Dave on tastytrade at 9 am CT Friday Morning...

Defensive sectors XLU, XLV and XLP led as seven of nine sectors moved higher on Thursday. 

The Euro was up 41 pips to 1.3028 at 5pm EDT on Thursday.  TNX was up +0.12 to 19.13.  TLT was down -0.45.  Financials XLF was up 1 cent.

The broad indexes followed the Euro lower and closed down with the RUT +1.07%, INDU +0.38%, SPX +0.32%, COMPQ +0.07% and NDX -0.28%.  The broad indexes closed below their 30DMA.  The SPX moved up +3.93 to close at 1,215.75.

Since its low at Thanksgiving the Euro has rallied and retraced its rally 161% reaching a new low this week.  In contrast the SPX retraced 50% of its rally, XLF retraced about 55% of its rally with both reaching a higher low this week.  Relatively both the SPX and XLF are significantly stronger than the Euro.  With all its weakness the Euro has not been able to drive the SPX and XLF to new lows.  There are many bullish clues on the charts including the 50% Fib support on the SPY and XLF and the rise in the RUT. 

(click image to enlarge)

There are many MACD bullish divergence, higher low diagonal breakout and bull flag setups on the charts today.

Setups

MACD Bullish Divergence – A, AKAM, BIDU, CAT, CHKP, ERTS, MCP, SINA, SOHU, SWKS

Diagonal – AKAM, ANR, DOW, PCX, RCL, SWK, SPY, XLF
Bull Flag – CSTR, FAST, FFIV, GRMN, IBM, INTC, KLAC, UNP, WDC

The VIX fell -0.93 to 25.11, its lowest close since Oct 28.

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

Breadth strengthened as advancers led decliners 1.68 to 1 on the NYSE and 1.37 to 1 on the NASDAQ.

Exchange         NYSE        NASDAQ

Advancers       1,872          1,465

Decliners         1,108           1,067       

Leading stocks > +2% on Thursday IL, UAL, CSTR, URE, GES, TSL, GRPN, RCL

Losing stocks < -2.0% included DECK, PCX, ARUN, ANR, VMW, UCO, SLW, SINA, RVBD

NDX 100 stocks stronger than the NDX included VRTX, TEVA, ERTS, PNRA, VRSN, WYNN, MU, AMGN, MYL and CHKP.

Stocks weaker than the NDX include LRCX, GMCR, FSLR, DTV, BIDU, ORCL, NTAP, EBAY, NFLX and CERN.

Four NDX stocks BBBY, CELG, FAST and VOD closed above the 30 DMA making 23 NDX stocks above the 30 DMA. 

Stocks to Watch on Friday

Holding Above 30 DMA = 9

NGLS, V, WDC, IBM, LDK, NTES, UAL, DLR, TLT

Moving Above 30 DMA = 3

CSTR, IL, URE

Moving Below 30 DMA = 1

NKE

Staying Below 30 DMA

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

Eleven Week Intermediate Term Market Trend: Up

Short Term Market Trend: Down