NDX, AAPL Break Support...SPY, DIA, IWM Hold...

All nine sectors moved down on Friday…XLU, XLP and XLF were the strongest sectors.

Breadth weakened on Friday as decliners led advancers…3.50 to 1 on the NYSE and 4.18 to 1 on the NASDAQ…

Exchange      NYSE     NASDAQ

Advancers        670         473
Decliners       2,345       1,981

SPY down -2.43 at 143.39...volume 185.6 million shares

VIX +2.03 at 17.06…

TNX -0.58 at 17.68…
TLT up 1.63 at 121.74…
XLF -22 cents at 16.11…volume 61.4 million shares

AAPL down – 22.80 at 609.84…volume 26.6 million shares …

FB up 2 cents at`19.00… volume 34.8 million shares…

Technical Commentary:  Over the past year options expiration Fridays have been mostly narrow range trading days, however Friday, October expiration, like May was a strong down trend day for the broad indexes.

The day after GOOG experienced a fiasco in releasing their disappointing earnings.  AAPL experienced its largest one day loss in more than six months breaking short-term support.  Like AAPL, QQQ broke short-term support and closed at its lowest level since Aug 3 and is down -7% from its high on Sep 21. 

The SPY, DIA and IWM moved lower and closed near short-term support.  The SPY had its largest down day since June 1.  Friday was the heaviest selling volume day since Aug 2 when the SPY moved down on 199.4 million shares.  ES futures closed at its 1,424 support area while NQ closed below its 2,705 and 2,695 support levels.

The Euro pulled back 49 pips on Friday as did interest rates, XLF …bonds TLT rose as the SPY dropped…Coal stock JRCC, moved higher while ANR, WLT, BTU and CNX pulled back.

Many stocks broke support on Friday and many others are at support setting up more bearish trades on break of support.  Strong stocks include: JRCC, STT, C, DE, CTRP, SIRI with earning reports coming on VMED, RCL, WYNN, GLW and JNPR next week.

Earnings season heats up next week.

Earnings Watch:

Positive Reactions – RVBD, SNDK, WCC, EBAY, MAN, COF, RHI, LRCX, STT, MAT, ISRG, GS, C, PII, DPZ,
Negative Reactions – GOOG, IBM, APOL, CHKP, INTC, INFY, CHKP, AXP, XLNX, MSFT, CMG, MS, FLEX, AMD, ETFC, PH, APD, ALGN, MLNX,

Monday – CAT, LVS, STI, WDC, ZION, TXN, YHOO,

Tuesday – FB, NFLX, AMGN, ALTR, BRCM, CHRW, PNRA, PCAR, SIAL, VMED, JNPR, RF, VMW

Wednesday – AKAM, FFIV, ALXN, GLW, BMC, ORLY, SRCL, SYMC, ATI, CLF, ACOM

Thursday – AAPL, AMZN, BIDU, CERN, CTXS, ESRX, EXPE, FSLR, GILD, WYNN, BIIB, CA, CELG, EA, KLAC, MXIM, MYL, VRSN, VRTX, XRAY, PHM, RCL, SWI, INFA, ESI

Friday - CMCSA

Chart Targets:

SPY = 147.88 2.61 Fib
ES = 1,466.00 2.61 Fib on ESZ2
EUR/USD = 1.3095 1.60 Fib, 1.3345S&R Measuring

Short-term support at
143.09, 142.33 = SPY
1,424, 1,414.50, 1,400 = ES
2,650, 2,610 = NQ

Setups:

Bull Flag: C, DE, NTES, LVS, ANR, CNX, BTU, WLT, ACI, FAS, RCL, CLF, CRUS, DECK, DISCA, X, ATI, AKS, GLW, V, MA, TIF, JNPR, CTRP, AMGN, BRCM, CHRW, CMCSA, DTV, FAST, FISV, FOSL, EBAY, GOLD, LINTA, LRCX, NFLX, NWSA, SHLD, SIAL, SRCL, WFM, WYNN

Resistance BO Setup: TIF, BIDU, GMCR

At Support: AMZN, GILD, QCOM, FLEX, AVGO, JDSU, BBBY, CERN, COST, CSCO, ESRX, FFIV, GOOG, MNST, MSFT, MXIM, MYL, ORCL, ORLY, PAYX, PCLN, STX, SYMC, VRSN, IBM

Moves:

Gap Up: RVBD, MAN, COF, RHI, CYN

Gap Down: CMG, MRVL, ETFC, PH, APD

Support BO: AAPL, ADSK, AKAM, ALXN, BIIB, CA, CELG, EXPE, LIFE, LLTC, SBUX, NVDA, LULU, PNRA, VRTX

Resistance BO: ISRG, ADBE

Bounce:

6 OF 100 NDX stock closed higher on Friday…

Leading NDX 100 stocks included: SNDK, ORLY, CHKP, FOSL, GOLD, ISRG, VOD

Lagging NDX stocks included: MRVL, NVDA, EA, ALXN, MNST, PNRA, VRTX, CELG, EXPE, PCLN

Leading stocks > +2% on Friday included: RVBD, FAZ, INFA

Lagging stocks < -2.0% included: CMG, LDK, TSL, GES, MCP, AKS, GRPN, ESI, UCO, SINA, FAS, CSTR, DECK, C, X, JDSU, FCX, CLF, ATI, ZAGG, TBT, A, F, COH, HLF, SMH, JNPR, UAL, VMW, SOHU, DE

Stocks to Watch on Monday…

Holding Above 30 DMA
VMED, GILD, VIAB, CHRW, CMCSA, WYNN, LINTA, RIMM, SIRI, INTU, NFLX, SHLD, FISV, AMGN, BIDU, ISRG, ADBE, FOSL, LRCX, MAT, NWSA, SRCL, YHOO, EBAY

Moving Above 30 DMA = 0

Moving Below 30 DMA = 14

ADP, ALXN, CELG, EA, ESRX, FAST, MNST, MXIM, PNRA, SIAL, TXN, VRSN, WFM, XRAY

Staying Below 30 DMA

BIIB, CTSH, FLEX, GOLD, GOOG, LIFE, MYL, SNDK, AKAM, CHKP, ORCL, APOL, INFY, ORLY, VRTX, CERN, COST, SPLS, AMZN, BMC, EXPE, FFIV, GRMN, HSIC, LLTC, PCAR, PCLN, VOD, WCRX, ADSK, DLTR, DTV, NUAN, QCOM, SBUX, AAPL, ATVI, BRCM, CA, MSFT, NTAP, PAYX, XLNX, CTXS, GMCR, SYMC, CSCO, MU, ALTR, BBBY, EXPD, AMAT, KLAC, MCHP, AVGO, ROST, STX, NVDA, DELL, INTC, MRVL, KRFT

Six Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down