Thursday, May 17, 2012

SPX Drops to 1,304 Following Continued Weakness in Euro, TNX and XLF...


The SPY fell again on a weaker Euro, falling interest rates and financial stocks and rising bonds.  The SPX closed at 1,304 just above its 1,300 support area.

Reports indicate that FB will go public at 38 on Friday and start trading at 11:00 am EDT.  IPO trading is generally very speculative with a lack of historical trading activity.

All nine sectors moved lower on Thursday. XLU, XLE, and XLP were the strongest sectors.

Breadth weakened as decliners led advancers 6.34 to 1 on the NYSE and 4.06 to 1 on the NASDAQ.

Exchange        NYSE       NASDAQ
Advancers         420             497
Decliners         2,665          2,019

SPY moved down 51 cents on 207 million shares…

AAPL was down -7.09 to 546.07 on 20 million shares...

HLF +7.07, +16.66% following Einhorn rumors...

SPLS -0.84, -5.69% following earnings Wednesday morning

DLTR, ROST and SHLD report earnings this week.


Technical Commentary:

At Midday the SPY fell to 131.50, bounced and rose to 132.25 and then fell and broke the 131.50 support and moved to its break of support target at 130.75.

The Euro fell another 33 pips to close at 1.2681. TNX fell to a new all-time low at 17.02.closed 0.12 lower, at its lowest level since October 4, 2011. JPM collapsed -1.53. The VIX rose 2.22 to 24.49 its highest close since Dec 15.  The VIX is near the critical 25 pivot level.

The Euro continues to fall in overnight trade. The failure of the Euro to find support has been a contributing factor in the fall of the broad market.

XLF closed down 29 cents.




6 of 100 NDX stocks closed higher on Thursday…


Leading NDX 100 stocks included FSLR, CTRP, GOLD, RIMM, SHLD,  AKAM

Lagging NDX stocks included ORLY, SIRI, DLTR, STX, SPLS, PNRA, EXPE, LINTA, BBBY, BIDU

Leading stocks > +2% on Thursday included FAZ, NTES

Losing stocks < -2.0% included HLF, TSL, LNKD, ANF, UAL, FAS, TPX, PCX, LDK, CROX, URE, SINA, CIEN, GRPN, SWKS, ATI, GES, SWK, WDC, DLR, MCP, AKS, RCL, TBT, COH, TIF, CLF, CREE, JDSU, LVS, NKE, CMG, STI, MOS, SOHU, V, ZAGG, TSLA, CRM, ZION, RVBD

Stocks to Watch on Friday

Holding Above 30 DMA = 6
TLT, CRUS, SWI, VECO, FAZ, GRPN

Moving Above 30 DMA = 1
NTES

Moving Below 30 DMA = 2
LNKD, UAL

Staying Below 30 DMA
CHL, LDK, URE, CREE, TSL, STI, WDC, DLR, 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

Eight Week Intermediate Term Market Trend: Down
Short Term Market Trend: Down

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