Euro Falls, Financials Follow, SPX Confirms Bearish Harami...

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The SPX dropped -31.67 and closed at 1,154.23.    Each of the broad indexes confirmed a Thursday’s bearish harami as sellers drove prices down from resistance to the mid-range of the five week price sideways trend following weakness in the Euro as traders sold with continuing EU debt concerns.  The US Dollar strengthened, interest rates fell with the TNX closing at 19.15 and financial stocks moved towards support with the XLF closing at 12.23.

Seventeen NDX stocks closed below their 30 DMA including AAPL, BRCM, EBAY, GILD, JOYG, SBUX and VRSN with the total above the 30 DMA at 39.  In our 30 DMA Watch List, seventeen stocks moved below the 30 DMA with 25 remaining above.

Intermediate Posture based on the MF Green Line moved lower for the fifth straight day.

Daily Charts on Friday

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Weekly Charts on Friday

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NDX large black candle confirms bearish harami, closed below 30 DMA -2.29%

SPX large black candle confirms bearish harami, below 30 DMA -2.67%

INDU large black candle confirms bearish harami, below 30 DMA -2.69%

COMPQ large black confirms bearish harami, closed below 30 DMA -2.42%

RUT large black candle confirms bearish harami, below 30 DMA -3.02%

Breadth weakened as decliners led advancers 5.72 to 1 on the NYSE and 5.19 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers         450              412

Decliners        2,577            2,142

Index         Change    Close    Direction    Confirmation

VIX                +4.20     38.52      Up              Yes – SPX

SOX               -3.57    354.26      Up              Yes – COMPQ

Leading stocks > +2% on Friday FAZ

Losing stocks < -2.0% included FAS, TSL, HLF, URE, KKD, RVBD, X, GLW, FCX, FFIV, AKS, SLB, SOHU, HAL, MCP, C, VECO, DOW, STI, JDSU, SWN, CIEN, SWK, LDK, HUM, RCL, CLF, NDAQ, ZAGG, DLR, SINA, UCO, FWLT, SWKS, ARUN, CAT, UNP,  NKE, CDE, IL, CROX, CSTR, ZION, BAC, ATI, ANR, F, TPX, CF, TIF, VMW, DE, GS, IBM, A, CREE, TBT, CHL, LNKD, NVDA, SLW, DHR, POT, COH

All nine sectors moved lower on Friday.  Materials XLB -3.29%, Energy XLE -3.31% and Financials XLF -3.17% were the weakest sectors.

Interest rates TNX closed -0.71 at 19.15, bond ETF TLT moved up +1.20 and Financials XLF moved down 40 cents.  The Euro moved down 227 pips to close at 1.3655 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 neutral.

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 -6.66 – black candle confirms shooting star, close below 30 DMA

AMZN -5.87 – black candle after confirmed hanging man, above 30 DMA

BIDU -3.38 – closes below low of high day, above 30 DMA

GOOG -10.11 – closes below low of high day, below 30 DMA

NFLX -7.23 – new low close black candle at support, below 30 DMA

PCLN -17.64 – large black candle following confirmed hanging man, above 30 DMA

QCOM -1.14 – black candle confirms tombstone doji, closed above 30 DMA

NDX 100 stocks stronger than the NDX include MRVL, MU, STX, LRCX, SNDK, MXIM, YHOO, KLAC, LLTC and ORLY.

Stocks weaker than the NDX include VRSN, EBAY, XRAY, RIMM, INFY, FFIV, CTXS, HSIC, ESRX and CTRP.

Stocks to Watch on Monday

Holding Above 30 DMA = 24

TLT, CF, CHL, CDE, SLW, DE, GMCR, KKD, MOS, POT, V, JDSU, LVS, NTES, CSTR, SINA, DECK, ICE, NETL, NGLS, NVDA, PCX, TIF, JNPR

Moving Above 30 DMA = 1

FAZ

Moving Below 30 DMA = 17

CIEN, CLF, CMG, COH, CREE, CRUS, DLR, HLF, HUM, MCP, NDAQ, NKE, SOHU, UAL, UCO, URE, VMW

Staying Below 30 DMA

DHR, ZAGG, ARUN, FWLT, GLW, SWK, CROX, TSL, BAC, VECO, LDK, HAL, IBM, LNKD, SNDK, SWKS, TPX, ESI, ANF, FCX, GS, SLB, WLT, SWN, DOW, UNP, ANR, ATI, C, CAT, CRM, FAS, SMH, STI, WDC, AKS, TBT, X, ZION, FFIV, RVBD, ENTR, INFA, F, A, GES, IL

Five Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down