SPX Forms Inverted Hammer as Euro Sinks Further...

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Saturday News Flash – Record spending according to ShopperTrak, Black Friday sales up 7% almost $1 billion over year ago to $11.4 billion at retail stores and malls…the largest amount ever spent on Black Friday and the largest year over year increase since 2007…a 24.3% increase for Black Friday in online spending according to IBM.  This could be a catalyst for a move above of the high of the low day on Monday.


Six of nine sectors moved lower during the half day of trading on Friday.  XLU +0.51%, XLP +0.38% and XLF +0.26% were the strongest sectors.

The Euro was down 108 pips to 1.3232 at 4 pm EDT on Friday.  TNX was up +0.88 to 19.67.  TLT was down $1.78.  Financials XLF was up 3 cents.

The broad indexes moved lower for the seventh straight day with the RUT -1.21%, COMPQ -0.75%, NDX -0.72%, SPX -0.27% and INDU -0.23%.  The SPX moved down -3.12 to close at 1,158.67.

If you listened to the Weekly Wrap on Friday you heard both Tom and I, refer to the non-confirmations that are currently present.  The Euro was down, but interest rates and financial stocks were up and bonds were down, clear non-confirmations suggesting that the current short-term down trend may be weakening.

On Nov 9 when the SPX dropped 46 point to 1,229 the VIX closed at 36.16.  On Friday with the SPX 70 points lower at 1,158 the VIX closed at 34.47, more than a full point lower, an important non-confirmation. 

Also the recent low in the SPX is 60 points above its early October low which was the last time the Euro was at its current level, another non-confirmation.

The SPX was down for the seventh straight day which occurs only a small percentage of the time, which in and of itself would suggest a technical bounce next week is highly likely.

The SPX on Friday formed an Inverted Hammer which is a bullish candle pattern.  Short-term Entry signal for many traders is a break above the high of the low day or Friday’s Inverted Hammer, as I mentioned in the Weekly Wrap.

(click image to enlarge)

SPY traded 99.6 million shares, the second lowest volume day of the year, trading just 557,000 shares more that February 8.

The VIX moved up 0.49 to 34.47.

AAPL, AMZN, GOOG, PCLN and QCOM moved lower on Friday.  BIDU moved slightly higher.

Breadth strengthened as decliners led advancers 1.30to 1 on the NYSE and 2.38to 1 on the NASDAQ.

Exchange         NYSE        NASDAQ

Advancers        1,251              698

Decliners          1,630           1,663       

Leading stocks > +2% on Friday ZAGG, TBT, UAL

Losing stocks < -2.0% included TPX, TSL, LNKD, CF, JDSU, ESI, SWKS, NVDA, VECO, ENTR, MCP, ANR, DECK, CSTR, POT, WDC

NDX 100 stocks stronger than the NDX included ORLY, YHOO, EXPE, CTSH, CTRP, SRCL, INFY, DTV, PCAR and SIRI.

Stocks weaker than the NDX include NFLX, MU, AMZN, FSLR, BRCM, NVDA, WCRX, FFIV, MRVL and STX.

MU closed below its 30 DMA and SIRI closed above, leaving 3 NDX stocks above the 30 DMA. 

Stocks to Watch on Monday

Holding Above 30 DMA = 5

TSLA, NGLS, UCO, TLT, FAZ

Moving Above 30 DMA = 1

DLR

Moving Below 30 DMA = 1

DE

Staying Below 30 DMA

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

Four Week Intermediate Term Market Trend: Down

Short Term Market Trend: Down