SPY Gains on Rising Volume...AAPL Forms Hammer...

Markets are closed Monday for Labor Day and open again on Tuesday.

Eight of nine sectors moved higher on Friday…XLE, XLB and XLK were the strongest sectors.

Breadth strengthened by more than double as advancers led decliners 2.35 to 1 on the NYSE and 1.68 to 1 on the NASDAQ…

Exchange      NYSE    NASDAQ

Advancers     2,046       1,547

Decliners          870          919

Friday Highlights:

SPY gained 67 cents…closing at 141.16…volume was 151.9 million shares, its highest level of the week and more than 50% above its 20 day average volume…

VIX down -.36 at 17.47…confirms gain in SPY

Euro up 67 pips at 1.2572…

TNX - .58 at 15.62…non-confirmation of falling dollar

TLT up 1.78 at 127.72…

XLF up 11 cents at 15.16…

Gold +35.50 at 1692.62…confirms falling dollar

Oil +1.94 at 96.56…confirms falling dollar

AAPL up 1.37 at 665.24…volume 12.1 million shares …formed a bullish hammer

FB down 1.03 at 18.05… volume 58.7 million shares…made a new low

The Market Forecast green line is in upper zone. 

YTD At a Glance

                        August          YTD

Sector ETF

XLY                 +4.62%          +17.52%

XLK                +4.20%          +20.70%

XLF                 +3.41%          +17.52%

XLE                +2.70%            +4.38%

XLB                +2.32%            +7.41%

XLI                  +1.54%            +8.73%

XLV                +1.17%          +13.14%

XLP                -0.47%           +10.47%

XLU                -4.14%             +2.92%

Industry ETF

XHB                +12.12%        +38.93%

XSD                  +4.41%          +2.67%

XRT                  +3.57%        +16.99%

XOP                  +2.95%          +0.51%

XME                 +2.86%        -15.92%

XPH                  +1.71%        +15.02%

XES                  +0.70%          -3.85%

XBI                    -1.50%         +33.33%

SPY                +2.51%          +13.55%

AAPL              +9.39%          +64.96%

STX                 +7.67%          +98.82%

EBAY              +7.16%          +56.51%

EXPE              -9.66%           +78.27%

Technical Commentary: The SPY moved up 67 cents on 151.9 million shares bouncing up at horizontal support rising near diagonal resistance.  With Friday’s bounce protecting to the downside became unnecessary.

The current diagonal channel on the SPY is a trend continuation pattern.  Chart Signals sees  that the current uptrend is likely to continue.   Friday’s strength in bellwethers INTC, MSFT and ORCL along with strength in the Euro support this view.

(click image to enlarge)

The INDU and SOX also bounced today as did some individual stocks like QCOM and IBM and SHLD.

The Euro rose to resistance in its sideways consolidation and the RUT formed a hammer above short-term support.  XLF bounced off support and confirmed its bullish hammer.

A strengthening Euro led to a bounce in gold as we had expected last week.  The move was delayed but did occur on Friday.

Chart Targets: 

SPY = 143.10 S&R Measuring

ES = 1,425.75 S&R Measuring

Short-term support at

140.22, 139.80 = SPY

1,403, 1,395, 1,387 = ES

2,750, 2,743, 2,700 = NQ

SETUPS…

At Support: DECK, HLF, MOS, RVBD, SOHU, SWI, ZION, BRCM, CHL, FFIV

Flag:  CRUS, ICE, INFA, JNPR, LVS, NKE, RCL, STI, AAPL, KORS, CROX, F

Channel at Support:  QCOM, NFLX, SHLD, GRMN, IBM, SLB, WDC, TSL

Hammer Candle: AAPL, BRCM, FFIV, FLEX, GMCR, QCOM, SNDK, VRSN, XLNX, A, ATI, BAC, CREE, CROX, DE, JDSU, RVBD, LVS, SWI, VECO, VMW

Bounce:  CDE, FCX, SWKS, AKS, UCO, GLW, EA, ESI, GLD, NTES, TLT, ESRX, CRM, DE, DHR, FAS, MOS, SDRL, SMH, V, ADSK, AMGN, APOL, CELG, EBAY, INTC, MSFT, ORCL

75 of 100 NDX stocks closed higher on Friday…

Leading NDX 100 stocks included: GOLD, EA, ALTR, INTC, LRCX, ADSK, EBAY, FLEX, AMAT, LLTC

Lagging NDX stocks included: PNRA, NFLX, DELL, COST, FOSL, STX, ADBE, DTV, BIDU, CERN

Leading stocks > +2% on Friday included: CDE, AKS, FCX, MCP, SWKS, ESI, UCO, GLW, NTES

Lagging stocks < -2.0% included: FB, ZAGG, TBT

Stocks to Watch on Tuesday…

Holding Above 30 DMA = 36

WDC, UCO, TPX, GS, RVBD, SWI, CROX, CRUS, DHR, SWKS, CREE, C, FAS, FCX, JDSU, NKE, RCL, STI, TIF, BAC, CDE, CRM, SINA, SOHU, F, DECK, ZION, ANF, INFA, ICE, LVS, LNKD, HUM, URE, COH, GLW

Moving Above 30 DMA = 5

CSTR, MOS, SMH, TLT, V

Moving Below 30 DMA = 1

TBT

Staying Below 30 DMA

CIEN, JNPR, SLB, VECO, AKS, IBM, SWK, ATI, TSL, TSLA, X, ANR, GES, VMW, DE, HLF, A, CHL, NTES, GRPN, CLF, DLR, ZAGG, FAZ, CMG, ESI, UAL, FB, LDK, MCP

Twelve Week Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral