SPY, DIA, FAS, Mega Support Bounce Following JPM, WFC Earnings...Patience and Focus Rewarded...

All nine sectors moved higher on Friday.  XLF, XLI, and XLB were the strongest sectors.

JPM +2.03, +5.96% on 83 million shares and WFC +1.06, +3.23% on 39.6 million shares following EPS on Friday morning before the open.

Breadth strengthened as advancers led decliners 5.09 to 1 on the NYSE and 2.71 to 1 on the NASDAQ.

Exchange      NYSE    NASDAQ

Advancers     2,552       1,819

Decliners          501          671

SPY moved up $2.24 to 135.75 on 129.6 million shares, closing above its 30 DMA for the thirteenth consecutive day.  The SPX moved up +22.02 at 1,356.78. 

The Market Forecast green line turned and is pointed up today.

AAPL up +6.07 at 604.97 on 11.1 million shares and confirmed its hammer...

FB down 9 cents at 30.72 on volume of 8.1 million shares...

GRPN -0.19, -2.38%...

Chart Patterns

Daily Bull Flags Setups: ZAGG, MOS, PCLN, ALGN, ALXN, X, SHLD, MU, MLNX, POT, DE, AKS,

Flag Bounce:  FAS, C, FMC, EXPE, WFC, UCO, VMED, AKAM, HIBB, COF, COP, CL, AVGO, GE, SPY, DIS, DIA, VRSN, LLTC, QQQ, DKS, VECO, AMZN, TFM, IWM, SHW, GOOG,  SPG, INTU,AAPL, HSY, COST, ADP, FISV,

Flag Bounce Pullback:

Breakout: ESRX, MNST, ROST

Breakout Continuation: MCD, KMB,

Breakout Setup: TSLA, URE, LNG, VMI, LEN, NFLX, GOLD,

Support Bounce: VMW, EBAY, CMG, MSFT, DHR, ODFL, SBUX, ULTA, MTW, ADSK, CROX, SWI, CRM, INFA, V, SWKS,

At Support: CRUS, NVDA, CIEN, GLW, KLAC, MCP, CTXS, F, MCHP, AMAT, MRVL, GMCR, CSTR, APOL, SAVE, PIR, A,

Earnings Week July 16 - 20

Monday: C, UAL

Tuesday: KO, CSX, GS, MAT, MOS, STT, WYNN, YHOO

Wednesday: AXP, BAC, EBAY, FFIV, IBM, MLNX, QCOM, SWKS, SWK, USB, XLNX,

Thursday:  AMD, ALGN, COF, CMG, DHR, FCX, GOOG, ISRG, KEY, MSFT, MS, NUE, PM, SNDK, LUV, STLD, UNP, UNH

Friday: GE, SLB, STI

Technical Commentary:

The SPY, DIA, QQQ and IWM bounced creating a potential entry signal in their six day bull flag pattern.  Look for price to move to its previous high and then potentially break out to a higher high.   Financial stocks rocked to the upside after positive earnings reactions to JPM and WFC on Friday.  FAS + 6.90%, C +5.42%, BAC +4.55%, STI +4.25%, MS +3.69%, GS +3.63%, KEY, +3.55%, RF +3.55% and STT +3.06% outperformed the SPY.

AAPL +1.01% confirmed its hammer.  ROST +0.84% followed through on its horizontal bull flag entry.

Patience and focus were rewarded for traders that stayed with the trend and traded the  bounce entry on Friday with a mega support bounce in the SPY, other index ETFs and many individual stocks.   

Friday Highlights:

SPY closes up $2.24

The Euro moved up 49 pips, closed at 1.2248

TNX +0.20

VIX lost -1.59 at 16.74

XLF up 39 cents at 14.70

90 of 100 NDX stocks closed higher on Friday…

Leading NDX 100 stocks included CHKP, INFY, CLEG, EXPE, CTSH, PCAR, ESRX, EXPD, MNST, MSFT

Lagging NDX stocks included GMCR, RIMM, FFIV, SIRI, APOL, WYNN, SPLS, WCRX, NFLX, MU

Leading stocks > +2% on Friday included FAS, TPX, ANF, C, TSLA, BAC, STI, GES, GS, COH, UCO, CLF, TSL, FCX, ANR, TIF, RVBD, HUM, URE, CRM, DHR, NKE, CMG, ATI, ICE, VMW, RCL, ZION, SLB

Losing stocks < -2.0% included FAZ, CSTR, GRPN, ESI, AKS

Stocks to Watch on Monday

Holding Above 30 DMA = 21

ICE, DLR, HLF, URE, MOS, V, UAL, CHL, DE, FAS, STI, X, ANF, ATI, SLB, VECO, TSLA, TLT, WDC, LNKD, UCO

Moving Above 30 DMA = 5

BAC, FCX, GS, TPX, ZION

Moving Below 30 DMA = 2

AKS, CSTR

Staying Below 30 DMA

ESI, CIEN, GES, ZAGG, RCL, CREE, JDSU, LDK, MCP, SMH, CLF, CRM, CROX, CRUS, DHR, GLW, IBM, INFA, NTES, SWI, SWKS, TSL, A, C, CDE, SOHU, SWK, TBT, HUM, CMG, SINA, F, RVBD, GRPN, FAZ, NKE, LDK, VMW, TIF, ANR, JNPR, LVS, COH

Six Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up