SPY Pulls Back on Light Selling and Profit-taking Pressure...Holds Above S1...

Our neighbor Stephen R. Covey passed away today at age 79.  Our prayers go out to his family.

Seven of nine sectors moved lower on Monday.  XLE, XLV, and XLU were the strongest sectors.

C +0.16, +0.60% rose on 59.4 million shares following EPS on Monday morning before the open.

Breadth weakened as decliners led advancers 1.22 to 1 on the NYSE and 1.82 to 1 on the NASDAQ.

Exchange      NYSE    NASDAQ

Advancers     1,353          879

Decliners       1,659       1,603

SPY moved down 32 to 135.43 on 97.4 million shares, closing above its 30 DMA for the fourteenth consecutive day.  The SPX moved up -3.14 at 1,353.64. 

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

AAPL up +1.94 at 606.91 on 10.8 million shares...

FB down -$2.47 at 28.24 on volume of 24.6 million shares...

GRPN -0.12, -1.54%…

Chart Patterns

Daily Bull Flags Setups: EXPE, AVGO, GE, LLTC, DKS, VECO, AMZN, SHW, INTU, HSY, ADP, ZAGG, MOS, PCLN, ALXN, X, MU, MLNX, POT, DE, AKS,

Flag Bounce:  MOS, SHLD,

Flag Bounce Continuation: FAS, C, FMC, WFC, UCO, VMED, AKAM, HIBB, COF, COP, CL, SPY, DIS, DIA, VRSN, QQQ, TFM, IWM, GOOG,  AAPL, COST, FISV,

Breakout: TSLA, URE, V, ESRX, ROST

Breakout Pullback: MCD

Breakout Continuation: KMB, SAVE

Breakout Setup: SPG, MNST, LNG, VMI, LEN, NFLX, GOLD,

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

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

Earnings Week July 16 - 20

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

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

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:

Selling volume and profit taking were light on Monday following Friday’s large support bounce and numerous bull flag entries.  Trading stayed above the S1 level of Friday’s large white candle.  Look for price to move to its previous high and then potentially break out to a higher high this week.

AAPL +0.32% confirmed its bull flag bounce as did ROST +0. 444%.

Monday Highlights:

SPY closes down 32 cents

The Euro moved up 23pips, closed at 1.2271

TNX -0.35 at 14.64 a new closing low

VIX gained +0.37 at 17.11

XLF down 2 cents at 14.68

30 of 100 NDX stocks closed higher on mONday…

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

Leading NDX 100 stocks included FSLR, SHLD, TEVA, CTSH, GILD, CELG, SIRI, SPLS, STX, VOD

Lagging NDX stocks included GMCR, RIMM, EBAY, CERN, FOSL, CTRP, CHRW, NFLX, INFY, BIDU

Leading stocks > +2% on Monday included TSLA, UCO, V

Losing stocks < -2.0% included ANR, FB, VECO, SOHU, CIEN, SWKS, SINA, ANF, CRUS, ICE, AKS, X, CSTR, LNKD

Stocks to Watch on Tuesday

Holding Above 30 DMA = 24

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

Moving Above 30 DMA = 0

Moving Below 30 DMA = 3

FB, FCX, VECO

Staying Below 30 DMA

AKS, CSTR, 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