I See a MACD a Risin', I See a Rally on the Way...SPX Closes 1,176, Forms Weekly Piercing Line Pattern...

The SPX rose +17.53 and closed at 1,176.80.  Thursday’s potential bear flags including CAT, IBM, AMZN, BIDU, GOOG, NFLX, PCLN and QCOM moved lower at the open and reversed like the broad market and closed higher for the day. 

NDX leaders AAPL, AMZN, BIDU, NFLX, PCLN and QCOM all gained more than the NDX, only GOOG gained less.

After the formation of a potential double bottom, a MACD histogram bullish divergence and a pause pull back on Thursday; buyers took control and stocks closed higher on Friday which was confirmed by a rising MACD histogram.

Equally impressive were the bullish candles the SPX Piercing Line, the INDU Bullish Engulfing and the NDX and RUT Bullish Harami on the weekly charts accompanied by a weekly confirmation with a rising MACD histogram.  In this bull market since March 2009, a rising weekly MACD has led to at least modestly higher prices and in several instances, significantly higher prices.

Also our posture turned Bullish as the MF Green Line moved out of the lower reversal zone on Friday.  It is time to take One Green Arrow trades again.

(click image to enlarge)

NDX bullish engulfing, below 30 DMA +2.55%

SPX hammer, below 30 DMA +1.51%

INDU hammer, below 30 DMA +1.21%

COMPQ bullish engulfing, below 30 DMA +2.49%

RUT hammer-like white candle, below 30 DMA +2.58%

Breadth strengthened as advancers led decliners 5.03 to 1 on the NYSE and 3.67 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      2,532           2,013

Decliners           503                548          

Index         Change    Close    Direction    Confirmation

VIX                -4.17      35.59      Down           Yes – SPX

SOX             +9.45     345.78      Up                Yes – COMPQ

Leading stocks > +2% on Friday ARUN, TIF, RVBD, KKD, ZAGG, COH, GMCR, JDSU, AKS, VMW, A, UAL, FFIV, SINA, DECK, TSL, INFA, MCP, ATI, CRM, POT, ENTR, NVDA, CROX, NETL, LVS, DE, CREE, CLF, PCX, ANR, X, MOS, SLW, CRUS, ANF, HUM, TPX, CMG, GES, FAS, CIEN, NKE, URE, CDE, SOHU, CF, SWK, WLT, CSTR, SNDK, JNPR, VECO, GLW, WDC, FCX, SLB, CAT, ZION, HLF, SWKS, NDAQ, DHR, V, SMH, HAL, IBM, LNKD, RCP

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

Eight of nine sectors moved higher on Friday.  Materials XLB +2.11%, Consumer Discretionary XLY +2.09% and Industrials XLI +2.08% and were the strongest sectors.

Interest rates TNX closed -0.34 at 21.88, bond ETF TLT rose 1.06 and Financials XLF was up 11 cents.  The Euro moved up 118 pips to close at 1.4497 at 5 pm on Friday.

SPX

Resistance: 1,177, 1,200, 1,225

Support: 1,160, 1,146, 1,134

The short term 3 day trend is up.

The six-month trend is down.

The twelve-month trend is neutral.

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 +9.86– large white candle, close above 30 DMA

AMZN +7.24 – large white candle, below 30 DMA

BIDU +6.61 – large white candle, below 30 DMA

GOOG +6.82 – white spinning top, below 30 DMA

NFLX +6.06 – bullish engulfing, below 30 DMA

PCLN +19.91 – large white candle, below 30 DMA

QCOM +1.99 – bullish engulfing, below 30 DMA

NDX 100 stocks stronger than the NDX include GMCR, ILMN, ERTS, FFIV, MYL, MU, BIDU, CERN, WFM and LINTA.

Stocks weaker than the NDX include YHOO, NTAP, VOD, VRTX and CTRP.

Stocks to Watch on Monday

Holding Above 30 DMA = 5

FAZ, TLT, CF, CHL, CDE, SLW

Moving Above 30 DMA = 7

DE, GMCR, KKD, MOS, NKE, POT, V

Moving Below 30 DMA = 0

Staying Below 30 DMA

NDAQ, LDK, ZAGG, CREE, NGLS, NTES, CROX, MCP, CDE, DECK, LVS, SOHU, HLF, CMG, SNDK, SWKS, TPX, ESI, ANF, COH, FCX, GS, SLB, WLT, SINA, SWN, DOW, UCO, UNP, VMW, CLF, ANR, ATI, CAT, CIEN, CRM, CRUS, DLR, FAS, ICE, JNPR, SMH, STI, TIF, URE, WDC, AKS, CSTR, DE, PCX, TBT, X, ZION, NETL, DHR, FFIV, SWK, ARUN, RVBD, HUM, ENTR, INFA, A, F, GES, BAC, TSL, UAL, VECO, NVDA, FWLT, JDSU, GLW, IL

Intermediate Term Market Trend: Down

Short Term Market Trend: Up

Removed –ACN, AGU, ATW, CAM, CY, HAS, IAG, MHS, UNG, WTW

Added – HAL, IBM, LNKD, RCL