E-mini stock futures head into week mixed

This time, instead of slowing and forming a pullback, the indices held the highs with a two-wave continuation pattern. This forms when the market falls into a trading range with two corrective waves off highs within the range. The second wave is preferably slower than the first. This triggered a third and final push higher into Friday's opening bell on the 5 minute time frame.

Interestingly, this also created a third wave higher on the intraday charts when we take out afterhours and premarket trade. This established trend exhaustion on not only the all-sessions charts that did include that data, but the intraday ones preferred by daytraders as well. This exhaustion took place into 10:00 a.m. This is typically not a corrective period for the market except when accompanied by economic data, but on Friday there were no major reports on tap.

S&P 500 (Figure 2)

The 10:00 a.m. high in the market held throughout the remainder of the session. The Nasdaq had a strong downtrend into the closing bell, while the S&P 500 and Dow dealt with a higher degree of choppy trade. Initial support hit at 11:45 a.m. ET. A double bottom on the 5 minute charts offered some mid-day daytrade action. The next opportunity, however, didn't take place on the 5-15 minute charts until the final 45 minutes of the day when the afternoon trading range broke to the downside. This drop took the tech-heavy Nasdaq-100 back to Thursday's lows at the closing bell.

Nasdaq Composite (Figure 3)

The Dow Jones Industrial Average ($DJI) had a gain of 49.04 points, or 0.41%, and closed at 11,871.84 on Friday. Over half of the Dow's thirty index components posted a gain. Following GE, other top performers were American Express (AXP) (+1.61%), Exxon Mobil (XOM) (+1.58%), and Disney (DIS) (+1.46%). The weakest performer was Bank of America (BAC) (-1.99%) following disappointing earnings after it was hit by writedowns on home loans and lower-than-expected trading revenue. Other top percentage decliners were Alcoa (AA) (-1.19%), Microsoft (MSFT) (-1.16%), and Caterpillar (CAT) (-1.16%). The Dow ended the week higher by 0.72%.

The S&P 500 ($SPX) rose 3.09 points or 0.24%, and closed at 1,283.35. The top percentage gainer in the S&P 500 was Intuitive Surgical (ISRG) (+12.68%). General Electric (GE) (+7.11%), Dean Foods (DF) (+6.09%), and Suntrust Banks (STI) (+5.85%) also posted gains over 5%. Advanced Micro Devices (AMD) (-5.99%) was the weakest percentage performer in the S&P. Other top losers were Electronic Arts (ERTS) (-4.00%), Jabil Circuit (JBL) (-3.92%), and Peoples United Financial (PBCT) (-3.58%). The S&P 500 ended the week lower by 0.76%.

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