Small Caps Rally...SPY, DIA, QQQ, IWM Up for the Week...

Five of nine sectors moved higher on Friday… XLE, XLB and XLK were the strongest sectors and XLV was the weakest.

Breadth weakened as advancers led decliners 1.92 to 1 on the NYSE and 1.90 to 1 on the NASDAQ.

Friday – weakened, advancers led

Thursday – strengthened, advancers led

Wednesday – strengthened, advancers led

Tuesday – weakened, decliners led

Monday – weakened, decliners led

SPY up 0.01 at 199.28 on 160.4 million shares

VIX down .05 at 26.05…

TNX up .18 at 21.86…

TLT up .36 at 122.36…

XLF down .11 at 23.63…32.7 million shares

AAPL up .37 at 113.29 on 53.1 million shares

FB up 1.28 at 91.01 on 33.2 million shares

Technical Commentary:

IWM +0.99%, SPY +0.01%, QQQ -0.02%, DIA -0.07%

The SPX rallied for the third straight day on Friday following Monday’s selloff and Tuesday’s volatile trading range above support.  After the break of Monday’s high or short-term resistance on Thursday, momentum slowed dramatically on Friday which is typical after a horizontal breakout.  We look for a high probability pullback test of the breakout of Monday’s highs. 

While VIX dropped below 30 an important move for the re-establishment of market stability, it remained above 25.  If volatility stays above 25 we look for the SPX to remain volatile between support and resistance.

SPY, DIA, QQQ and IWM all closed higher than last Friday’s close while forming piercing line patterns for the week.  QQQ closed near the mid-section of the prior weekly candle while SPY and IWM made just a small pierce.

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 =...200.00

QQQ = 106.47…

IWM = 116.66, 117.50…

Support Levels

SPY = 196.03, 194.95...

QQQ = 100.49, 99.29…

IWM = 114.76, 111.79...

The SPX Market Forecast is turned up at 25.

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Setups

Horizontal Breakout: AMBA, JCP, NKE, RCL, SCTY, SINA, SWKS, TASR, UBNT, INTC, JD, LRCX, MAR, STX,

Diagonal Breakout: P, RPD, VRSN, NFLX, PCLN, SBUX, TSLA,

Bull Flag: TBT, W,

Potential Bullish Divergence: FIT 

Bear Flag: AIG, AXTA, BABA, BAC, BX, C, CCL, CYBR, ETFC, EXPE, FAS, IWM, LVS, MS, NTES, PANW, QIHU, QQQ, SCHW, SHAK, SHOP, SLCA, SPLK, SPY, STI, SUNE, SUM, TPX, YOKU, ZION, BIDU, CELG, CMCSA, EA, ESRX, GILD, MNST, MU, SNDK, WFM, YHOO

Moves

H Breakout: RUN, UA, AAPL, AVGO, BRCM

Bull Flag Bounce: GLD

Gap Down: GME, ADSK

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Watch List Stocks

Leading stocks > +2% on Friday: UAL, AMBA, JCP, VXX, SCTY, ETSY, P, QIHU

                                                       

Lagging stocks < -2.0% included: GME, FIT, NTES, SPLK

53 of 100 NDX stocks closed higher on Friday.

Leading NDX 100 stocks included: ATVI, VIAB, CERN, INTC, TSLA, AKAM, TXN, MU, BMRN, MAT

Lagging NDX stocks included: ADSK, MYL, TSCO, YHOO, CTXS, SWKS, GOOGL, JD, SNDK, AAL

NDX Stocks Above 30 DMA

EXPD, ATVI, NVDA, AMZN, AVGO, BRCM, MAT, NFLX, NTAP, SRCL, STX, VRTX, WDC, XLNX

NDX Stocks to Watch on Monday

Moving Above 30 DMA = 4

INTC, LLTC, LMCA, PCLN

Moving Below 30 DMA = 0

6-month Intermediate Term Market Trend: Down

3-day Short Term Market Trend: Up