Euro Drops After Weak Data Leads Stocks Lower, Many Bull Flags Forming...

The Euro fell after new data showed a continued slowdown in Euro manufacturing and Chine output.  Interest rates, financial stocks, the broad indexes, gold and oil all moved lower.  The dollar and bonds moved higher.  VIX volatility also jumped.

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

Breadth weakened as decliners led advancers 4.32 to 1 on the NYSE and 3.82 to 1 on the NASDAQ.

Exchange      NYSE    NASDAQ

Advancers        571          516

Decliners       2,470       1,973

SPY moved down $3.04 on 205.2 million shares closing above its 30 DMA for the sixth straight day.  The SPX lost -30.18 at 1,325.51. 

The Market Forecast green line is pointed up.

AAPL was down 8.07 at 577.67 on 11.7 million shares...

FB rose 24 cents at 31.84 on volume of 21.9 million shares...

GRPN -0.17, -1.60%…

C Pattern Continuation: SAVE

C Pattern Pullback: FAS, DKS, V, TSLA, AKAM, MSFT, SBUX, CMG, ISRG, CTXS, SWKS, AVGO, AAPL, CSTR, INTU, SIAL, SRCL, FISV, SHLD

C Pattern Reversal: DXPE, SWI, ORLY, HIBB, ODFL, VMI, PIR, A, DHR, FMC

C Pattern Entry:

C Pattern Setup: CRM

Break of Support:  SOHU

At Support:  QCOM VMW, ZAGG, GOOG, TPX, MRVL, EXPD

Breakout:

Breakout Continuation:

Breakout Setup: MCP, F, VMED, VECO, ALTR, INFA, AAPL, VECO, LVS

Bounce: MCP, TFM, RVBD, BIDU, CROX

Daily/Weekly Bull Flags: MNST, EXPE, ROST, COST, GOLD, DLTR, JDSU, C, PNRA, CRUS, URE, AVGO, CSTR, QQQ, VRSN, MCHP, SPY, DIA, ICE, FAS, NFLX, ALXN, IWM,

MACD Histogram Bullish Divergence Confirmed:

Technical Commentary:

Thursday’s selloff on a moderate 205.2 million SPY shares led to many leading and coincident stocks forming bull flag patterns.  Some are in just the first day of the flag pullback and others are in the second or third day.  Watch for the higher low and bounce for potential entry.

Thursday Highlights:

SPY closes down $3.04

The Euro moved down 167 pips, closed at 1.2539

TNX -0.24

VIX rose 2.84 at 20.08

XLF closed -33 cents at 14.20

All 100 NDX stocks closed lower on Thursday…

Leading NDX 100stocks included TEVA. EXPE, MNST

Lagging NDX stocks included BBBY, CELG, GMCR, MU, STX, FFIV, GOLD, FLEX, EA, MRVL

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

Losing stocks < -2.0% included PCX, RVBD, CDE, TPX, UCO, ANR, CLF, FCX, FAS, ATI, X, CRUS, SWKS, JDSU, SWI, DECK, JNPR, INFA, VMW, WDC, TSLA, MCP, SLB, AKS, VECO, ANF, BAC, CREE, A, CRM, GLW, CIEN, C, F, SINA, STI, SMH, RCL, MOS, SOHU, URE, CROX, DOH, LNKD, TIF, GS, LVS, IBM, ICE, NTES, DHR, V, NKE, ESI, GES, DE, ZAGG, SWK, CSTR, CHL

Stocks to Watch on Friday

Holding Above 30 DMA = 29

TLT, CRUS, SWKS, CIEN, ICE, GES, CSTR, HUM, BAC, DLR, C, HLF, NTES, URE, FAS, LNKD, MOS, RCL, SMH, TSL, TSLA, V, CMG, JDSU, SINA, STI, DE, UAL, MCP

Moving Above 30 DMA = 0

Moving Below 30 DMA = 15

A, CDE, CHL, CLF, DHR, F, FCX, GLW, GS, IBM, INFA, RVBD, SLB, SWI, VECO

Staying Below 30 DMA

GRPN, FAZ, DECK, NKE, ZAGG, CRM, LDK, CREE, WDC, ANF, ATI, VMW, ESI, TIF, UCO, AKS, ANR, JNPR, X, SOHU, CROX, LVS, PCX,  SWK, TPX, ZION, TBT, COH

Five Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Neutral