SPX 52nd 2014 All-time High...RUT, IWM New All-time High...Important Breakout...DJIA New High...Biotech Continues to Rebound..

Six of nine sectors moved higher and two were unchanged on Friday…XLU, XLV and XLY were the strongest sectors and XLE closed 2 cents lower was the weakest.

 

Breadth strengthened as advancers led decliners 2.02 to 1 on the NYSE and 1.90 to 1 on the NASDAQ.

Friday – strengthened, advancers led

Thursday – Christmas Holiday

Wednesday – mixed, mixed

Tuesday – mixed, advancers led

Monday – strengthened, advancers led

SPY up .67 at 208.44 on 57.3 million shares

VIX up .13 at 14.50…

TNX down .14 at 22.50…

TLT up .46 at 124.41...

XLF unchanged at 24.95 on 14.7 million shares

AAPL up 1.98 at 113.99 on 33.7 million shares

FB up .01 at 80.78…on 10.6 million shares

Technical Commentary:

QQQ +0.71%, IWM +0.65%, SPY +0.32%, DIA +0.09%.

The SPX closed at a new all-time high for the 52^nd time in 2014 as volume was still light but higher after the Christmas.  The SPX was led by gains in CELG, REGN, NBR, ALXN, AES, VRTX, GILD, FCX, SRE and NI.

The big news this week is the horizontal breakout of RUT and IWM to new all-time highs.  If this breakout holds it brings to an end the year long sideways channel.  IWM short-term Chart Target: 124.07; 6-month Chart Target: 136.30

Similar to Wednesday gains in biotech/medical stocks CELG, REGN, ALXN, VRTX, GILD, AMGN and ILMN helped lift the QQQ.  The NDX formed a dark cloud cover.

GPRO +2.82, +4.25%, considered by some the Christmas product of 2014 continued to climb on the day after Christmas.  AMBA +3.89, +7.47%, a chip supplier to GPRO soared on Friday.

CAR and ESRX began to bounce after pausing on Wednesday following horizontal breakouts on Tuesday creating potential second chance entry opportunities.

Look for new high horizontal breakout setups in stocks that are up trending or reversal breakouts from stocks that recently pulled back.

AAL, EA and LRCX were added to the NDX on Monday.

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

Short-term Chart Targets:

SPY = 207.33, 209.06, 210.49...

QQQ = 106.94…

IWM = 119.90, 121.88, 124.07…

Support Levels

SPY = 207.33, 204.24...

QQQ = 103.08, 102.40…

IWM = 118.34, 116.15...

Q3 Earnings Reaction

Positive Reactions – ADBE, CIEN, LULU, AVGO, ADI, HPQ, PANW, QIHU, ADSK, JASO, ROST, SPLK, GOGO, RAX, NTES, XONE, YOKU, VJET, BABA, MNST, WFM, ABC, ACI, AMGN, BIDU, BWLD, CBOE, CLF, CLX, CNX, EA, ESRX, EQIX, EXPE, FISV, GLW, GPRO, GRPN, GT, HSY, JCI, JDSU, LNKD, LVLT, MA, MAR, MO, MTW, MYL, PCAR, FE, SCHN, STX, SWI, SWKS, TASR, V, WY, X, WHR,  AAPL, ALK, ALXN, APOL, BMY, BRCM, CAT, CELG, CERN, CHKP, CMCSA, CNI, EMC, EW, GD, HAL, HAS, HOG, ILMN, IM, KLAC, KMB, LLY, LRCX, LXK, MMM, MXIM, MSFT, N, ORLY, PG, RMD, STLD, STT, SWK, TRV, TSCO, TXN, UNP, VRSN, WOOF, YHOO, YNDX, ZION, AMD, C, CSX, DAL, GE, HON, LVS, MS, SCHW, SLB, STI, URI, XLNX, COST, BBBY, BBRY, MU, NKE, PAYX, LULU, PANW, ULTA, MFRM, SPLK,

More than 10% - GOGO, RAX, WFM, GPRO, GPRN, LNKD, BWLD, SWI, N, EW, TSCO, NKE, ULTA, LULU, PANW, MFRM,

Negative Reactions – COST, AMBA, MFRM, GME, CRM, JD, MBLY, SINA, YY, SWKS, FEYE, FSLR, PCLN, QCOM, TRIP, SCTY, SSYS, SUNE, UBNT, Z, ZU, AEM, CHRW, COH, FB, GRMN, KRFT, MDC, MRK, NEM, PNRA, RGR, SLCA, TPX, TWTR, ALTR, AMZN, BA, BTU, CMG, CREE, DECK, DNKN, DOW, EAT, F, GM, IBM, JNPR, KO, LMT, LUV, NDAQ, P, UA, VMW, XRX, YELP, AXP, BAC, COF, EBAY, GOOGL, INTC, JNJ, JPM, KEY, MAT, NFLX, WFC, AZO, ADBE, KKD, CIEN,

More than -10% - GME, CSIQ, FSLR, UBNT, ZU, AEM, P, TPX,

Reversal in progress – PCLN, TPX, KO,

Reversal of Initial Reaction – AMZN, FEYE, SWKS, Z, ADBE, ALTR, ALTR, AXP, AZO, BA, BAC, BTU, CHRW, CMG, COF, COH, CREE, DECK, DNKN, DOW, EAT, EBAY, F, GM, GOGO, GOOGL, GRMN, INTC, JNJ, JNPR, JPM, KEY, KKD, KO, KRFT, LMT, LUV, MAT, MDC, MRK, NDAQ, PNRA, UA, VMW, WFC, XRX,

The SPY Market Forecast is at 72.

___________________

58 out of 100 NDX stocks closed higher on Friday.

Leading NDX 100 stocks included: CELG, REGN, ALXN, VRTX, VIP, GILD, TSLA, AMZN, AAPL, AMGN

Lagging NDX stocks included: MNST, CTSH, ADI, NTAP, NFLX, WFM, MSFT, SBAC, CHRW, CHKP

Leading stocks > +2% on Friday: AMBA, GPRO, SFUN, SSYS, YNDX, FEYE, SUNE, SPLK, BBRY

Lagging stocks < -2.0% included: RWLK

Stocks to Watch on Monday

Holding Above 30 DMA = 73

ROST, DLTR, ORLY, TSCO, AAL, BBBY, PCAR, SPLS, INTU, EA, AMAT, WFM, AVGO, WDC, ADI, ALTR, EBAY, LLTC, FOXA, SIAL, BIIB, ADBE, ADP, CHKP, CHTR, CMCSA, CSCO, DISCA, EQIX, FAST, FB, HSIC, INTC, KLAC, KRFT, LBTYA, LVNTA, MNST, NXPI, QCOM, STX, TRIP, TXN, VIAB, VRSK, AKAM, BRCM, CA, CERN, CHRW, COST, CTSH, DISH, FISV, ISRG, LRCX, MAR, MU, MYL, NTAP, SRCL, SYMC, ADSK, CTRX, NVDA, SNDK, DTV, ESRX, EXPD, MSFT, PCLN, SBUX, CTXS

Moving Above 30 DMA = 8

AAPL, CELG, GOOG, ILMN, PAYX, REGN, VRTX, YHOO

Moving Below 30 DMA = 0

                     

Staying Below 30 DMA

AMGN, VOD, GILD, MAT, XLNX, MDLZ, ALXN, ATVI, SBAC, AMZN, LMCA, SIRI, GRMN, BIDU, TSLA, VIP, GMCR, WYNN, NFLX

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up