SPY Reverses Thursday's Pullback as VIX Falls, AAPL Gains...

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

Breadth strengthened as advancers led decliners 3.10 to 1 on the NYSE and 1.95 to 1 on the NASDAQ.

Exchange      NYSE    NASDAQ

Advancers     2,115       1,641

Decliners          681          839

SPY moved up $1.05 on 143.9 million shares closing just two cents below its high near horizontal resistance and forming a large white candle.  The SPY made its highest close since May 29.  The SPX closed up +10.67 at 1,325.66 just below resistance at 1,335.

The Market Forecast green line is pointed up and closed above 20 for permission to once again take intermediate term trades.

AAPL was up 8.60 at 580.32 on 12.4 million shares...

FB +79 cents at 27.10 on 38 million shares...

GRPN +14 cents, +1.32%…

C Pattern Continuation: SWKS, COST, SRCL, AVGO, FISV, INTU, CMCSA, SIAL, AAPL

C Pattern Reversal:

C Pattern Entry: CSTR, CMG

C Pattern Setup: QCOM, AKAM, MSFT, SBUX, GOOG, SHLD, V, DHR, A, CTXS, VMW, ZAGG, TSLA, CRM, ORLY

Breakout: RVBD, C, JDSU, EXPD

Breakout Continuation: MNST, MCHP,

Breakout Setup: SPY, DIA, QQQ, IWM, AAPL, ICE, VRSN, CHKP, INFA, FAS, VECO, URE, ROST, CRUS, WFM, MOS, F, BIDU, VMED, PNRA, LVS

Bounce: ALXN, BBBY, DLTR

Daily/Weekly Bull Flags: MCP, SOHU, GOLD,

MACD Histogram Bullish Divergence Confirmed: ALTR, TPX, NFLX, MRVL, CROX

Technical Commentary:

The SPY opened lower, reversed and closed higher after the Euro started to rise from its overnight lows at 1.2433 on Thursday evening and Friday morning.  The short-term trend is Up and Friday’s return to just below horizontal resistance on strong breadth suggests that a continuation is the most probable move next week.  A week ago many stocks were setup with a potential MACD histogram bullish divergence, today there are numerous potential horizontal and diagonal breakouts including AAPL.

Friday Highlights:

SPY closes up 1.05

The Euro moved down 46 pips, closed at 1.2513

TNX -0.17

VIX fell -0.49, below 25 at 21.23

XLF closed +16 cents at 14.13

79 of 100 NDX stocks closed higher on Friday…

Leading NDX 100stocks included EXPE, SHLD, MU, AKAM, STX, KLAC, AVGO, ROST, FOSL, ALXN

Lagging NDX stocks included GMCR, NTAP, CTRP, BIDU, CTSH, INFY, LIFE, BBBY, AMGN, FSLR

Leading stocks > +2% on Friday included TPX, TSLA, ZAGG, RVBD, CIEN, FAS, TSL, VECO, C, COH, HUM, FB, CRUS, UAL, URE, JDSU, GES, LNKD

Losing stocks < -2.0% included PCX, X, AKS, FAZ, ATI, SINA, ANR

Stocks to Watch on Monday

HoldingAbove 30 DMA = 9

TLT, FAZ, NTES, CRUS, SWKS, CIEN, ICE, CDE, GES

Moving Above 30 DMA = 11

BAC, CMG, CSTR, DECK, DLR, F, HUM, NKE, RVBD, UAL, VECO

Moving Below 30 DMA = 1

SINA

Staying Below 30 DMA

SWI, A, DHR, GRPN, TSLA, V, ZAGG, CRM, LDK, LNKD, CHL, URE, CREE, TSL, STI, WDC, ANF, ATI, DE, GLW, IBM, SLB, VMW, ESI, FAS, FCX, SMH, TIF, UCO, AKS, ANR, JNPR, X, HLF, SOHU, CROX, LVS, PCX, RCL, CLF, MCP, SWK, TPX, ZION, INFA, TBT, JDSU, C, GS, COH, MOS

Eight Week Intermediate Term Market Trend: Down

Short Term Market Trend: Up