SPX, NDX Support Holds Form Inside Day...NDX Bullish Engulfing...

Buyers came in at a higher low on Friday as the Euro, interest rates TNX +0.93 and financial stocks XLF +0.12, +1.04% rose.  The SPX moved up +6.87 and closed at 1,136.43.  Each of the major indexes formed an inside day, which is a potential reversal pattern.  The VIX moved down -0.10 and closed at 41.35. 

SPY volume decreased to 307.2 million shares.

If the SPX 1,100 horizontal support holds the SPX bounces, watch for potential entry signals above the high of the inside day, on Monday.

Stronger up trending stocks with a bull flag setup include:  AAPL, ORLY, AMGN, CERN, DLTR, COST, CELG, ALXN, GMCR, BBBY, AMZN, ISRG, ROST, WFM, ATVI, FLIR, FAST, YHOO, LINTA, MXIM, MRVL, VRTX, SNDK, MU, INTC, KLAC, SBUX, BIIB, ORCL, ADSK, EBAY, ADBE, CMCSA, CTSH, LLTC, MCHP, NVDA, PCLN

Seven NDX stocks including ADBE, CTSH, LLTC, MCHP, NVDA and PCLN moved above their 30 DMA making 40 NDX stocks above the 30 DMA.  In our 30 DMA Watch List, eight more stocks moved above the 30 DMA making 22 stocks above their 30 DMA.

Intermediate Posture based on the MF Green Line is down as the green line moved down to 48.

Technical strength improved on Friday including more stocks moving above their 30 DMA.

(click image to enlarge)

NDX bullish engulfing, close above 30 DMA +1.02%

SPX white candle inside day, below 30 DMA +0.61%

INDU hammer inside day, below 30 DMA +0.35%

COMPQ bullish engulfing, below 30 DMA +1.12%

RUT bullish engulfing, below 30 DMA +1.40%

Breadth strengthened as advancers led decliners 1.72 to 1 on the NYSE and 2.13 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      1,901           1,750

Decliners        1,102              818          

Index         Change    Close    Direction    Confirmation

VIX               -0.10       41.25      Down         Yes – SPX

SOX             +7.17     359.95      Up              Yes – COMPQ

Leading stocks > +2% on Friday ARUN, SOHU, UAL, SINA, FWLT, SWK, DECK, INFA, NKE, CROX,CSTR, CLF, IL, TIF, C, VECO, NTES, COH, BAC, TBT,  PCX, TSL, FAS, VMW, ANR, SWKS, CRM, F, ESI, DOW, NVDA, SMH, V

Losing stocks < -2.0% included SLW, CDE, MOS, HAL, FAZ, SWN, ZAGG, CREE, POT, LDK

Seven of nine sectors moved higher on Friday.  Consumer Discretionary XLY +1.51% Technology XLK +1.14% and Financials XLF +1.04% were the strongest sectors.

Interest rates TNX closed up +0.93 at 18.08, bond ETF TLT moved down -2.29 and Financials XLF closed up 12 cents.  The Euro moved up 36 pips to close at 1.3498 at 5 pm on Friday.

Resistance: 1,146, 1,160, 1,177

Support: 1,134, 1,117, 1,100

The short term 3 day trend is down.

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 +2.48 – bullish engulfing inside day, above 30 DMA

AMZN +0.38 – white candle inside day, above 30 DMA               

BIDU +0.22 – white candle inside day, below 30 DMA

GOOG +4.85 – piercing line inside day, close below 30 DMA

NFLX +0.03 – inverted hammer, below 30 DMA

PCLN +9.04 – piercing line inside day, close above 30 DMA

QCOM +0.26 – bullish engulfing inside day, below 30 DMA

NDX 100 stocks stronger than the NDX include CTRP, YHOO, FSLR, MRVL, ALXN, MU, NWSA, AKAM, VRTX and DELL.

Stocks weaker than the NDX include ESRX, ILMN, MAT, GRMN, CELG, BBBY, LINTA, ADP, BIIB and TEVA.

Stocks to Watch on Monday

Holding Above 30 DMA = 14

TLT, GMCR, V, DECK, ICE, SNDK, CMG, COH, CRUS, HUM, NDAQ, UAL, IBM, FAZ

Moving Above 30 DMA = 8

ARUN, CROX, INFA, NKE, NVDA, SMH, SWKS, TIF

Moving Below 30 DMA = 0

Staying Below 30 DMA

ANF, CHL, CRM, DHR, HLF, JDSU, LVS, NGLS, SLW, SWN, TPX, A, CIEN, CREE, CSTR, DE, ENTR, FFIV, RCL, STI, URE, VMW, ATI, CF, DOW, GES, IL, 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

Seven Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Neutral