SPX Nears Resistance as Financials Rise...

On Thursday Financial stocks bounced following the European Central Banks raising rates and the ADP payroll report before the open.

The SPX was up +14.00 to close at 1,353.22.  As of Thursday the SPX has moved 84.8% of its April to June 112 point trading range.

 AAPL, AMZN, BIDU, GOOG, NFLX, PCLN and QCOM all finished higher on Thursday.

Thursday’s bounce in the Euro and interest rates seems to suggest that the two day increase in the dollar and the down tick in the Euro and interest rates may be a fake out.

The SPY staying above Friday’s S1 turned out to be buyers stronger that profit takes.   Stay with your trades according to your rules.

(click image to enlarge)

SPX large white candle, above 30 DMA +1.05%

INDU large white candle, above 30 DMA +0.74%

COMPQ gap large white candle, above 30 DMA +1.36%

RUT large white candle, above 30 DMA +1.52%

Breadth strengthened as advancers led decliners 3.68 to 1 on the NYSE and 3.30 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      2,372            2,007

Decliners           643               608

Index              Chg.    Close    Direction    Confirmation

VIX                 -0.39     15.95     Down          Yes – SPX

SOX               +8.61   420.40     Up              Yes – COMPQ

Leading stocks > +2% on Thursday included SWKS, CY, ESI, FAS, JNPR, UCO, FCX, PCX, LVS, ANR, DECK, ATI, WDC, ARUN, VECO, ANF, RVBD, MCP, CRUS, CIEN, URE, SMH, JDSU, V, DE, ACN, GES, CLF

Losing stocks < -2.0% included FAZ, LDK, HUM

Positives – SPX, INDU, COMPQ, RUT, VIX, TNX, XLF, AAPL, GOOG, PCLN, Euro

Negatives – TLT

Eight of nine sectors moved higher on Thursday.  Financials XLF +1.62% and Materials XLB +1.55% were the strongest sectors.  Healthcare -0.06% was the weakest sector.

Interest rates TNX moved up +0.54, bond ETF TLT moved down 28 cents and Financials XLF rose 25 cents.  The Euro moved up 38 pips to close at 1.4357 at 5 pm on Thursday.

SPX

Resistance: 1,359, 1,370

Support: 1,344, 1,330, 1,321

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 +5.44 – white candle, horizontal breakout, above 30 DMA

AMZN +2.55 – white candle, above 30 DMA

BIDU +1.17 – doji, above 30 DMA

GOOG +11.24 – large white candle, close above resistance, above 30 DMA

NFLX +1.46 – potential shooting star, above 30 DMA

PCLN +11.21 – large white candle, above 30 DMA

QCOM +0.56 – white candle, breakout setup, above 30 DMA

NDX 100 stocks stronger than the NDX include KLAC, URBN, RIMM, SHLD, CTRP, LRCX, MU, FLEX, PCAR and AMAT.

Stocks weaker than the NDX include ISRG, ILMN, BIIB, LIFE, COST, QGEN, SBUX, NWSA, INTU and VRTX.

Stocks to Watch on Friday

Holding Above 30 DMA

TIF, KKD, CROX, GMCR, HUM, INFA, TPX, AGU, CMG, CRM, HLF, NETL, VMW, ATW, NGLS, CHL, CLF, ENTR, ESI, ACN, CSTR, ARUN, FFIV, ICE, POT, RVBD, TBT, A, AKS, CAM, CAT, COH, CRUS, DECK, DLR, DOW, FCX, LVS, NKE, NTES, PCX, SLB, UNP, WDC, ZION, DE, FAS, GES, MOS, NDAQ, SWN, URE, V,  X, DHR, SINA, SMH, SWK, CY, F, HAS, SOHU, WTW, ANF, CDE, SLW

Moving Above 30 DMA = 10

ANR, ATI, GS, JNPR, MCP, SNDK, STI, SWKS, UCO, WLT

Moving Below 30 DMA = 1

LDK

Staying Below 30 DMA

BAC, TSL, CF, FAZ, TLT, UAL, UNG, IAG, VECO, CREE, NVDA, FWLT, MHS, JDSU, GLW, CIEN, IL

Intermediate Term Market Trend: Neutral

Short Term Market Trend: Up