SPY Up Strong in Classic Bull Flag Bounce Following Jobs Report...

All nine sectors moved higher on Friday following a better than expected Jobs Report.  XLE, XLF, and XLI were the strongest sectors each rising more than 2%.

The Jobs Report indicated 163,000 new jobs created in July compared with a forecast of 100,000.  Unemployment was 8.3%.

Breadth strengthened as advancers led decliners 4.86 to 1 on the NYSE and 3.38 to 1 on the NASDAQ.

Exchange      NYSE    NASDAQ

Advancers     2,508        1,928

Decliners         515           570

Friday Highlights:

SPY +2.71 at 139.35 on 157.8 million shares, a bull flag bounce past T1 a recent new high close, above 30 DMA for the seventh straight day.

The Euro moved up +209 pips, closed at 1.2388

TNX +0.99 at 15.77

VIX down -1.93 at 15.64, lowest close since July 19

XLF up +34 cents at 14.82

AAPL up +7.91 at 615.70 on 12.3 million shares...

FB up +1.05 at 21.09 on volume of 80.6 million shares

KYAK down -18 cents, -0.57% at 31.38 on .063 million shares

FIVE +37 cents at 29.79 on .167 million shares…

The Market Forecast green line is pointed up.

Technical Commentary:

The SPY which broke out of its ascending triangle on July 27 and tested that breakout Tuesday through Thursday pulling back in a new bull flag pattern to a higher low that bounced off its 30 DMA Thursday by rising more than a dollar by the close.  On Friday gapped higher and formed a large white candle including the gap, closing just above its previous high on Monday. 

Chart Signals looks for the nine week up trend to continue following Friday’s bounce and new high close. 

Chart Target Insight: 

SPY = 141.66 Fib extension 161.8, 143.10 S&R Measuring

ES = 1,411 Fib extension 161.8, 1,425.75 S&R Measuring

Chart Patterns

Horizontal or Diagonal Breakout: INTC, INTU, STX, WFM, A, DHR, JNPR, RCL, SMH, STI, SWI, UCO, ZION

Bull Flag Bounce: SPY, DIA, QQQ, AAPL, ADP, ADSK, AKAM, ALXN, AMZN, BIIB, CELG, COST, DTV, EXPE, GOOG, LLTC, MAT, MCHP, MRVL, NWSA, ORCL, QCOM, VMED, VRSN, CIEN, CROX, CRUS, GS, HLF, IBM, JDSU, NKE, RVBD, SLB, SWK, V, VMW, WDC

(click image to enlarge)

Pennant Breakout: BIDU

Double Bottom Bounce: IWM, DLTR, ISRG, MNST, ROST, SIAL, BAC, TBT

Setups:

Breakout: C, FAS, LNKD, URE, X,

Bull Flag: AMGN, EBAY, MU, NTAP, PCAR, PNRA, SIRI, SNDK, CHL, GES, SWKS, TPX

(click image to enlarge)

Earnings Reactions Week July 30 – August 3

Stocks Up

KLIC, VLO, YELP, AVD, HSIC, KFT, LBTYA, LNKD, MELI, MCHP, FSLR, GILD, GMCR, CMCSA, EA, GRMN, WCRX

Stable

DB, LIFE, MDC, ICE, AIG, DTV, ADP, VRTX

Stocks Down

ADM, BMC, COH, XRAY, FMC, MA, WTW, ATVI, APA, UPL, ZAGG, MCP, FISV

Earnings of Interest Aug 6 - 9

Monday: CTSH

Tuesday: ESRX, EXPD, FOSL, PCLN, SIRI

Wednesday: LINTA, MNST, NUAN, NWSA

Thursday: NVDA

93 of 100 NDX stocks closed higher on Friday…

Leading NDX 100 stocks included: EA, FLEX, ADBE, ALXN, WCRX, CTXS, MNST, KFT, XRAY, MCHP

Lagging NDX stocks included:  ATVI, FSLR, GMCR, GILD, VRTX, GRMN, TEVA, NFLX

 Leading stocks > +2% on Friday included: LNKD, UCO, VMW, CIEN, FAS, CRM, FB, ATI, LVS, CMG, ZION, COH, C, TSLA, JDSU, DECK, TPX, CLF, RCL, STI, SWK, A, CRUS, BAC, ANR, CREE, GRPN, GS, INFA, X, RVBD, TBT, JNPR, WDC, ICE, SMH, CROX, FCX, HLF, NTES, SLB, NKE, TIF, SWI, GES, IBM

Losing stocks < -2.0% on included:  MCP, ZAGG, FAZ

Stocks to Watch on Monday…

Holding Above 30 DMA = 26

URE, MOS, CHL, SLB, WDC, UCO, TPX, SWK, TIF, DLR, GS, JNPR, RVBD, SWI, CIEN, CROX, CRUS, DHR, HLF, IBM, SMH, SWKS, V, VECO, FCX, X, CREE

Moving Above 30 DMA = 14

A, C, DE, FAS, FCX, GES, JDSU, LNKD, NKE, RCL, STI, TBT, VMW, ZION

Moving Below 30 DMA = 1

TLT

Staying Below 30 DMA

ANF, ZAGG, COH, ICE FAZ, ATI, CRM, TSLA, CMG, DECK, ESI, BAC, UAL, FB, AKS, CSTR, LDK, MCP, CLF, GLW, INFA, NTES, TSL, CDE, SOHU, HUM, SINA, F, GRPN, ANR, LVS

Nine Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up