VIX Hits 25...SPX Near Support? Oil Falls Again...

All nine sectors moved lower on Thursday…XLU, XLP and XLV were the strongest sectors for the third straight day while XLK was the weakest sector. 

                         

Breadth weakened as decliners led advancers 6.36 to 1 on the NYSE and 6.38 to 1 on the NASDAQ.

Thursday- weakened, decliners led

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

Monday – weakened, decliners led

Friday – New Year Holiday

SPY down 4.77 at 194.05 on 213.4 million shares, 77% above average volume

VIX up 4.40 at 24.99…

TNX down .24 at 21.53…

TLT up .22 at 122.81…on 10.2 million shares, 31% above average volume

XLF down .65 at 22.45…on 74.7 million shares, 72% above average volume

AAPL down 4.25 at 96.45 on 81.1 million shares, 89% above average volume

FB down 5.05 at 97.92 on 45.1 million shares, 116% above average volume

Technical Commentary:

DIA -2.36%, SPY -2.40%, IWM -2.67%, QQQ -3.13%.

Continuing concerns over Chinese economic growth, geopolitical concerns in North Korea and Oil falling to new lows sent ES futures lower again Wednesday and led to heavy selloff on Thursday in all four broad indexes.

The VIX hit 25.  Over the past 5 years a 25 VIX has led to an immediate rally in the SPX all but two times.  Today’s VIX is an indication that this pullback may be near its end.

                         (click image to enlarge)

Just four NDX stocks closed up for the day: WBA, TMUS, MAT, CERN

SIG 4.69% reports 5% holiday growth, 4.9% same store sales growth.

TWX +4.53% on 22% profit increase and raised guidance.

WMT +2.33% was the only DJIA stock to rise on Thursday.

Many retailers reported better than expected sales growth for the holiday season on Thursday and accumulation of many of this stocks led to rising prices in SIG, TWX, M, LB, WBA, HBI, KSS, URBN, AAP, BBY, AZO, MAT and SNI.

YTD:

SPX Leaders:  TWX, GPS, SIG, FLIR, KSS, WMT, M, STZ

SPX Losers: WMB, APA, AN, APC, FCX, THC, CF, AA, ESV, MRO, URI,MUR, CMG, WYNN

NDX Leaders:  TMUS, DLTR, NFLX

NDX Losers: JD, ILMN, SWKS, NTAP, INCY, AVGO, TSLA, AMZN

DJI Leaders:  WMT,

DJI Losers: JPM, GS, AAPL, AXP, BA, CVX, INTC, GE

Remember:  “It’s a market of stocks, not just a stock market.”

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 down at 20.  

Short-term Chart Targets:

SPY =...197.44…

QQQ = 107.29…

IWM = 107.50…

                   

Support Levels

SPY = 193.88, 191.08…

QQQ = 104.81, 102.08…

IWM = 104.25

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Setups

Horizontal Breakout: NFLX, DPS, KMB, BXLT, PLAY, DLTR,

Diagonal Breakout: DRI, KR, RCL, SUNE, WUBA, YNDX,

Bull Flag: CCL, CNC, DRI, FIVE, FSLR, MCD, SCTY, SOHU, SONC, TERP, RUN, SEDG, W,

Potential Bullish Divergence: AAPL, ADSK, COST, MNST, ORLY, CRM, CRUS, QRVO, TPX, YELP, ZION, LNKD

At Support: AIG CAH, CSIQ, SLCA, SONC, MYL

Moves

H Breakout: DLTR

D Breakout: SINA

Gap Down: MPEL, SPWR, FINL

Support Break: JASO, TPX, YELP, FAS, KWEB, NKE, SKX, STI, V, SBUX,

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4 of 100 NDX stocks closed higher on Wednesday.

 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Friday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 10

ALXN, BIIB, BMRN, CELG, ESRX, KHC, MYL, ROST, SBAC, SNDK

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Down