Buyers Bounce SPX Following Balance at Support on Thursday...

Six of nine sectors moved higher on Friday…XLB, XLK and XLY were the strongest sectors while XLU was the weakest sector.  Oil futures rose .05 to close at 44.56.

For the week ended May 6, XLP +1.80%, XLU +0.85%, XLK +0.28%, XLY +0.10%,

led SPY -0.30% 

Lagging sectors XLF -0.77%, XLV -0.88%, XLI -0.93%%, XLB -2.00%, XLE -3.30%,

YTD 87

Leading Sectors: XLU +12.82%, XLE +8.21%, XLB +6.31%, XLP +5.45%, XLI +4.96%, XLY +1.43%,

SPY +0.91%,

Lagging Sectors: XLK -1.35%, XLF -2.94%, XLV –3.96,

Breadth strengthened as advancers led 1,951 to 1,071 on the NYSE and 1,403 to 1,164 on the NASDAQ.

Friday – strengthened, advancers led

Thursday - strengthened, decliners led

Wednesday – strengthened, decliners led

Tuesday – weakened, decliners led

Monday – strengthened, advancers led

SPY up .75 at 205.72 on 89.3 million shares, 9% above average volume

VIX down 1.19 at 14.72

TLT down .57 at 130.45…on 7.2 million shares, 5% above average volume

Technical Commentary:

IWM +0.59%, QQQ +0.53%, DIA +0.51%, SPY +0.37%,

IWM, QQQ, DIA and SPY rose on Friday after falling for three straight days.  For the second straight week SPY, DIA, QQQ and IWM closed lower.  Selling momentum slowed significantly in SPY, DIA and QQQ and increased in IWM.

Earnings continued to be a significant catalyst in individual stocks this week.

Earnings winners:  YELP, HLF, EVHC, ATVI, SPXC, KHC, TDC, PKI, FISV, ILMN, CTSH, DISCA, FMC, OKE, JEC, EXR, FIS, ICE, SYY, VMC, HCN, SNI, MAC, MLM, GGP, CHD, CVS, CLX, AL, AMH, ETP

Earnings losers:  ENDP, TSLA, PCLN, CHK, MUR, MRO, PBI, APC, ABC, MNK, DVN, HP, CTL, MOS, HRS, CF, MSI, VLO, CI, FLR, FTR, WU, EOG, MET, HAL, ADM, DLPH, MYL, CERN, TRIP

SPY, DIA and IWM are above short-term support.  QQQ which broke short-term support last month closed above April’s lows on Friday.

Watch for a potential bull flag bounce next week in SPY, DIA, IWM and many individual stocks next week.

It is important to continue defensive until a price bounce occurs.

Watch for potential bearish trades on the ETFs below last week’s low:

SPY support low = 205.03

DIA support low = 176.29

QQQ support low = 104.88

IWM support low = 110.10

Technical analysis based trades should be closed before earnings.

Trade what you see, not…

Stocks below support should generally be traded bearishly until a reversal pattern forms.

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include:  SPY, DIA, FAS, XLY, XLB, XLE, XLF, XLV, CSX, ESRX,

NXPI, VIAB, DFS, AXP, PXD, BSX, NOV, FCX, ISRG, SKX, COH, ULTA, SWN, HOG, X, TSCO, AFL, AMZN, BG, EGN, CL, FTNT, HAL, IR, MJN, SCI

Bull Flag Bounces include:  SVXY, FB, CTXS, PNR, NEM, MMM, EQT, HAS, AEM, BMY,

Horizontal Breakout Setups include: FB, JNJ, NWL, OLN, ETP, MDLZ, TPX, CHTR, STLD, TSN, GLPI, PPC

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Short-term Movers:

SPX gainers:  TDC, FMC, OKE, JEC, EXR, FIS, PKI, PSA, ICE, O, SYY AIV, VTR, VMC, AVB, HCN, UDR, SNI, MAC, ESS, KIM, MLM, GGP, SPG, EQR, CHD, CVS, CLX, IRM, 4

SPX losers:  CHK, FCX, MUR, MRO, PBI, SWN, UA, APC, LB, COP, AA, ABC, MNK, DVN, GME, HP, MPC, URI, CTL, FSLR, NOV, MOS, AGN, HRS, KSS, GPS, SLB, LUV, CF, MSI, FTI, JWN, VLO, HES, URBN, CAT, ZION, CI, BWA, HPQ, HPE, FLR, FLS, FTR, BHI, KMI, WU, RRC, M, KMX, AAL, CMA, EOG, HAR, HBI, LNC, MET, AN, FITB, HAL, PRGO PVH, PSX, ADM, IVZ, DLPH, GCI, GRMN, MON, COF, STT, C, NAVI, PXD, 4

NDX gainers:  ATVI, KHC, LMCA FISV, ILMN, CTSH, DISCA, EA, 3

NDX losers:  ENDP, STX, TSLA, BIDU, WDC, MU, PCLN, PCAR, DISH, MYL, AAL, BMRN, CERN, BBBY, BIIB, CSX, GILD, TRIP, LVNTA, CSCO, SWKS, AMGN, CELG, 3

YTD:

SPX Leaders:  NEM, FCX, RRC, SWN, OKE, IRM, MUR, COG, EW, EQT 

SPX Losers:  HRB, PRGO, AGN, MPC, LB, ADS, ABC, RCL, TSO, MNK

NDX Leaders:  PCAR, CHTR, KHC, FB, FAST, ISRG, MAT, ULTA, FISV, YHOO (40, -4)

NDX Losers:  ENDP, LMCA, STX, WDC, INCY, VRTX, REGN, MU, TRIP, ILMN

DJI Leaders:  XOM, CVX, UNH, MMM, WMT, VZ, MCD, JNJ, CAT, IBM (18, +1)

DJI Losers:  INTC, AAPL, GS, MSFT, BA, AXP, JPM, NKE, DD, 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 SPY MFC green line is flattened at 46, continue to be defensive.

70 of 100 NDX stocks closed higher on Friday.

27 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 8

CMCSA, CSX, CTSH, DISCA, DLTR, FISV, PYPL, SIRI

Moving Below 30 DMA = 3

FOXA, LVNTA, PCAR

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Neutral