Stocks Lower as Index, Stock Futures and Options Expire...NDX Says Goodbye...NDX Says Hello Effective Monday Before Open...

All nine sectors moved lower on Friday…XLV, XLY and XLB were the strongest sectors while XLF was the weakest sector. 

Breadth strengthened slightly as decliners led advancers 1.87 to 1 on the NYSE and 1.65 to 1 on the NASDAQ.

Friday – strengthened slightly, decliners led

Thursday- weakened, decliners led

Wednesday – strengthened, advancers led

Tuesday – strengthened, advancers led

Monday – strengthened, decliners led

SPY down 3.62 at 200.02 on 251.3 million shares, including ex-dividend 1.21, 114% above average volume

VIX up 1.76 at 20.70…

TNX down .39 at 21.99…

TLT up .68 at 123.33…on 10.1 million shares

XLF down .79 at 23.30…on 92.2 million shares, 108% above average volume

AAPL down 2.95 at 106.03 on 96.4 million shares, 134% above average volume

FB down 2.18 at 104.04 on 35.9 million shares, 53% above average volume

Technical Commentary:

IWM -1.53%, SPY -1.78%, QQQ -2.22%, DIA -2.34%.

Quarterly quadruple witching weighed on stock and index prices on Friday as December futures and options expired.  SPY 1.21 div and QQQ .34 div went ex-dividend on Friday which further lowered their quotes.  SPY and QQQ moved lower on heavy volume, however both stayed above Monday’s reversal low.

Breadth strengthened slightly on Friday notwithstanding lower index prices.  DRI, RHT, CCL, RCL, BXLT, CI, NUE, AMBA, GPRO and X were among Friday’s gainers.

Solar stocks were strong this week including SCTY, SEDG, FLSR, SPWR, CSIQ, RUN, JASO, TSL, SUNE and VSLR on news that Congress extended solar tax credits.

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Cybersecurity stocks CYBR, AVG and FEYE were strong on Friday.

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NDX says goodbye to CHRW, EXPD, GMCR, GRMN, SPLS, VIP and WYNN effective Monday before the open.

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NDX says hello to CTRP, ENDP, EXPE, MXIM, NCLH, TMUS and ULTA on Monday morning replace the stocks being removed from the index.

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

The SPX MFC green line is pointed up at 35. 

Short-term Chart Targets:

SPY =...202.93…

QQQ = 111.88…

IWM = 112.89…

                   

Support Levels

SPY = 198.77

QQQ = 109.05

IWM = 110.28

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Setups

Horizontal Breakout: CI, CNC, JD, W, SPWR, GPRO, CCL, KWEB, NUS

Diagonal Breakout: BABA, X, AMBA, AA, CTRP, MPEL, PANW, RCL,

Bull Flag: ATVI, COH, CSIQ, DPS, EDU, EXPE, FIVE, FSLR, MAT, MCD, MYL, TMUS, VRX, ZAYO, DAL, NTES, SONC

At Support: SPY, QQQ, AIG, MS, ETFC, SCHW, BAC, C, JPM, WFC, FAS, STI, ZION, TPX, V

Moves

New Highs: QIHU, RUN, DRI, SOHU,

H Breakout: CYBR

Support Break: HPQ

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9 of 100 NDX stocks closed higher and one was unchanged on Friday.

22 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 1

BMRN

Moving Below 30 DMA = 19

ADBE, AMGN, AMZN, CELG, CERN, CTXS, EA, ESRX, FB, GOOG, INTC, KLAC, LRCX, MDLZ, MSFT, NFLX, NXPI, PCLN, WBA

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Down