SPY Pulls Back as CMG, ISRG Gap Down...GOOG, SNDK Gap Up

Seven of nine sectors moved lower on Friday.  XLE, XLU, and XLP were the strongest sectors.

KYAK +7.18, +27.62% at 33.18 rose on 8.5 million shares following IPO at 26.00 on Friday.

Breadth weakened as decliners led advancers 2.01 to 1 on the NYSE and 2.80 to 1 on the NASDAQ.

Exchange      NYSE    NASDAQ

Advancers        999          649

Decliners       2,010       1,819

SPY moved down 1.26 to 136.47 on 142.9 million shares, closing above its 30 DMA for the eighteenth consecutive day.  The SPX moved up -13.85 at 1,362.66. 

The Market Forecast green line is in the upper reversal zone.

AAPL down -10.02 at 604.30 on 14.2 million shares, reports earnings AMC Tuesday...

FB down 24 cents at 28.76 on volume of 11.9 million shares, reports earnings on Thursday AMC...

GRPN unchanged at 7.40 on 6.4 million shares…

Chart Patterns

Daily Bull Flags Setups: SWKS, MOS, SPG, VMI, LLTC, INTU, HSY, ADP, MU, MLNX, POT, DE, FMC, WFC, HIBB, COP, SPY, DIS, DIA, VRSN, QQQ, TSLA, URE, V, ESRX, ROST, MCD, KMB, SAVE, MSFT

Flag Bounce Continuation: GE, ZAGG, PCLN, ALXN  

Breakout Continuation: UCO, COF, GOOG, EBAY

Breakout Setup: AVGO, ALGN, SHW, COST, AMZN, EXPE, NFLX, GOLD, VMED, CL, FISV, VMW, MTW, ADSK, CRM, CRUS, KLAC, CTXS, MCHP

At Support: FAS, C, LNG, LEN, GOLD, DKS, VECO, X, AKS, AKAM, TFM, ODFL, SBUX, SWI, INFA, GLW, MCP, GMCR, CSTR

Break of Support: MNST, SHLD, CMG, ULTA, APOL

Bear Flag: JDSU, A, MRVL, AMAT, F

Chart Patterns to Watch Following

Earnings Reaction Week July 16 - 20

Stocks Up

GOOG, MLNX, MAT, MOS, SNDK, EBAY, SWKS, IBM, QCOM, SWK, FFIV, USB, ALGN

Stable

C, KO, CSX, GS, WYNN, YHOO, XLNX, COF, DHR, FCX, KEY, MSFT, NUE, PM, UNP, UNH, GE, SLB

Stocks Moving Down

CMG, ISRG, STT, AXP, BAC, AMD, MS, LUV, STI

Earnings of Interest Week July 23 - 27

Monday: BIDU, HAL, MCD, STLD, TXN, VMW, ZION

Tuesday: AKS, ALTR, AAPL, T, BIIB, BRCM, CHRW, DD, JNPR, LLTC, LMT, NFLX, NSC, PCAR, PNRA, BTU, RVBD, SAVE, SPG, TPX, VMI, WHR

Wednesday: AEM, AKAM, BA, BMY, CAT, CTXS, CLF, COP, GLW, CROX, DAL, DLR, LLY, DAVE, F, HES, LRCX, LVS, ORLY, SWI, LCC, V, WDC, WFM, ZNGA

Thursday: MMM, ALK, AMZN, AMGN, CA, CELG, CERN, CSTR, CL, DECK, EXPE, XOM, FB, GILD, INFA, KMB, KLAC, MXIM, NTGR, POT, RCL, SBUX, UAL, UTX,

Friday:

Technical Commentary:

SPY, DIA and QQQ closed below the low of the high day (a potential short term exit signal) on Friday after reaching horizontal resistance on Thursday.  SPY, DIA and QQQ appear to be in an ascending triangle pattern in an existing up trend over the past seven weeks.  Weakness going into the close suggests potential continuation weakness on the open on Monday.

Up trend with horizontal consolidation suggests an ascending triangle formation as of Friday.

The Euro led interest rates and financial stocks lower.  The VIX appears relatively benign as does gold and neither suggests high levels of fear.

Selectivity was the theme this past week as earnings reports led to both some strong gap move up and down.  See Chart Signals list for earnings reactions above.   Look for earnings reactions to continue next week with a large number of companies releasing earnings including AAPL on Tuesday.

Friday Highlights:

SPY closes down -1.26

The Euro moved down -124 pips, closed at 1.2155

TNX -0.55 at 14.60 a new closing low

VIX gained +0.82 at 16.27

XLF down -22 cents at 14.38

8 of 100 NDX stocks closed higher on Friday…

KFT will be added to the NDX 100 Monday morning, July 23 replacing CTRP.

Leading NDX 100 stocks included SNDK, GOOG, EBAY, YHOO, AMZN, MU, NTAP, PCLN, VMED

Lagging NDX stocks included ISRG, WFM, FFIV, SHLD, FOSL, CHRW, MNST, SBUX, ADSK, PNRA

Leading stocks > +2% on Friday included FAZ, CDE, ZAGG

Losing stocks < -2.0% included CMG, X, AKS, RVBD, TSL, INFA, FAS, ATI, DECK, TPX, COH, LDK, CRUS, VMW, SINA, LVS, CIEN, STI, JDSU, CRM, C, ZION, BAC, MCP, RCL, CREE, CLF, TBT, A, UCO, NKE, UAL, LNKD, TIF, SWKS, ICE

Stocks to Watch on Monday

Holding Above 30 DMA = 23

HLF, URE, MOS, V, CHL, STI, ANF, ATI, SLB, TSLA, TLT, WDC, LNKD, UCO,  TPX, CRM, SWK, TIF, VMW, FCX, IBM, SWKS, ZAGG

Moving Above 30 DMA = 0

Moving Below 30 DMA = 16

CIEN, CMG, COH, CREE, CRUS, DECK, ESI, FAS, GES, GS, ICE, JNPR, RCL, RVBD, SMH, X, ZION

Staying Below 30 DMA

DHR, DLR, BAC, C, DE, UAL, FB, VECO, AKS, CSTR, JDSU, LDK, MCP, CLF, CROX, GLW, INFA, NTES, SWI, TSL, A, CDE, SOHU, TBT, HUM, SINA, F, GRPN, FAZ, NKE, ANR, LVS

Seven Week Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral