SPY Continues Support Bounce as Breadth Strengthens...

The Euro drifted lower to its 1.2440 area before rallying more than 60 pips after 5 pm.   Financial stocks and the broad indexes moved higher.  Bonds moved up slightly as TNX interest rates and VIX volatility moved slightly lower.

Eight of nine sectors moved higher on Wednesday.  XLE, XLF, and XLU were the strongest sectors.

Breadth strengthened as advancers led decliners 3.61 to 1 on the NYSE and 2.49 to 1 on the NASDAQ.

Exchange      NYSE    NASDAQ

Advancers     2,387       1,766

Decliners          660          709

SPY moved up $1.19 on 108 million shares closing above its 30 DMA.  The SPX gained +11.86 at 1,331.85. 

The Market Forecast green line is pointed down.

AAPL up +2.47 at 574.50 on 7.2 million shares...

FB down 87 cents at 32.23 on volume of 28.6 million shares...

GRPN -0.12, -1.17%…

Wednesday produced several ETFs and stocks that bounced and broke above the high of the low day for a potential bull flag entry.

Flag Bounce:  CSTR, IWM, SPY, DIA, QQQ, AVGO, JDSU 

  

Daily Bull Flags Setups: CRUS, AKAM, MLNX, NFLX, AAPL, ALGN, PCLN, EXPE, C, MCHP, GOLD. MSFT, TSLA

Bounce Continuation:  SHLD, ALXN, CTXS, CIEN, DE, ICE, SXCI, CL, COF, URE, COP, DIS, KMB, LEN, FAS, SPG, AMZN

Bounce Pause: VRSN, HSY, COST, INFA, MCD, SHW, EBAY, ULTA

Bounce Failure:  CMG, MNST, ROST, ORLY, PNRA

C Pattern Continuation: CSTR, SAVE, FAS, SRCL, SIAL, FISV, SHLD, V, CTXS, AVGO, AAPL, TSLA, MSFT, DKS, INTU   

C Pattern Pullback: ISRG,

C Pattern Reversal: SBUX,

C Pattern Entry: VMI, FMC

C Pattern Setup: SWI, CRM, HIBB, ODFL, PIR, A, DHR, SWKS

Support Bounce: ZAGG, GOOG, VECO

At Support:  QCOM, MRVL, BIDU, VMW, TPX, EXPD, F, ALTR, LVS, RVBD, MCP, TFM, CROX

Breakout Continuation: VMED, APOL, MOS, POT

Technical Commentary:

SPY rose $1.19 confirming Tuesday’s hammer on light volume of 108 million shares as buyers controlled Wednesday’s trading.   Breadth improved as the Euro again bounced off short term support.  Some retail stocks dropped, after ORLY lowered guidance, including AZO, CMG, PNRA, ROST, DLTR, DDS, M, LULU and TJX.  

Wednesday Highlights:

SPY closes up $1.19

The Euro moved down 27 pips, closed at 1.2467

TNX -0.07

VIX fell -0.27 at 19.45

XLF closed +17 cents at 14.28

77 of 100 NDX stocks closed higher on Wednesday…

Leading NDX 100stocks included DELL, NVDA, NTAP, FSLR, LIFE,MRVL, ESRX, NWSA, VRTX, SHLD

Lagging NDX stocks included ORLY, MNST, FOSL, ROST, DLTR, PNRA, SNDK, SBUX, WFM, TEVA

Leading stocks > +2% on Wednesday included PCX, AKS,ANR, CREE, X, SOHU, ZAGG, VECO, ATI, JDSU, TPX, DE, FAS, SWKS, SLB, GES, CSTR, UCO, MCP, GS, WDC, ESI, CRUS, CDE, BAC, STI

Losing stocks < -2.0% included CMG, LDK, FAZ, RVBD, FB, TIF, TSL

Stocks to Watch on Thursday

Holding Above 30 DMA = 23

TLT, CRUS, CIEN, ICE, GES, CSTR, HUM, BAC, DLR, HLF, URE, LNKD, MOS,  TSLA, V, UAL, CHL, ESI, DE, FAS, INFA, RCL, STI

Moving Above 30 DMA = 4

AKS, C, JDSU, ZAGG

Moving Below 30 DMA = 1

CMG 

Staying Below 30 DMA

TSL, MCP, SINA, SMH, SWI, SWKS, NTES, A, CDE, CLF, DHR, F, FCX, GLW, GS, IBM, RVBD, SLB, VECO, GRPN, FAZ, DECK, NKE, CRM, LDK, CREE, WDC, ANF, ATI, VMW, ESI, TIF, UCO, ANR, JNPR, X, SOHU, CROX, LVS, PCX,  SWK, TPX, ZION, TBT, COH

Five Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Up