Financials, SPX Pause as SWKS, SNDK and SLB Rise...

The NDX +1.05% closed above horizontal resistance primarily on the strength of AAPL, MSFT, GOOG, INTC, AMZN, BIDU and ESRX and made its highest close since February 2001.  SNDK +9.62% did gap higher after earnings and did seem to give a lift to semiconductor stocks.  However, its modest weighting in the NDX added less than a point to 25 point rise.

The NDX is the only one of the five broad indexes that we cover that has broke above horizontal resistance, The COMPQ, SPX, INDU and RUT are still in their trading range below horizontal resistance and not yet confirming the NDX breakout.

The Euro, interest rates and financial stocks pulled back as the SPX stayed above Thursday’s S1 level to close up +1.22 at 1,345.02. 

(click image to enlarge)

NDX large white candle breakout, above 30 DMA +1.05%

SPX potential hanging man, above S1, above 30 DMA +0.09%

INDU potential bearish harami, above S1, above 30 DMA -0.34%

COMPQ large white candle, above 30 DMA +0.86%

RUT white candle, above 30 DMA +1.07%

Breadth weakened as decliners led advancers 1.09 to 1 on the NYSE and 1.02 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      1,403           1,274  

Decliners        1,543           1,306

Index         Change    Close    Direction    Confirmation

VIX                 -0.04     17.56      Down          Yes – SPX

SOX              +9.68    408.56      Up               Yes – COMPQ

Leading stocks > +2% on Friday included SWKS, LDK, SNDK, WDC, INFA, CY, ENTR, WLT, ARUN, ESI, CROX, CIEN, JDSU, TSL, MHS, CREE, MOS, SLB, JNPR, SLW, CDE, NTES, RVBD, HAS, MCP, SOHU, FFIV, CRM, SINA, CMG, IAG, NETL, CAM, NVDA

Losing stocks < -2.0% included CSTR, CAT

Gaps and Move on Friday:

(click image to enlarge)

Positives – NDX, COMPQ, SOX, TLT, AAPL, AMZN, BIDU, GOOG

Negatives – INDU, Euro, TNX

Just three of nine sectors moved higher on Friday.  Technology XLK +0.87% and Energy XLE +0.50% were the strongest sectors. 

Interest rates TNX closed -0.46, bond ETF TLT rose 72 cents and Financials XLF was down 4 cents.  The Euro moved down 65 pips to close at 1.4356 at 5 pm on Friday.

SPX

Resistance: 1,344, 1,359, 1,370

Support: 1,330, 1,321, 1310

The short term 3 day trend is up.

The six-month trend is neutral.

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 +6.01 – white candle bounce, new high close, above 30 DMA

AMZN +3.31 – white candle bounce, above 30 DMA

BIDU +3.83 – white candle bounce, above 30 DMA

GOOG +11.24 – white candle continuation, above 30 DMA

NFLX +0.77 – white candle bounce, bull flag setup, above 30 DMA

PCLN +4.36 – gap bullish engulfing, above 30 DMA

QCOM +0.52 –white candle, above 30 DMA

NDX 100 stocks stronger than the NDX include SNDK, FLEX, MU, ALXN, ESRX, AKAM, STX, YHOO, NTAP and KLAC.

Stocks weaker than the NDX include ISRG, SIAL, FSLR, FAST, QGEN, WCRX, CELG, AMGN, JOYG and SRCL.

Stocks to Watch on Monday

Holding Above 30 DMA

TIF, KKD, CROX, GMCR, TPX, AGU, CMG, HLF, VMW, ATW, NGLS, CLF, ESI, ACN, CSTR, ICE, POT, AKS, CAM, CAT, COH, CRUS, DECK, DLR, FCX, LVS, NKE, NTES, PCX, SLB, SWN, URE, V, SINA, SOHU, WTW, ANF, CDE, SLW, CF, IAG, ANR, ATI, MOS, DLR, WLT, CHL, CY, MCP, UCO, MHS, DOW, FAS, GS, STI, UNP, X, ZION

Moving Above 30 DMA = 12

CIEN, CREE, CRM, JNPR, LDK, NDAQ, NETL, SMH, SNDK, SWKS, TLT, WDC

Moving Below 30 DMA = 2

DE, TBT

Staying Below 30 DMA

DHR, FFIV, SWK, UNG, ARUN, FAZ, RVBD, HUM, ENTR, INFA, A, F, GES, HAS, BAC, TSL, UAL, VECO, NVDA, FWLT, JDSU, GLW, IL

Intermediate Term Market Trend: Neutral

Short Term Market Trend: Up