SPX Finishes January Down...CMG, GOOG, FB, NFLX New All-time High Close...

Two of nine sectors moved higher on Friday…XLU, XLK and XLP were the strongest sectors…while XLY was the weakest sector. 

Breadth weakened as decliners led advancers 1.68 to 1 on the NYSE and 2.37 to 1 on the NASDAQ.

Friday – weakened, decliners led

Thursday – strengthened, advancers led

Wednesday – weakened, decliners led

Tuesday – Strengthened, advancers led

Monday – strengthened, decliners led

SPY down 1.88 at 178.18 volume 194.6 million shares, above average volume

VIX up 1.12 at 18.41…

TNX down .25 at 26.68…

TLT up .72 at 108.28...

XLF down .25 at 21.06 volume 53.6 million shares, above average volume

AAPL up .81 at 500.60 volume 16.6 million shares, above average volume

FB up 1.49 at 62.57…volume 87.8 million shares, above average volume

Technical Commentary: 

QQQ -0.27%, SPY -0.59%, IWM -0.74%, DIA -0.90%.

January Performance

SPX    -3.56%

NDX   -1.95%

RUT   -2.82%

XLU    +2.98%

XLV    +0.94%

XLK    -2.57%

XLF    -3.66%

XLI      -4.27%

XLB    -4.72%

XLP    -5.17%

XLE    -5.80%

XLY    -6.00%

FB         +14.49%

NFLX   +11.18%

GILD       +7.39%

MU          +5.93%

GOOG    +5.38%

PCLN     -1.51%

BIDU    -12.02%

AMZN   -10.06%

The SPX finished lower in January for just the third month in the past year.  The other two lower months were June and August.  The short-term market trend was neutral this week as the SPX held the 1,770 area of support five times this week suggesting that institutions are buyers at this support area, as they were back in November and December at this same horizontal level.  If support holds next week look for a bounce back to the 1,800 resistance area and then the 1,820 – 1,830 resistance area if the buyers can break 1,800 resistance.

Be prepared to trade to the downside if the SPX does break short-term support.

Monday kicks off another week for earnings with GILD, AKAM, GMCR, P, SWI, TWTR, YELP, LNKD and CBOE among other reporting this week.

Trade with the trend of the chart you are trading and move your protective stops.  Continue to follow your rules.

Short-term up trend Chart Targets:

SPY = 181.34, 183.40, 184.69…

QQQ = 88.18, 89.00…

IWM = 114.48, 116.70…

Support Levels

SPY = 179.12, 177.74, 176.36

QQQ = 86.38, 85.67, 84.93

IWM = 112.14, 111.02, 110.71, 109.31

Q4 earnings season continues into the fourth full week…

Monday – AEIS, AGNC

Tuesday – ADM, BWLD, CHRW, CME, GILD, HCA, IP, KORS, KEYW

Wednesday – AKAM, ADP, BIDU, CTSH, FISV, GMCR, HUM, MDC, MRK, NXPI, ORLY, P, SCSS, SWI, TSO, NDAQ, TWX, TWTR, DIS, YELP

Thursday – ATVI, LNKD, SIAL, TPX, VRSN

Friday – CBOE, CI, MCO

Q4 Earnings Reactions

Positive Reactions – NOV, SPG, TSN, ZNGA, ALXN, BRCM, BX, CMG, GOOG, JDSU, MTW, PHM, RYL, VIAB, V, BA, DOW, FB, LVS, QCOM, VLO, AKS, AAL, CHKP, EA, F, ILMN, LXK, CAT, RCL, JNPR, MSFT, KMB, PG, MXIM, SBUX, NFLX, FFIV, URI, UNP, EBAY, MCD, CREE, TXN, UTX, NUAN, XLNX, BHI, DAL, RF, MS, SLB, STI, AXP, SWKS, BAC, LLTC, WEN, MON, MU, STZ, APOL

Negative Reactions – CVX, MA, MAT, PCAR, AMZN, MMM, CELG, CL, XOM, ESI, HOG, OSTK, POT, SHW, WHR, BA, CTXS, EMC, TSCO, CRUS, GLW, DD, F, VMW, YHOO, AAPL, STX, ZION, HON, KSU, SWK, STT, ALTR, ISRG, KLAC, KEY, JCI, LMT, WDC, ABT, BAX, ATI, COH, FCX, AMD, IBM, HAL, JNJ, TRV, VZ, GE, COF, INTC, UNH, C, GS, CSX, FAST, AA, FDO, BBBY, SCHN

Reversal of Initial Reaction – HON, FAST, FDO, AA

The Market Forecast Green Line is at 20.

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Setups

H Breakout: BX, CIEN, CRM, TWTR, CMCSA, ESRX, FFIV, GMCR, TSLA,

Diagonal Breakout: MU, BAC, BBRY, CSIQ, LVS, MFRM, SCTY, SPLK, SPWR, UAL, DAL, ADSK, XLNX,

Bull Flag: JNPR, RCL, UNG, NTAP,

Potential Bullish Divergence: COST,      

Gap Up:  

Gap Down:

Bear Flag: FSLR, GLW, GOGO, NKE, SFUN, SOHU, TSL, X, Z, SNDK, STX, WFM,

At Support: CREE, DRYS, GLD, IBM, IWM, KKD, MCP, MS, RAX, SPY, STI, V, VRSN, WLT, XONE, YNDX, YOKU, ZION, ADBE, BIDU, DTV, EBAY, GRMN, INTC, MNST, PCLN, TXN,

C- Pattern:

Moves

New Highs: FB, ANGI, QIHU, TLT, GOOG, NFLX, WYNN,

Gap Up: TSN, ZNGA       

Gap Down: MAT, MA, CVX, AMZN,

H Breakout: GOOG, MSFT, WYNN,

Diagonal Breakout:

Breakout Test: 

Bounce: LNKD, QCOM,

MACD Divergence Bounce: SSYS, TPX,

Bear Flag: DDD, FAS, GRPN, NTES,  

Support Break: SINA,

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25 out of 100 NDX stocks closed higher on Friday.

Leading NDX 100 stocks included: WYNN, GOOG, MSFT, FB, GMCR, YHOO, BRCM, CTXS, QCOM, NFLX

Lagging NDX stocks included: MAT, AMZN, SYMC, VRTX, BIDU, FFIV, PCAR, CHKP, VIAB, ISRG

Leading stocks > +2% on Friday included: QIHU

Lagging stocks < -2.0% included: JNPR, GOGO, FAS, CREE, BBRY, XONE, ANR, YOKU, SINA, V, RCL, TSL, A, DDD, SCTY, STI, ZION, MCP

Stocks to Watch on Monday

Holding Above 30 DMA= 40

ILMN, ESRX, CMCSA, AVGO, EQIX, AKAM, FFIV, VRTX, XLNX, SBAC, AMGN, ISRG, MU, MYL, BIIB, GILD, MXIM, NXPI, TSLA, NTAP, GOLD, NFLX, CHTR, ALTR, ALXN, CHKP, REGN, CHRW, MSFT, ADSK, BRCM, CERN, FB, GMCR, GOOG, HSIC, SIAL, SRCL, WDC, WYNN

Moving Above 30 DMA = 1

QCOM

Moving Below 30 DMA = 7

AMZN, CTRX, DISH, DTV, MNST, ORLY, VRSK

Staying Below 30 DMA

SYMC, SIRI, CSCO, STX, EBAY, PCLN, QCOM, AAPL, ADBE, AMAT, CA, CELG, CTSH, EXPD, FAST, FISV, KLAC, LLTC, NVDA, PCAR, SNDK, TXN, VIP, VOD, ADI, ADP, BIDU, CTXS, GRMN, KRFT, EXPE, INTC, INTU, LBTYA, MDLZ, TRIP, VIAB, YHOO, LINTA, TSCO, ATVI, PAYX, ROST, DLTR, BBBY, FOXA, SPLS, DISCA, MAT, WFM, COST, LMCA,SBUX

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Neutral