SPX Ends Slightly Higher on Expiration Friday...Financials Lead as Euro Pauses...

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Five of nine sectors moved higher on Friday.  XLF, XLU and XLK were the strongest sectors.

Money Flow

Euro        -39 pips    1.2966

TNX      +0.56             20.28

TLT       -1.34            116.98

XLF      +0.09             14.14

SPX      +0.88        1,315.38

VIX        -1.59             18.28

INDU +0.76%

RUT +0.29%

SPX +0.07%

COMPQ -0.06%

NDX -0.19%

Money Flow did not follow the Euro lower as TNX rose and bonds closed lower.   XLF and the SPX moved higher.  The SPX made its highest close since July 26 and is just 55 points below its May 2 high of 1,370, the SPX’s highest level since the March 2009 low.  The SPX has a new chart target of 1,428 within 12 weeks.

The VIX did confirm the barely rising SPX today with its lowest close since July 22.

As we expected and posted on Friday morning, the SPX did trade in a trading range on of just over 6 points as VIX dropped to another recent low on expiration Friday.

The trend continues up and so far and earnings season has fueled more buying than selling.  The SPX continues to be susceptible to a 20 point channel fluctuation to the downside.  The weight of the technical evidence does point to a continuation of the 16-week up trend.  Earnings season continues with an important release from AAPL on Tuesday and there are several DJIA stocks also reporting next week. 

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SPY moved up 8 cents on volume of 138.2 million shares.

Breadth weakened as advancers led decliners 1.39 to 1 on the NYSE and 1.24 to 1 on the NASDAQ.

Exchange        NYSE        NASDAQ

Advancers       1,734          1,242

Decliners         1,242             996

The earnings reaction this past week was positive for bellwethers INTC, IBM, MSFT, GS, UNP and GE.  Financial stocks JPM, WFC, C, BAC, STT and STI have also had positive reactions even when the initial reaction was down.  GOOG and ISRG on the other hand did not fare as well, as both had large negative gap reactions to their announcements.

Friday Earnings of Interest

GE beat profit, miss revenue

STI meet EPS, miss revenue

SLB beat

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Earnings season continues…

Monday – CSX, HAL, TXN, VMW, WDC

Tuesday – AMD, AKS, ALTR, AAPL, DD, JNJ, MCD, STLD, TRV, VZ, YHOO

Wednesday – ATI, ADP, BA, CTXS, COP, GLW, DAL, LRCX, NFLX, SNDK, SWK, SYMC, LCC, UTX

Thursday – MMM, ALK, AMGN, T, CAT, CELG, CRUS, INFA, ESI, JNPR, KLAC, MXIM, POT, RVBD, UA, UAL, VRSN

Friday – MO, CVX, DHI, F, HON, PG

Leading stocks > +2% on Friday SWKS, WLT, NTES, STI, CREE, SINA, IBM, ENTR, JDSU, VECO, ARUN, SLW, INFA, ZAGG, CF, TBT, MOS, WDC, CRUS

Losing stocks < -2.0% included ANF, UCO, JNPR, HUM, FCX, RVBD, TPX, TSL, PCX, A

NDX 100 stocks stronger than the NDX included SHLD, MSFT, MNST, INTC, CTRP, CELG, EA, VOD, APOL and BMC.

Stocks weaker than the NDX include GOOG, ISRG, LIFE, RIMM, NFLX, ORLY, ALXN, NWSA, SIRI and GMCR.

Two NDX stocks INFY and VOD closed above the 30 DMA and three stocks CHRW, GOOG and ISRG closed below the 30 DMA making 94 NDX stocks above their 30 DMA. 

Stocks to Watch on Monday

Holding Above 30 DMA = 73

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

Moving Above 30 DMA = 3

IBM, UAL, ZAGG

Moving Below 30 DMA = 4

GES, GRPN, ICE, UCO

Staying Below 30 DMA

TLT, ANR, TIF, PCX, ANF, FAZ, TSLA, DECK, SWN

Sixteen Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up