VIX Drops...Spikes...Ends Near Unchanged on Friday...

The SPX started Friday about 17 points higher on a better than expected July Unemployment report of 9.1% as employers added 117,000 jobs, better than the previous two months.  The SPX sold off and filled the gap up within about 30 minutes and then continued to fall to its intraday low at 1,169 around noon.  When trading was over the SPX had a 50 point trading range and was down -0.69 at 1,199.38.  The VIX was very volatile with a trading range of over 11 points between 27 and 39 closing up slightly at 32. 

PCLN gapped up $54 on the open and closed up +44.47 and closed above its 30 DMA.  Five NDX 100 stocks AAPL, GOOG, GMCR, PCLN and VOD are above their 30 DMA.

(click image to enlarge)

NDX hammer, below 30 DMA -0.58%

SPX doji, below 30 DMA -0.06%

INDU hammer, bullish harami, below 30 DMA +0.54%

COMPQ lower shadow black candle, close below 30 DMA -0.94%

RUT lower shadow black candle, below 30 DMA -1.67%

Breadth strengthened as decliners led advancers 2.88 to 1 on the NYSE and 2.36 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         799              787  

Decliners        2,304           1,862

Index         Change    Close    Direction    Confirmation

VIX               +0.34      32.00       Up              Yes – SPX

SOX              -7.10     350.22       Down         Yes – COMPQ

Leading stocks > +2% on Friday included TBT, FAZ, ANF, CROX, CF, NKE, ENTR

Losing stocks < -2.0% included WTW, ZAGG, BAC, SWKS, LDK, GMCR, FAS, WLT, SWN, ARUN, NETL, KKD, CIEN, FFIV, URE, RVBD, PCX, DLR, NVDA, LVS, CLF, CDE, CRUS, MCP, TLT, ANR, SLW, CSTR, AGU, IL, CAM, NGLS, ESI, JDSU, ATW

Interest rates TNX closed +1.00 at 25.58, bond ETF TLT fell $3.04 and Financials XLF was down 26 cents.  The Euro moved up 199 pips to close at 1.4290 at 5 pm on Friday.

SPX

Resistance: 1,225, 1,235, 1,249

Support: 1,200, 1,173, 1,160

The short term 3 day trend is down.

The six-month trend is down.

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 -3.75 – lower shadow black candle, bounce at 30 DMA, above 30 DMA

AMZN +1.22 – hammer, below 30 DMA

BIDU -2.93 – lower shadow black candle, below 30 DMA

GOOG +1.52 – hammer, bounce at 30 DMA, above 30 DMA

NFLX -4.66 –black candle, below 30 DMA

PCLN +44.47 – gap up black candle, close above 30 DMA

QCOM -0.23 – hammer, below 30 DMA

NDX 100 stocks stronger than the NDX include PCLN, GRMN, QGEN, ORLY, FLIR, PAYX, WCRX, AMGN, ADP and HSIC.

Stocks weaker than the NDX include GMCR, FFIV, APOL, NTAP, NVDA, MRVL, ALTR, CHKP, LINTA and VRTX.

Stocks to Watch on Monday

Holding Above 30 DMA

CROX, FAZ, GMCR, TLT, HLF

Moving Above 30 DMA = 0

Moving Below 30 DMA = 1

CHL

Staying Below 30 DMA

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

Intermediate Term Market Trend: Down

Short Term Market Trend: Down