SPX 2,046 Returns to Short-term Support, Close Down 10 Points for the Week...

All nine sectors moved lower on Friday…XLV, XLK and XLU were the strongest sectors while XLE was the weakest sector.  Oil futures fell .02 to close at 46.37.

For the week ended May 13, XLU +1.15%, XLP +0.00%, XLV -0.06%, XLK -0.09%, XLE -0.43%, XLB -0.45%

led SPY -0.47% 

Lagging sectors XLI -1.06%%, XLF -1.08%, XLY -1.48%

YTD 92

Leading Sectors: XLU +14.12%, XLE +7.74%, XLB +5.83%, XLP +5.45%, XLI +3.85%

SPY +0.44%

Lagging Sectors: XLY -0.06%, XLK -1.45%, XLF -3.99%, XLV –4.01%

Breadth weakened as decliners led 2,028 to 1,010 on the NYSE and led 1,466 to 1,086 on the NASDAQ.

Friday – weakened, decliners led

Thursday - strengthened, decliners led

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

Monday – weakened, decliners led on the NYSE

SPY down 1.80 at 204.76 on 96.4 million shares, 19% above average volume

VIX up .63 at 15.04

TLT up 1.27 at 132.28…on 8.7 million shares, 32% above average volume

Technical Commentary:

QQQ -0.37%, IWM -0.66%, SPY -0.87%, DIA -1.09%,

After a strong 30 point SPX rally on Tuesday, retailers M, KSS and JWN reported weak results and lowered sales guidance which sank retail stocks across the board sending the SPX back to short-term support.

EA, CA and NVDA did report strong results Wednesday, Thursday and Friday, that gapped each stock higher to new highs.

QQQ and IWM were relatively stronger than SPY and DIA on Friday combined with a moderate VIX were the positives on the day.  Traders are again tasked with trading either another bounce off support or being prepared for a potential break of support if that occurs, next week.

Earning’s Announcements:

Positive Reactions:  NVDA,  

Negative Reactions: JWN, 

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

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

SPY support low = 203.88, next support 203.09

DIA support low = 175.68, next support 174.55

QQQ support low = 104.40, next support 103.66

IWM support low = 109.54, next support 108.13

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:  AMZN, JNJ, MDLZ, LUK, ULTA, TSCO, AXP, SCI, FTNT, BG, STI, ZION, MRO, MUR, CHTR, FISV, MNST, FIS, HAL, JEC, NWL, NOC, MDT, LMT, GD, MCD, MMM, XOM,

Bull Flag Bounces include: 

Horizontal Breakout Setups include: FB, SVXY, TSN, BSX, AFL, CL, ADBE, AGN, CMG, FFIV, WRK, NTES, CA, INCY, AFL, CL, EGN, NEM, AEM, RRC, CTXS, MMM, CHTR, GLPI, CMCSA, WFM,

Horizontal Breakout include: ATVI, NVDA, CA, EA,

Support Breakout Setups include: IWM, DIA, XLF, FAS, DFS, MJN, SDRL, BAC, MS, SWN, NXPI, WBA, CBS, UNH, UTX,

Break of Support include: C, WFC, ADP, AVGO, ESRX, ORLY, CAT, DD, GS, WMT, 

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Short-term Movers:

SPX gainers:  MON, AGN, DNB, IFF, CMG, FFIV, WRK, 4

SPX losers:  FOSL, SPLS, GPS, JWN, KORS, M, RIG, KSS, FCX, CHK, CF, URBN,, HOT, PVH, AA, NWSA, CBS, TIF,NOV, SPG, MAC, COH, FC, FSLR, NAVI, TGT, TDC, CSRA, GGP, SU, FL, DO, CNC, TJX, RL, WMT, DIS, XRX, R, HST, SIG, WHR, SWN, CAT, MOS, AET, PRGO, UNP, IVZ, HP, FMC, NSC, EM, LB, UAL, WYN, UA, 4

NDX gainers:  EA, NVDA, NTES, CA, AMZN, TRIP, INCY, 3

NDX losers:  ENDP, JD, BIDU, BBBY, SWKS, NCLH, WDC, VRTX, ROST, AAL, DLTR, VIAB, MU, LMCA, CSX, TSLA, MAR, CTRP, NFLX, 3

YTD:

SPX Leaders:  NEM, RRC, OKE, SWN, FCX, IRM, MLM, COG, EQT, NRG, (301, -5 > 10p 141, -4)

SPX Losers:  HRB, PRGO, CF, MPC, LB, ABC, GPS, AGN, TSO, ADS

NDX Leaders:  NVDA, PCAR, CHTR, KHC, ISRG, FB, MAT, FISV, FAST, ULTA, (39, -1)

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

DJI Leaders:  XOM, CVX, MMM, JNJ, VZ, UNH, MCD, IBM, WMT, KO (16, -2)

DJI Losers:  AAPL, GS, INTC, BA, NKE, MSFT, AXP, JPM, 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 turned down at 44, time to be defensive and ready to turn bearish if price breaks below short-term support.

30 of 100 NDX stocks closed higher on Friday.

26 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 2

NVDA, TRIP

Moving Below 30 DMA = 4

ESRX, QCOM, VOD, YHOO

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Down