLF, CRUS, CSTR, DECK, DHR, ENTR, FCX, FWLT, ICE, SMH, SNDK, STI, URE, ZION, UAL, MHS, HAS, JDSU, JNPR, SWK, ARUN, GLW, ATI, CIEN, DOW, F, CAT, IL, NDAQ, SWKS, WDC, MCP, WLT, FAS, LVS, SOHU, UCO, DE, NETL, PCX, LDK, TSL, NTES, SLW, GS, CDE, TBT, MOS, X, CAM, BAC


Intermediate Term Market Trend: Neutral
Short Term Market Trend: Down