SPX Pauses with Narrow Range Day, Holding Above Thursday's S1...

Five of nine sectors moved higher on Friday. XLB +0.70%, XLE +0.68% and XLK +0.34% were the strongest sectors.

On Friday the Euro was down 38 pips to 1.4150 at 5 pm EDT.  TNX closed down -0.89 at 23.06.  TLT was up +1.16.  Financials XLF was up 1 cent.

Laggards forming reversal patterns and breakouts led the day again with PCX, X, AKS, TSL, GMCR, ATI, CRM, LDK, JDSU, ANR and CIEN as some of the biggest gainers.

The broad indices were mixed with the INDU +0.18%, NDX +0.06%, SPX +0.04%, COMPQ -0.05% and RUT -0.58%.  The SPX moved up +0.50 to close at 1,285.09.  The market paused on Friday trading in a 10 point SPX range, its smallest range in more than 3 months, while staying above Thursday’s S1 at 1,260.  There was an 11.94 point trading range on Oct. 11.

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The SPX chart indicates a price target of 1,363 in 3 to 10 weeks.  Thursday’s S1 at 1,260 is the key short-term support level to watch going into next week. 

The VIX moved down -0.93 to 24.53.  In the current bull market since March 2009, the 25 level VIX has been the key level between trend stability and instability.  Friday is the first VIX close below 25 since August 3 when the SPX closed at 1,260. 

AMZN +10.54, +5.10%, BIDU +6.23, +4.50% rose following earnings on Thursday.  AAPL, GOOG and PCLN moved higher on Friday.  QCOM moved lower.

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Of the twenty-one bull flag entry signals listed in Chart Signals on Friday Oct. 21, nineteen closed higher on Friday:  AKAM, SIRI, ADSK, NWSA, FLEX, INTU, GOOG, ADBE, CSCO, SBUX, MAT, JOYG, DTV, MXIM, BBBY, INFY, AMAT, LLTC, NTAP, INTC, LRCX.  Only DTV and BBBY closed lower.  That is a 90% one week success rate.

Breadth weakened as decliners led advancers 1.01 to 1 on the NYSE and 1.27 to 1 on the NASDAQ.

Exchange       NYSE        NASDAQ

Advancers       1,484           1,125

Decliners         1,512           1,432          

Leading stocks > +2% on Friday PCX, X, AKS, DECK, TSL, GMCR, A, CLF, ATI, LNKD, SOHU, CRM, LDK, JDSU, ANR, LVS, CIEN, SLW, BAC, HLF, SWN, COH, RCL, ZAGG, WLT, SNDK, ANF, CF, DHR, CDE, NVDA

Losing stocks < -2.0% included CSTR, SWKS, UAL, ESI, CHL, NTES, TPX

NDX 100 stocks stronger than the NDX included GMCR, AMZN, BIDU, NFLX, BMC, MU, AKAM, EBAY, SNDK and ADBE.

Stocks weaker than the NDX include EXPE, VMED, SRCL, SHLD, DTV, NIHD, APOL, CMCSA, CTXS and BBBY.

One NDX stock MU moved above its 30 DMA while EXPE and VMED moved below leaving 86 NDX stocks above the 30 DMA. 

Stocks to Watch on Monday

Holding Above 30 DMA = 82

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

Moving Above 30 DMA = 0

Moving Below 30 DMA = 3

CHL, SWKS, UAL

Staying Below 30 DMA

CROX, TLT, FAZ, GMCR

Four Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up