SPX Moves Towards Support on Final Day of Q3...

All nine sectors moved lower on Friday with XLP -1.03%, XLU -1.12% and XLV -1.28%. 

You’ve likely already read that Q3 was the worst quarter for the broad indices since 2008.  Since the current lows were made on August 9, this is not really news at all. 

The eight week trend is sideways with the short term three day trend is down with price falling to support.  While Thursday’s strength appeared that Friday might give a support bounce, it did not.  We now wait for a move above Friday’s high for the next support bounce.

Traders that entered bearish trades on Wednesday with a break below the low of the high day should stay with those trades until the target is reached or the stop is hit.  Move stops to protect profits.

The broad indices all moved lower with the RUT -2.81%, NDX -2.65%, COMPQ -2.63%, SPX -2.50% and INDU -2.16%.  The SPX moved down -28.98 and closed at 1,131.42.  The VIX moved up 4.12 and closed at 42.96.

(click image to enlarge)

The SP futures sold down overnight and the SPY opened Friday down -1.60 at 114.45.  The SPY filled 1.00 of the -1.60 gap by mid-morning and then turned lower.  Just 15 minutes before the close the SPY was down just 20 cents.  In the last 15 minutes the SPY dropped -1.10 to close at 113.15.

The Euro moved down 209 pips to close at 1.3386 at 5 pm on Friday.  Interest rates TNX closed down -0.33 at 19.24, bond ETF TLT rose 2.96 and Financials XLF closed down 43 cents.  While most technical factors were negative on Friday, the potential higher low on the TNX and XLF as the SPX nears support is a potential positive.

SPY volume decreased to 288.4 million shares.

By Friday’s close the big NDX leaders like AAPL, AMZN, BIDU, GMCR, GOOG, QCOM and WYNN moved -2% to -8% lower.  Ninety four NDX stocks moved lower.

Breadth weakened as decliners led advancers 4.04 to 1 on the NYSE and 3.39 to 1 on the NASDAQ.

Exchange       NYSE        NASDAQ

Advancers         607              586

Decliners        2,456           1,992          

Leading stocks > +2% on Friday FAZ, TLT

Losing stocks < -2.0% included CF, VECO, MOS, FAS, UCO, PCX, CROX, LVS, ENTR, CSTR, CRUS, ZION, JNPR, FWLT, IL, TIF, JDSU, SWKS, CLF, CREE, UAL, ANR, DOW, HAL, GS, KKD, URE, DE, TSL, FFIV, SWK, TBT, POT, SOHU, C, ATI, X, CIEN, NVDA, CRM, AKS, UNP, ANF, STI, HLF, COH, ESI, AK, NDAQ, WDC, DHR, SWN, BAC, ARUN, GMCR, MCP, RCL, F, CMG, VMW, ICE, SMH, HUM, RVBD, DECK, FCX, NKE, SLB,LDK, TPX, IBM, GLW, INFA, SLW, V, SINA, GES, CAT, NTES

NDX 100 stocks stronger than the NDX included SIRI, TEVA, ROST, SHLD, CHRW and NFLX.

Stocks weaker than the NDX include MU, NIHD, WYNN, PCLN, JOYG, AKAM, PCAR, ADSK, EXPE and FFIV.

Twenty eight NDX stocks including AAPL, ADBE, BRCM, CMCSA, CSCO, CTXS, DELL, DTV, EBAY, ISRG, LLTC, MXIM, ORLY and WFM moved below their 30 DMA making 22 NDX stocks above the 30 DMA. 

Stocks to Watch on Monday

Holding Above 30 DMA = 8

TLT, DECK, ICE, SNDK, UAL, IBM, ARUN, INFA

Moving Above 30 DMA = 1

FAZ

Moving Below 30 DMA = 11

ANF, CMG, CRUS, ENTR, HLF, HUM, NDAQ, NKE, SMH, STI, V,

Staying Below 30 DMA

COH, GMCR, TIF, CHL, CRM, CROX, CSTR, DHR, FFIV, IL, NVDA, SWKS, TPX,  VMW, JDSU, LVS, NGLS, SLW, SWN, A, CIEN, CREE, DE, RCL, URE, ATI, CF, DOW, GES, KKD, LNKD, MOS, RVBD, SINA, UNP, WDC, CDE, CLF, DLR, F, FAS, MCP, POT, UCO, WLT, ZION, AKS, CAT, FWLT, PCX, JNPR, NTES, SOHU, ZAGG, GLW, SWK, TSL, BAC, VECO, LDK, HAL, ESI, FCX, GS, SLB, ANR, C, TBT, X

Eight Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down