SPX Pulls Back and Bounces Again on Thursday...

Seven of nine sectors moved higher on Thursday, XLF, XLY and XLK were the strongest sectors.  The Jobs and Unemployment report is released Friday morning before the open. 

Money Flow

Euro      -152 pips   1.2784

TNX       -0.02             19.93

TLT        -0.21           117.80

XLF       +0.18             13.34

SPX      +3.76        1,281.06

VIX         -0.74             21.48

NDX +0.83%

COMPQ +0.81%

RUT +0.67%

SPX +0.29%

INDU -0.02%

Money Flow did not follow the Euro lower as bonds fell, TNX was near unchanged and XLF and SPX moved higher. 

The divergence between the Euro which has gone to new lows since its Thanksgiving week low and the SPX and XLF which have made higher lows and higher highs since their Thanksgiving lows continued on Thursday.  The VIX fell again confirming the rise in the SPX.  It is clear that big money is not looking at the Euro trading as the primary causal factor in U.S. stocks at this time.  Buying in U.S. stocks appears to be driven by improving economic data.

The SPX for the second straight day made a return move to its horizontal support at 1,267 and bounced.  The mid-October breakout chart target of 1,363 still appears probable although not within the originally expected time frame.  Tuesday’s breakout creates a new chart target of 1,332.

  

(click image to enlarge)

SPY moved up 34 cents on volume of 173.6 million shares, an increase of 46 million above Wednesday’s daily volume.  Wednesday’s classic bullish pullback on 1/3 lighter volume was followed by a support bounce on rising volume.

Breadth strengthened as advancers led decliners 1.55 to 1 on the NYSE and 1.57 to 1 on the NASDAQ.

Exchange        NYSE        NASDAQ

Advancers       1,839          1,537

Decliners         1,186             977

AAPL, AMZN, BIDU, PCLN and QCOM moved higher. GOOG moved lower.  The SPX breakout supported by breakouts in key NDX stocks AAPL and GOOG is another classic confirmation.

Leading stocks > +2% on Thursday BAC, CIEN, ESI, VECO, LNG, STI, WDC, DECK, TPX, LNKD, NVDA, FAS, CREE,  JDSU, SWKS, ZION, CRUS, F, ENTR, A, ZAGG

Losing stocks < -2.0% included GRPN, FAZ, UCO, ANF, WLT, X, ANR, SLB, TSLA, CSTR

NDX 100 stocks stronger than the NDX included SIRI, MRVL, STX, ROST, PCAR, FOSL, NVDA, ALXN, LINTA and CTXS.

Stocks weaker than the NDX include NTAP, CTRP, SHLD, GMCR, WCRX, NFLX, GOOG, VOD, CHRW and MYL.

Ten NDX stocks BIDU, DELL, EBAY, HANS, INTU, NVDA, PNRA, SIAL, SNDK and SYMC closed above their 30 DMA and two, COST and EXPD closed below making 75 NDX stocks above their 30 DMA. 

Stocks to Watch on Friday

Holding Above 30 DMA = 52

V, WDC, LDK, DLR, IL, URE, GES, CMG, DE, DOW, ENTR, FAS, HUM, SWK, UNP, F, NKE, UCO, ATI, CIEN, CRUS, SMH, SWKS, ZION, JDSU, NGLS, AKS, BAC, CF, CHL, DHR, STI, HAL, SOHU, X, A, ANR, C, CAT, CLF, CROX, FCX, GS, JNPR, MOS, POT, RCL, TPX, COH, ESI, RVBD, TBT

Moving Above 30 DMA = 4

NVDA, SNDK, TIF, VECO

Moving Below 30 DMA = 3

CSTR, LVS, PCX

Staying Below 30 DMA

ANF, IBM, NDAQ, TLT, TSL, ICE, GRPN, FFIV, NTES, FAZ, CDE, SLB, TSLA, INFA, CRM, DECK, HLF, KKD, SLW, GLW, VMW, ARUN, CREE, SWN, WLT, MCP, SINA, ZAGG, LNKD

Thirteen Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up