Stocks Drop as NDX, RUT Fall From Lower Higher...NDX Led Lower By MSFT, GOOG, AAPL, FB, AMZN, and AMGN...

Eight of nine sectors moved lower on Friday…XLU, XLP and XLE were the strongest sectors…XLK was the weakest sector.    

Breadth weakened as decliners led advancers 1.89 to 1 on the NYSE and 4.83 to 1 on the NASDAQ.

Friday – weakened, decliners led

Thursday – weakened, decliners led

Wednesday – weakened, advancers led

Tuesday – weakened slightly, advancers led

Monday – strengthened, advancers led

SPY down 2.23 at 186.40 on 169.3 million shares, 43% above average volume

VIX up .59 at 13.96…

TNX down .64 at 27.26…

TLT up .72 at 108.46...

XLF down .22 at 22.17 on 48.6 million shares, average volume

AAPL down 6.97 at 538.79 on 9.8 million shares, 13% above average volume

FB down 2.74 at 56.75…on 125.4 million shares, double average volume

Technical Commentary: 

DIA -0.88%, SPY -0.13%, IWM -31%, QQQ -2.36%,.

The NDX -98.20 was pummeled on Friday as 96 NDX stocks moved lower.  Eighteen high profile NDX stocks MSFT, GOOG, AAPL, FB, AMZN, AMGN, QCOM, BIIB, PCLN, GILD, CELG, BIDU, CMCSA, CSCO, ALXN, MU, YHOO and TXN accounted for 59.8 points or 60.8% of the point move down on Friday.

The selloff occurred after a lower than expected jobs report of 192,000 new jobs created in March versus estimate of 206,000.  The report was an increase from 175,000 new jobs in February.

Interest rates TNX fell, bonds TLT rose as did the utility sector.  Gold rose as the Euro moved lower.  The DJIA -159.84, -0.96% and the SPX -23.68, -1.25 fell after making new all-time intra-day highs of 16.631.63and 1897.28 respectively on Friday morning.  This puts the SPX and DJIA in a one day bull flag pattern while both the NDX and RUT fell to support from a lower high.

In context the VIX 13.96, +0.59 made a relatively modest move up suggesting that traders were not excessively fearful going into the weekend on Friday.

Bottom line on the positive side the DJIA and SPX indexes along with sectors XLB, XLE, XLI and XLP are in a one-day bull flag, XLK is in a two-day bull flag, XLU made a new all-time high and the VIX indicates that fear remains relatively low.

On the negative side NDX and RUT fell from a lower high and u their 30 DMA as did sector XLV and XLY. The Euro and interest rates moved lower and gold moved high although it is a bear flag rally at this time. 

The other negative was the reaction of MU -1.42, -5.92% which gapped higher from Thursday’s close after reporting strong earnings after the close, but it failed to hold its initially positive earnings reaction and sold off significantly on heavy volume.

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 = 188.02, 189.25, 190.55…

QQQ = 88.04, 89.39, 90.96…

IWM = 116.23, 118.31, 120.25…

Support Levels

SPY = 186.03, 183.90, 183.63

QQQ = 86.40, 85.88, 84.37

IWM = 113.69, 111.35

Q1 Earnings Reactions

MU reported earnings Thursday, April 3 after the close.  AA will report Tuesday April 8 after the close, the traditional unofficial start of Q1 earnings season.

Positive Reactions – GME,

Negative Reactions – BBRY, MU

Reversal in progress –

Reversal of Initial Reaction –

The SPX Market Forecast green line is at 83.

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Setups

H Breakout: MFRM, ANR, RAX, NTAP,

Diagonal Breakout: FSLR, MTW, STI, Z, ZION, UNG, ROST,

Bull Flag: IBM, RCL, SCSS, UAL, MSFT, SNDK,

One Day: CTRP, FAS, GLW, GME, HOG, JNPR, SPY, X, CMCSA, DTV, GRMN, INTC, QCOM, STX, TXN, WDC,

Potential Bullish Divergence: IWM, QQQ

Gap Up: 

Gap Down:     

Bear Flag: ESI, GLD, WLT,

At Support: C, GOGO, IWM, JDSU, ANGI, CRM, DDD, QIHU, SCTY, SFUN, VRSN, XONE, BIDU, FFIV, GMCR, PCLN, WYNN,

C- Pattern:   

Moves

New Highs: ATI,  

Gap Up:  

Gap Down:

H Breakout:

Diagonal Breakout:  

Breakout Test:

Bull Flag Bounce: TLT,

Bounce: TLT,

MACD Divergence Bounce: 

Bear Flag: BBRY, CREE, CSIQ, SSYS, TSLA,

Support Break: BAC, CIEN, ETFC, KKD, MS, NKE, SCHW, SWI, SWKS, UBNT, V, P, SINA, TWTR, YOKU, AAPL, ADSK, AKAM, AMZN, CELG, EBAY, ESRX, FB, MNST, NFLX, SBUX, TRIP, XLNX, YHOO

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4 of 100 NDX stocks closed higher on Friday.

Leading NDX 100 stocks included: MYL, SYMC, SPLS, NTAP

Lagging NDX stocks included: NXPI, ILMN, ISRG, TRIP, ALXN, MU, TSLA, BIDU, GMCR, NFLX

Leading stocks > +2% on Friday included: ATI

Lagging stocks < -2.0% included: ETFC, CIEN, UBNT, CTRP, SCHW, SWKS,KKD, SWI, GOGO, GME, FAS, PANW, V, UAL, JNPR, CREE, TSL, BBRY, JDSU, SPWR, BAC, IWM, BX, AAL, RCL

Stocks to Watch on Monday

Holding Above 30 DMA= 28

MSFT, MAR, AMAT, KLAC, TXN, GRMN, LLTC, KRFT, FAST, MAT, ADI, INTC, QCOM, SNDK, STX, WDC, CSCO, DISH, MDLZ, ROST, BBBY, MXIM, CHRW, DTV, ISRG, EXPD, LINTA, SPLS

Moving Above 30 DMA = 0

Moving Below 30 DMA = 19

AAPL, ALTR, AMGN, ATVI, AVGO, BRCM, CMCSA, CTSH, DISCA, FISV, FOXA, HSIC, NVDA, NXPI, PAYX, PCAR, SIAL, VIAB, XLNX

Staying Below 30 DMA

ADP, CHKP, CHTR, EXPE, MU, SBUX, TSCO, CTXS, INTU, AKAM, EBAY, ESRX, FFIV, MYL, WFM, LMCA, TSLA, TRIP, ADBE, AMZN, BIIB, DLTR, SYMC, GMCR, ALXN, CERN, YHOO, FB, REGN, GOOG, PCLN, WYNN, LBTYA, SBAC, COST, BIDU, MNST, ORLY, SRCL, EQIX, NFLX, ILMN, CA, VRSK, ADSK, VOD, CELG, GILD, VRTX, SIRI, CTRX, NTAP, VIP

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Down