SPY Makes Highest Weekly Close on Third Anniversary of Bull Market...

.
Listen to Dave on tastytrade at the 122:50 mark...Click Here:  https://www.tastytrade.com/#/


Eight of nine sectors moved higher on Friday.  XLF, XLY and XLK were the strongest sectors.

Breadth weakened  as advancers led decliners 2.34 to 1 on the NYSE and 2.49 to 1 on the NASDAQ.

Exchange        NYSE       NASDAQ

Advancers       2,088          1,806

Decliners           889             724

Friday, was the third anniversary of the beginning of the current bull market as the SPX made its 676.53 closing low on March 9, 2009. 

The SPY made its highest weekly close at 137.57.  The SPY moved moved up 53 cents on 122.8 million shares.

AAPL, INTC, SBUX and QCOM accounted for 5.78 points of the NDX 9.67 point rise as 77 NDX stocks moved higher.

Week in Review

- The RUT led the rally on Thursday and Friday

- NDX makes New High Close

- The SPY closed within 16 cents of its Mar 1 closing high

- SPX rallies from a -2.76% correction low on Tuesday

- VIX closes near Feb 3 low

- U.S. reports February 227,000 job gains on Friday and positive revision for January

- Euro sells off on Monday and Tuesday on Greece concerns, rallies Wednesday Thursday and down again Friday as most Greek creditors accept debt swap

Money Flow

Euro      -151 pips   1.3120

TNX        +0.24         20.38

TLT        +0.23        115.97

XLF        +0.12         14.89

SPX       +4.96     1,370.87

VIX         -0.84         17.11

RUT +1.32%

COMPQ +0.60%

NDX +0.37%

SPX +0.36%

INDU +0.11%

Money Flow was atypical on Friday as the Euro and VIX moved lower and the TNX, bonds TLT, XLF and SPX moved higher.  It is not surprising that the markets behaved atypically in the context of the Greek debt swap which is non-typical event.

The VIX moved lower and did confirm the SPX move up on Friday.

The improving U.S. economic situation and the lower VIX suggests that institutions are not seeing a good reason to be persistent sellers, and we look for money to continue to flow into stocks, perhaps on a rotating basis which could leave the broad indexes in a trading range. 

The Jan 18 SPX breakout has an intermediate term chart target of 1,427 within 12 weeks of the breakout, and clearly has taken a rest pulling back from it 161.2% Fib extension.

(click image to enlarge)

The SPX trend is as flat as it has been over a 10-day period the current move began on Dec 20.  For this reason it is important to be aware of the potential for a trend change to sideways.  Should a trend change occur, traders will likely need to adjust their strategy to one of the four sideways strategies that I teach.  I discussed this in my Thursday evening webcast.  If you do not know these four strategies, post a comment in the comment section and if there is enough interest I can explain these.  Otherwise I will conclude everyone already knows.

If the Euro is weak next weak, the TNX falls and bonds rise this combination could setup another pull back to support with a short-term sideways trend.  Otherwise we will look for a potential breakout of resistance which could occur with the financial sector breaking out of resistance.

This past week was Bull Flag Week as more than forty of the stocks in our 30 DMA list had Bull Flag Entries.  We alerted you to these Setups throughout the week.

Strongest Moves included: CHL, HLF, SINA, NTES, VECO, CMG, NKE, TPX, CRM, GES, ICE, TIF, ANF, C, COH, SWK, A

(click image to enlarge)

Look at the Bull Flag Entries in our Wednesday and Thursday posts for potential Breakout Setups beginning on Monday.

Leading stocks > +2% on Friday included MCP, WLT, CHL, TSLA, VECO, TSL, ARUN, AKS, NTES, CLF, SINA, PCX, HLF, X, WDC, JDSU, CREE, ANF, ANR, FAS, SNDK, PCS

Losing stocks < -2.0% included CF, FAZ

NDX 100 stocks stronger than the NDX included FSLR, SHLD, MNST, KLAC, RIMM, SBUX, NTAP, FOSL, SIRI and SNDK.

Stocks weaker than the NDX include GMCR, CTRP, WYNN, WCRX, EXPE, AMZN, DELL, VOD, GOOG and PCLN.

Seven NDX stocks AMGN, FFIV, INTU, KLAC, MYL, PAYX and SYMC closed above the 30 DMA and one GOOG moved below making 70 NDX stocks above their 30 DMA.

Stocks to Watch on Monday

Holding Above 30 DMA = 43

CMG, NKE, CRUS, SWKS, NGLS, CHL, TPX, HLF, LNKD, LVS, CSTR, CRM, INFA, SWI, VMW, IBM, TSLA, GES, V, ICE, TIF, UCO, DLR, SNDK, SINA, ANF, BAC, C, COH, FAS, GS, NTES, SWK, VECO, ZION, A, CREE, DHR, STI, SWN, TBT, WDC, ZAGG

Moving Above 30 DMA = 9

ARUN, DOW, F, FFIV, JDSU, KKD, MCP, NDAQ, PCS

Moving Below 30 DMA = 1

CF, GLW

Staying Below 30 DMA

FAZ, TLT, RVBD, URE, CAT, CROX, MOS, POT, SLW, CDE, LDK, SLB, SMH, ENTR, HAL, JNPR, UNP, ESI, IL, NVDA, CIEN, DECK, TSL, HUM, RCL, UAL, WLT, DE, CLF, FCX, X, GRPN, ANR, PCX, SOHU, AKS, ATI

Five Month Intermediate Term Market Trend: Up

Short Term Market Trend: Up


.