Thursday, May 10, 2012

SPY Forms Spinning Top...Closing Above Wednesday...Potential Support Bounce Signal...

The SPY opened higher on Thursday, rose to 136. 85 and then pulled back to close at 136.02.  The SPY formed a spinning top, that closed above Wednesday’s spinning top, a potential support bounce signal for some traders that trade a bounce off support in a sideway’s trend.

Seven of nine sectors moved higher on Thursday.  Defensive sectors XLU, XLV, and XLP were the strongest sectors.

Breadth strengthened as advancers led decliners 1.69 to 1 on the NYSE and 1.37 to 1 on the NASDAQ.

Exchange        NYSE       NASDAQ
Advancers      1,870          1,436
Decliners        1,105          1,042

SPY moved up 28 cents on 148 million shares…

 AAPL was up 1.34 to 570.52 on 11.8 million shares…

MNST +5.86, +8.97% reported earnings on Wednesday
PCLN -38.84, -5.26% reported earnings and lowered guidance on Wednesday
CSCO -1.97, -10.49% reported earnings and lowered guidance on Wednesday


Technical Commentary:

The SPY gave back early gains late in the day as the Euro pulled back.  TNX finished higher and the VIX lower.  CSCO gap lower led many tech stocks that moved up Wednesday lower on Thursday. 

After the close JPM disclosed in a conference call that it has a $2 billion trading loss from large positions in credit-default swaps that will affect its Q2 results.  JPM was down -2.74 or -6.73% after the close.  Other bank stocks and XLF moved lower.  SPY and ES futures also moved lower, but stayed above Wednesday’s support level.

Watch TNX and the Euro Friday morning to observe if JPM announcement affects the broader market or if it will be a short term impact and primarily limited to JPM.

Breakout – ADM,

Breakout Setup – WDC, CHL, EBAY, GILD, GOOG, UAL

Flag Bounce – STX, AMZN, MXIM, BIIB

Flag SetupCRUS, FIRE, BGC, CATM, LULU, GRMN, URE, DLR, LNKD, TSL, SWI, STI, ROST, ORLY, VRSN, DLTR, WCRX, CTXS, EXPE, SHLD, BA, CERN, DDD, GWR, AMGN

Potential MACD Divergence - ZION, AKAM, SWK, BRCM, FAST, BAC, FLEX

Bear Flag Setup - ADP, KLAC, PAYX, SPLS

 
48 of 100 NDX stocks closed higher on Thursday…


Leading NDX 100 stocks included MNST, NWSA, EA, STX, ATVI, FAST, ALXN, MYL, AMZN, EBAY

Lagging NDX stocks included CSCO, NTAP, PCLN, FSLR, CTXS, CHKP, FFIV, ORCL, NFLX, CTRP

Leading stocks > +2% on Thursday included TSLA, LDK, TPX, STI

Losing stocks < -2.0% included CRM, RVBD, JNPR, CROX, VMW, INFA, CIEN, CREE, TSL, SOHU, HLF, SWI, PCX

Stocks to Watch on Friday

Holding Above 30 DMA = 11
TLT, URE, CHL, LNKD, CRUS, CREE, SWI, TSL, VECO, FAZ, UAL

Moving Above 30 DMA = 0
WDC

Moving Below 30 DMA = 0


Staying Below 30 DMA
DLR, STI, NTES, NKE, ATI, ANF, AGI, ZAGG, CRM, FCX, IBM, SLB, CMG, DHR, ESI, FAS, FCX, SMH, SWKS, TIF, UCO, V, AKS, ANR, JNPR, X, HLF, SOHO, DECK, HUM, CROX, LVS, FAZ, CIEN, PCX, RCL, RVBD, CLF, MCP, SWK, TPX, X, ZION, INFA, BAC, A, TBT, F, JDSU, C, GS, TSLA, COH, GRPN, MOS, ICE, SINA, GES, CDE, LDK

Six Week Intermediate Term Market Trend: Neutral
Short Term Market Trend: Neutral

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