Chip Stocks Lower after Semiconductor Trade Restrictions...April Retails Sales Lower than Expected...NDX Bull Flag Bounce...

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Markets opened lower Friday after the Commerce Dept. after restrictions were imposed for Huawei doing business with US companies after Aug. 15 and April Retails Sales reported a bigger drop than expected.  After the lower open the SPX and NDX did rally and both closed higher for the day. 

NDX +58.21, +0.64%, and SPX +11.20, +0.39%, opened lower and closed higher both trading range until breaking out to close higher in the last 30 minutes of trading on Friday.  Both NDX and SPX bounced and closed above the high of the low day.  The NDX is a bull flag entry trigger and the SPX is a channel bounce entry trigger.


Six of eleven sectors were higher on Friday, led by XLC, XLY and XLP

SPY up 1.31 at 286.28 on 111.1 million shares, average volume, up on lower volume.

VIX down .72 at 31.89

DIS, HD WMT led the DJIA, 15 advancers, -11

RCL, GPS, OKE, MCK led the SPX, 273 advancers

NVDA, VRTX ZM LULU led the NDX, 59 advancers

The two-year trend term is up.  The one-year trend is sideways.

An eight-week uptrend emerged following a higher low W pattern reversal in March. However, the trend’s upward momentum has slowed significantly over the past three weeks and with a shift to sideways in that time frame.

Up: IWM, QQQ, SPY, DIA,

Down:

Breadth strengthened moderately on Friday as advancers led 1,655 to 1,268 on the NYSE and led 2,062 to 1,212 on the NASDAQ

The SPX MFC green line is pointed down at 83.3 and is counter-trend defensive.  Price action is day four of a counter-trend pullback and bounce above the Holiday or bull flag entry trigger.

Uptrend sectors:  XLV, XLK, XLP, XLY, XLC, XLB,

Neutral sectors:  XLE, XLU, XLRE, XLI, XLF,

Down trend sectors:

The 6-month intermediate trend is down a little.  The ten-day trend is sideways.

3-month Intermediate Term Market Trend: Sideways

3-day Short Term Market Trend: Sideways

59 of 100 NDX stocks closed higher on Friday.

64 NDX stocks are above their 30 DMA:  SGEN, AMZN, CDNS, NFLX, REGN, TTWO, VRTX, INCY, AMGN, ATVI, CSCO, EA, ILMN, KHC, VRSN, AVGO, CHTR, IDXX, ISRG, KLAC, LULU, MSFT, MXIM, NVDA, ORLY, PEP, SNPS, SWKS, ADI, FB, QCOM, SBUX, AAPL, ADSK, EBAY, FAST, GOOGL, INTU, LBTYA, MCHP, MELI, MNST, PYPL, SPLK, WDAY, ADBE, ALGN, TSLA, BMRN, VRSK, FISV, NXPI, CPRT, CTXS, ZM, AMAT, JD, NTES, BIIB, TMUS, ALXN, AMD, CHKP, CSX, CTAS, EXPE, FOXA, INTC, LRCX, MU, NTAP,

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 1

BIDU,  

Moving Below 30 DMA = 8

ADI, AVGO, CSX, INTC, LRCX, MU, MXIM, NXPI,

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