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Stocks take a rest -- will they wake up rejuvenated?

As I often do, I am taking the opportunity to provide an overview of this weekend's stock market BUY and SELL signals available at Alert HQ. This weekend we have the following stock picks and signals:
  • Reversal Alerts based on daily data, we have 34 Alert HQ BUY signals and 11 SELL signals
  • Reversal Alerts based on weekly data, we have 11 Alert HQ BUY signal and 12 SELL signals
  • We have 103 Bollinger Band Breakouts based on daily data and 73 are bullish. We also have 101 Breakouts based on weekly data of which 69 of them are bullish.
  • We have 700 Cash Flow Kings
  • 7 Swing Signals --  4 are BUY signals and 3 are SELL signals
  • 399 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 82 stocks that are new additions to the list and 81 that fell off the previous list from Thursday.
  • 35 Trend Busters based on daily data of which all but 4 are BUY signals. We also have 46 Trend Busters based on weekly data  of which 25 are BUY signals.
  • 191 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. We see 94 downside gaps and 97 upside gaps based on daily data. We also have 39 Gap Signals based on weekly data of which 11 are bearish.
The numbers of bullish signals suggest the broader market still has some strength despite the S&P 500 being stuck at it's 200-day moving average.
    The view from Alert HQ --

    The data for the following charts is generated from our weekly Alert HQ process. We scan roughly 6040 stocks and ETFs each weekend and gather the statistics presented below.

    In this first chart below we count the number of stocks above various moving averages and count the number of moving average crossovers, as well. We then plot the results against a chart of the SPDR S&P 500 ETF (SPY).


    Though SPY stalled and fell back slightly below it's 200-DMA, the the market essentially ended flat on the week. That is seen on the chart above as the number of stocks above their 50-DMA (the yellow line) barely budged. There was, however, an increase in the number of stocks whose 20-DMA had made a bullish cross above their 50-DMA. This chart has the look of a market in consolidation.

    The next chart provides our trending analysis. It looks at the number of stocks in strong up-trends or down-trends based on Aroon analysis.


    This chart has a much more bullish tone. The number of stocks in strong up-trends has increased sharply over the last week. The number of stocks in down-trends has continued to dwindle. It's good to see that neither is at an extreme yet.

    The outlook --

    Though the S&P 500, the Russell 3000 and the Nasdaq Composite have failed to hold their 200-DMA, the Dow Jones Industrials, the NASDAQ 100 and the Russell 2000 have managed to hold onto that important level. The picture, therefore, is mixed. Our signals and indicators suggest the recent bullish trend has not yet exhausted itself though it may be taking a rest.

    With roughly one half to two-thirds of companies having reported second quarter earnings results, we can expect further turbulence from earnings season. The big market moving report coming this week, however, is the Non-Farm Payrolls report. With the last couple of weekly claims reports coming in slightly better than expected, investors will be holding their breath waiting for the big NFP numbers to confirm some improvement in the jobs market.

    While waiting for the Non-Farm Payrolls report which hits on Friday, we get to see construction spending, personal income and personal spending (consumer discretionary stocks and ETFs will certainly react to these numbers), factory orders, pending home sales, auto and truck sales and important ISM services index. And don't forget that on Wednesday, we get a preview of the employment numbers when the ADP employment Change report is released. In other words, there will be plenty of data to keep investors on edge.

    Earnings, data and stocks at a strong resistance level. This week could set the tone for the next couple of months to come.

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