SPY, XLF Hold Support as AAPL, NFLX Rally...

Four of nine sectors moved higher on Friday…XLK, XLV, XLI and XLF were the strongest sectors.

Breadth strengthened on Friday as decliners led advancers…1.08 to 1 on the NYSE and advancers led decliners 1.01 to 1 on the NASDAQ...

SPY up 12 cents at 138.16...volume 201 million shares

VIX +0.12 at 18.61…
TNX -0.19 at 16.13…

TLT up 14 cents at 125.98…
XLF up 2 cents at 15.50…volume 77.2 million shares

AAPL up 9.31 at 547.06…volume 33.2 million shares …

FB down 78 cents at`19.21…volume 42.3 million shares…

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Technical Commentary:

Stocks rallied on Friday before pulling back and closing slightly positive for the day.  This price action led to the formation of many bullish harami patterns like AAPL, GOOG, KLAC, CA, NWSA, INTU and SBUX, inverted hammer patterns like XLF, VRTX, HSIC, SNDK, CELG, GILD, NTAP, MSFT, LLTC, BIDU, BRCM, INTC, EA, PNRA, EBAY, YELP and EXPD  along with piercing line and bullish engulfing patterns.

The combination of a potential MACD bullish divergence on the SPY, DIA and QQQ, buyers returning after a lower low, relatively strong sectors XLF, XLI and XLY and strengthening breadth alert us to watch for continuation of Friday’s buying in the current down trend.

The Euro traded in a range and closed down 35 pips at 1.2708 near its late June resistance at 1.2693.  TNX, interest rates were slightly lower and TLT, bonds moved slightly higher. 

Coal stocks BTU, CNX, ANR, ACI and WLT formed inverted hammer patterns while JRCC moved lower.

XLF was up 2 cents and was the fourth strongest sector.

The SPY opened lower and traded higher before closing up 12 cents.   The VIX spent most of Friday lower before closing slightly higher and did NOT confirm the SPY move up.

ES moved lower overnight, rallied in morning trade before closing at 1,376.  NQ formed a bullish harami and closed at 2,581.

The Market Forecast Green Line is pointed down in the lower reversal zone and is forming a potential bullish divergence.

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Chart Targets:

SPY = 140.68 short-term resistance
ES = 1397, 1,430 short-term resistance

EUR/USD = 1.2876, 1.3020 short-term resistance

Short-term support at
1.2693, 1.2638 = Euro

137.55, 137.07 = SPY

78.47, 76.89 = SPXL
1,380, 1,368 = ES
2,583, 2,550 = NQ

Setups:
Bull Flag: VMED, LRCX, AOL, THC, HCA, QCOM, DDS, TRIP, CTRP, TXN, WYNN, CERN, NFLX, EXPD, EXPE, RIMM, CHRW, SBUX, RCL, CHL, V, BAC, F, PCAR,  LINTA, SHLD, ISRG, LLTC, PCLN, CREE, URI, GMCR, TMO, JOE, ROVI, DWA, VAR, AAN, TER, ISIL, INGR, AVY, WHR, VMW, WDC, R, D, CIEN, JDSU, BRKR, HNT

Potential MACD Divergence:  SPY, DIA, QQQ, GOOG, CTSH, GOLD

Moves:

Gap Up: ENR, IGT

Gap Down: DIS, MCHP

 

Bounce: WTW, ATK, ALXN, FLT, TRMB, MNST

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51 of 100 NDX stocks closed higher and 2 were unchanged on Friday…

Leading NDX 100 stocks included: RIMM, SIRI, NFLX, ALXN, MNST, WCRX, BIIB, XRAY, AAPL, GRMN

Lagging NDX stocks included: MCHP, NVDA, APOL, ATVI, ESRX, GOLD, AKAM, NUAN, BBBY, SPLS

Leading stocks > +2% on Friday included: CLF, ZAGG, SWKS, UCO, RCL

Lagging stocks < -2.0% included: GRPN, MCP, ESI, FB, TSLA, CDE

Stocks to Watch on Monday…

Holding Above 30 DMA = 25
VMED, LINTA, SHLD, ISRG, LRCX, YHOO, MYL, ORLY, PCAR, TXN, CERN, CHRW, EXPD, EXPE, MXIM, NFLX, RIMM, GMCR, LLTC, XRAY, PCLN, SBUX, XLNX, STX, QCOM

Moving Above 30 DMA = 3

FLEX, HSIC, SRCL

Moving Below 30 DMA = 1
WYNN

Staying Below 30 DMA

ADBE, AVGO, CMCSA, EA, INTU, KLAC, MAT, MU, NWSA, SPLS, SYMC,

ADSK, AKAM, AMAT, AMGN, ATVI, COST, EBAY, FISV, GOLD, LIFE, MCHP, MSFT, NVDA, ORCL, PAYX, PNRA, SIRI, SNDK, WFM, FOSL, ADP, FAST, INTC, BIDU, GILD, EXPD, CTSH, PCAR, SIAL, VIAB, ALXN, CELG, ESRX, MNST, TXN, VRSN, BIIB, GOOG, MYL, CHKP,  APOL, INFY, ORLY, VRTX, AMZN, BMC, FFIV, GRMN, VOD, WCRX, DLTR, DTV, NUAN, AAPL, BRCM, CA, NTAP, CTXS, SYMC, CSCO, ALTR, BBBY, KLAC, ROST, DELL, MRVL, KRFT

Twelve Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down