SPY, DIA, QQQ, IWM Hold Thursday Support...Financials Find Strength at Support in Bull Flag Pattern...

Eight of nine sectors moved higher on Friday…XLE, XLY and XLI were the strongest sectors…XLV was the weakest sector.    

Breadth strengthened as advancers decliners 2.53 to 1 on the NYSE and 1.03 to 1 on the NASDAQ.

Friday – strengthened, advancers led

Thursday - mixed

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

Monday – weakened, decliners led

SPY up .91 at 184.58 on 101.6 million shares

VIX down .21 at 14.41…

TNX up .40 at 27.12…

TLT down .62 at 109.37...

XLF up .09 at 22.11 on 39.7 million shares

AAPL down .60 at 536.786 on 7.2 million shares

FB down .96 at 60.01…on 67.0 million shares, slightly above average volume

Technical Commentary: 

SPY +0.49%, DIA +0.35%, QQQ +0.20%, IWM -0.10%.

The SPX led the broad indexes on Friday as the VIX fell.  Interest rates TNX rose as bonds and gold fell.  The SPY is forming a MACD bullish divergence.  A large number of stocks are also forming a MACD bullish divergence with many additional stocks forming a bull flag pattern.  See our list of Setups below.

In the NDX 100 point leaders were MSFT, GOOG, CSCO, INTC and CTSH while point decliners included GILD, BIIB, FB, AMGN, CELG and REGN.

Look for an opportunity to enter bounce trades according to your rules.

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

Short-term up trend Chart Targets:

SPY = 187.15, 189.25, 190.55…

QQQ = 89.39, 90.96, 92.25…

IWM = 118.31, 120.25…

Support Levels

SPY = 183.90, 182.60

QQQ = 86.40, 85.88

IWM = 113.69, 111.35

Q4 Earnings Reactions

Positive Reactions – GME, KKD, MFRM, KKD, BIG, FL, JOY, DRYS, TSL, DDD, MNST, ROST, YOKU, CRM, SHLD, ANF, TGT, DLTR, LOW, HD, M, SCTY, ZU, PCLN, DISH, INTU, AEE, MDRX, ALEX, DTV, TSLA, GRMN, SWY, KRFT, AMAT, CTRP, NVDA, SPWR, TRIP, REGN, CBOE, MCO, ATVI, AKAM, EXPE, GMCR, NXPI, ONNN, ORLY, SCSS, SWI, TWX, DIS, YELP, AGNC, KORS, KEYW, IDXX, XYL, YUM, NOV, SPG, TSN, ZNGA, ALXN, BRCM, BX, CMG, GOOG, JDSU, MTW, PHM, RYL, UA, 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 – GOGO, CIEN, COST, CSIQ, HOV, MCP, SSYS, ADSK, CRM, FSLR, SINA, ESRX, GRPN, YNDX, KO, A, GNC, WTW, VFC, WFM, ANGI, CSCO, DISCA, NTAP, RAX, CI, LNKD, TPX, VRSN, ADP, CTSH, HUM, MDC, P, TSO, TWTR, ADM, BWLD, CERN, CHRW, DDD, SFLY, GILD, 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 (104)

Reversal in progress –ADSK, A, CSX, CVX, GS, COF, GOGO, JNJ, IBM, JCI, KO, LNKD, MA, RAX, STX, WFM (16, 16%)

Reversal of Initial Reaction – FSLR, AA, AAPL, ABT, ADP, ADM, ALTR, ATI, BAX, BWLD, DISCA, CELG, CERN, CL, CSCO, CTSH, CTXS, CRUS, DD, DDD, EMC, ESRX, FAST, FDO, FSLR, GILD, GLW, HAL, HOG, HON, HUM, ISRG, KEY, KLAC, LMT, MDC, MMM, P, PCAR, POT, SFLY, SHW, SINA, SWK, TPX, TSCO, TSO, UNH, VZ,  VFC, VMW, VRSN, WDC, WHR,  XOM, YHOO, ZION (58, 55%)

The Market Forecast pointed down and is at 59.

____________________

Setups

H Breakout: MFRM, UNG, WDC,

Diagonal Breakout: CTRP, ETFC, HOG, GMCR,

Bull Flag: ATI, BAC, FAS, FSLR, IBM, JDSU, MTW, SCHW, STI, SWKS, X, Z, AAPL,

One Day: TLT, GRMN, XLNX

Potential Bullish Divergence: AAL, JNPR, SPWR, SPY, SWI, CRM, SOHU, SSYS, YELP, YNDX, YOKU, ADSK, AKAM, BIDU, CELG, CMCSA, COST, FFIV, GILD, NTAP, STX, TXN,

Gap Up: 

Gap Down:     

Bear Flag: VRSN,

At Support: C, CREE, CIEN, ESI, PANW, TPX, TSL, UAL, UBNT, V, ZION, RAX, WLT,

C- Pattern:

Moves

New Highs:  GLW, QCOM,

Gap Up:  

Gap Down:

H Breakout: GME,    

Diagonal Breakout: NTES,   

Breakout Test:

Bull Flag Bounce: MFRM, RCL, SCSS, MSFT, SNDK,

Bounce: BX, KKD, TPX, LVS, SFUN, TWTR, ROST,

MACD Divergence Bounce: CSIQ, DDD, CTSH, MNST, WYNN,

Bear Flag: LNKD,

Support Break: BBRY, GOGO, 

______________________

69 of 100 NDX stocks closed higher on Friday.

Leading NDX 100 stocks included: CTSH, SPLS, SNDK, SYMC, AMAT, TSLA, MSFT, LBTYA, AVGO, WFM

Lagging NDX stocks included: BIIB, VRTX, GILD, REGN, CELG, FB, MU, NFLX, AMGN, CTXS

Leading stocks > +2% on Friday included: GME, SCSS, KKD, CTRP, TSL, MTW, CSIQ, NTES, SFUN, WLT, YNDX, QIHU, TWTR

Lagging stocks < -2.0% included: BBRY, GOGO, UBNT, UAL, PANW, SPLK, YELP, XONE

Stocks to Watch on Monday

Holding Above 30 DMA= 28

AVGO, PCAR, ATVI, MSFT, XLNX, MAR, AMAT, KLAC, TXN, GRMN, LLTC, KRFT, FAST, MAT, BRCM, INTC, QCOM, SNDK, STX, ADI, WDC, AAPL, CSCO, NXPI, DISH, MDLZ, PAYX, ROST

Moving Above 30 DMA = 4

BBBY, MXIM, SBUX, TSCO

Moving Below 30 DMA = 0

Staying Below 30 DMA

ALTR, DTV, CTXS, INTU, NVDA, DISCA, ADP, AKAM, EBAY, ESRX, FFIV, FISV, LINTA, MYL, SIAL, WFM, VIAB, LMCA, TSLA, TRIP, ADBE, AMGN, AMZN, BIIB, CHKP, DLTR,HSIC, ISRG, SYMC, GMCR, ALXN, CERN, YHOO, FB, REGN, FOXA, CTSH, EXPE, GOOG, PCLN, WYNN, LBTYA, SBAC, COST, BIDU, MNST, MU, ORLY, SRCL, EQIX, NFLX, ILMN, CA, VRSK, ADSK, VOD, CELG, GILD, SPLS, VRTX, SIRI, CTRX,CMCSA,NTAP, CHTR, CHRW, EXPD, VIP

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Down