SPY at Resistance Day 5...Sellers Control the Open, Buyers Control the Close Again...

Three of nine sectors moved higher on Friday…XLU, XLB and XLP were the strongest sectors while XLF was the weakest sector.  

For the week ended June 3, XLU +2.56%, XLV +1.56%, XLP +1.06%, XLB +1.02%, XLI +0.11%,

led SPY +0.02% 

Lagging sectors XLY -0.26%, XLK -0.36%, XLE -0.88%, XLF -01.26%,

YTD 106

Leading Sectors: XLU +15.71%, XLE +10.31%, XLB +9.77%, XLP +6.08%,XLI +5.62%,

SPY +3.14%,

Lagging Sectors: XLK +2.59%, XLY +1.21%, XLV +0.36%, XLF -1.34%, 

Breadth weakened as advancers led 1,637 to 1,398 on the NYSE and decliners led 1,636 to 945 on the NASDAQ.

Friday – weakened, advancers led on NYSE, +3

Thursday – weakened slightly, advancers led, +7

Wednesday – strengthened, advancers led, +7

Tuesday – weakened, advancers led, +3

Monday – Memorial Day Holiday

SPY down .63 at 210.28 on 101.7 million shares, 26% above average volume

VIX down .16 at 13.47

TLT up 1.87 at 133.23…on 11.0 million shares, 59% above average volume

Technical Commentary:

DIA -0.12%, SPY -0.30%, QQQ -0.47%, IWM -0.60%,

Friday’s Jobs Report missed big with 38,000 new jobs vs. a forecast of 158,000.  The SPX -6.13 opened lower for the third straight day and once again sellers controlled the open while buyers controlled the close with a 14 point rally above Friday’s low.

During this four day trading week the SPX closed flat at 2,099.13 up from 2,099.06 while trading in 20 point range between 2,085 and 2,105.  Be alert for a move to the downside if the SPX moves below 2,085.  The SPX has failed to break through its 2,100 to 2,125 resistance area since February 2015.

Earning’s Announcements:

Positive Reactions:  AVGO, AMBA

Negative Reactions:

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:  AMD, AAPL, ADBE, AKAM, BIDU, GOOG, MSFT, NFLX, NTES, NVDA, NXPI, QCOM, TSCO, VOD, STI, WFC, JPM, XLF, FAS, MLM, AMAT, CSCO, CTXS, MAT, XLNX, ALB, EQIX, ULTA, OKE, EQT, MAT, AXP, XEC

ADP, ADSK, ATVI, BBBY, CERN, CTRP, FB, ORLY, TSLA,

MS, BAC, C,

Bull Flag Bounces include:  XLB, STLD,

Horizontal Breakout Setups include: GLPI, FISVE, XLB, DIA, FMC, STLD, SCHN, X, MOS, ZION, XLI, TXN, FTNT, WM, RRC, SWKS, CERN, WYNN, KHC, COST, UTX, ADSK, ADP, PCAR, CLR, EA, BSX, YELP, RSPP, WRK, CRZO, FLIR, SWKS, CTXS, XEC

Horizontal Breakout include:  NUE, JEC,AMZN, WWAV

New Highs include: DLTR, CNP, SWN, JNJ, WMB

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Short-term Movers:

SPX gainers:  KORS, SWN, NEM, NRG, HUM, DE, WMB, QRVO, AET, KSS, CNC, GPS, O, M, AGN, LB, RRC, TXT, CAT, URI, JWN, FE, UNP, 4, 23

SPX losers:  SIG, APA, ESS, GM, EQR, UDR, DO, NKE, BEN, SCHW, AIV, PRU, ETFC, UA, -4, 14

NDX gainers:  ENDP, DISH, STX, WFM, WDC, AVGO, MU, LBTYA, VRTX, MYL, SBAC, DISCA, 3, 12

NDX losers:  BIDU, JD, CTRP, ATVI, CTSH, NFLX, YHOO, -3, 7

YTD:

SPX Leaders:  SWN, NEM, OKE, RRC, FCX, NRG, WYNN, EQT, COG, SE (332, +6 > 10p 182, +11)

SPX Losers:  HRB, PRGO, MPC, CF, SIG, ABC, LB, FSLR, RCL, TSO

NDX Leaders:  NVDA, AMAT, ULTA, CHTR, DLTR, KHC, ISRG, MAT, FISV, PCAR (52, +3)

NDX Losers:  ENDP, LMCA, STX, JD, AAL, REGN, VRTX, ILMN, NCLH, INCY

DJI Leaders:  UNH, WMT, XOM, CVX, MMM, JNJ, IBM, CAT, VZ, PFE (19, -1)

DJI Losers:  NKE, GS, BA, INTC, AAPL, MSFT, DIS, AXP, GE, JPM

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 pointed up at 92, bullish.

23 of 100 NDX stocks closed higher on Friday.

74 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 10                                                                      

ADP, CERN, CTRP, CTSH, EBAY, FOXA, LVNTA, PCAR, WBA, YHOO

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Neutral