EURO, TNX, XLF, SPY Move Lower as VIX Rises...

The SPY fell again on a weaker Euro, falling interest rates and financial stocks and rising bonds.

Three of nine sectors moved higher on Wednesday. XLP, XLV, and XLU were the strongest sectors.

Breadth weakened as decliners led advancers 2.05 to 1 on the NYSE and 1.97 to 1 on the NASDAQ.

Exchange        NYSE       NASDAQ

Advancers       985           839

Decliners        2,024          1,660

SPY moved down 51 cents on 207 million shares…

AAPL was down -7.09 to 546.07 on 20 million shares...

HLF +7.07, +16.66% following Einhorn rumors...

SPLS -0.84, -5.69% following earnings Wednesday morning

DLTR, ROST and SHLD report earnings this week.

Technical Commentary:

The Euro fell to a low of 126.87 before closing at 1.2714. TNX closed 0.12 lower, at its lowest level since October 4, 2011. JPM fell another -78 cents. The VIX rose 0.30 to 22.27 its highest close since Jan 3.

The Euro rallied in evening trade. If the Euro support holds and rises, it likely would lead to a bounce in interest rates, financial stocks and in the SPY. The Market Forecast indicator did form a bullish cluster on Tuesday and Wednesday.

XLF closed down 21 cents.

Breakout – GOOG

Breakout Setup – EXPE, AMZN, CATM, AMGN

Pullback - UAL, GILD, EBAY, CRUS

Flag Bounce – LNKD, SWI, ROST

Flag Setup – ADM, CHL, FIRE, BGC, LULU, GRMN, URE, DLR, TSL, VRSN, DLTR, WCRX, CTXS, SHLD, BA, CERN, DDD, GWR

Confirmed MACD Divergence – FLEX, FAST

Potential MACD Divergence - SWK, BAC, AKAM, BRCM

Bear Gap - SPLS

32 of 100 NDX stocks closed higher on Tuesday…

Leading NDX 100 stocks included EXPE, GOOG, MU, GMCR, ROST, SRCL, VMED, MRVL, GOLD, FAST

Lagging NDX stocks included FSLR, SPLS, KLAC, LRCX, FFIV, SNDK, NFLX, SHLD, QCOM, STX

Leading stocks > +2% on Wednesday included HLF, SINA, GRPN, FAZ, LNKD ESI

Losing stocks < -2.0% included ANF, MCP, PCX, CIEN, VECO, X, AKS, ANR, INFA, TPX, FAS, ATI, WDC, RVBD, DE, CD, CSTR, TSL, BAC, URE, JDSU, CRUS, CHL, JNPR, DECK, VMW, RCL

Stocks to Watch on Thursday

Holding Above 30 DMA = 8

TLT, LNKD, CRUS, SWI, VECO, FAZ, UAL, GRPN

Moving Above 30 DMA = 0

Moving Below 30 DMA = 3

CHL, LDK, URE

Staying Below 30 DMA

CREE, TSL, STI, WDC, DLR, NTES, NKE, ATI, ANF, AGI, ZAGG, CRM, FCX, IBM, SLB, CMG, DHR, ESI, FAS, FCX, SMH, SWKS, TIF, UCO, V, AKS, ANR, JNPR, X, HLF, SOHO, DECK, HUM, CROX, LVS, FAZ, CIEN, PCX, RCL, RVBD, CLF, MCP, SWK, TPX, X, ZION, INFA, BAC, A, TBT, F, JDSU, C, GS, TSLA, COH, GRPN, MOS, ICE, SINA, GES, CDE

Ten Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down