All nine of the nine sectors moved lower on Wednesday…however XLU, XLK and XLE
were the strongest sectors…XLB was
the weakest sector.
Breadth weakened… decliners led advancers…4.41
to 1 on the NYSE and 3.04 to 1 on the NASDAQ…
Wednesday
– weakened, decliners led
Tuesday – weakened, decliners
led
Monday – strengthened,
mixed
Friday – weakened,
decliners led
Thursday – strengthened,
advancers led
LMCA
replaced VMED in the NDX 100 on Wednesday morning June 5.
NFLX will replace PRGO in the NDX 100
Thursday morning June 6.
SPY
down 2.29 at 161.27…volume 211.4 million shares
VIX
up 1.23 at 17.50…
TNX
down .37 at 21.00…
TLT
up 1.57 at 115.29...
XLF
down 32 cents at 19.36…volume 88 million shares
AAPL
down 4.20 at 445.11…volume 10.3 million shares
FB
down 62 cents at 22.90…volume 53.7 million shares
Technical Commentary:
DIA -1.54%, SPY -1.40%, QQQ -1.30% and IWM
-1.28%.
The SPY opened lower and traded above Monday’s support low for the first hour when selling pressure sent prices
lower falling below its 38.2% Fib retracement level. The SPY fell to and closed at 161.27,
four cents below its 50% Fib level.
As expected when a support level
breaks the next support level is the most probable price level. Random?
Maybe but that’s twice this week alone.
We looked for a support bounce or break on Wednesday and the SPY
produced the break with a nice one day payoff. We will continue to look for a potential bounce move on Thursday.
TSLA today formed a bounce entry,
confirmation of Wednesday’s bullish harami and a hammer in its bull flag
pattern.
JNPR +6.61% formed a
large bullish engulfing in its
bull flag pattern that was also a horizontal breakout entry on the same day.
XLF, XLI and XLK
turned neutral. Six sectors closed
just below their 30 DMA today. Five
sectors are neutral and four negative. The
current sector structure is neutral and the shortest (four-week) intermediate
term trend on the SPY turned neutral.
When the market
is trending up Chart Signals looks
for support bounce and resistance breakout entries. When the market is trending down Chart signals looks for resistance pull
back and support break entries.
When the market is sideways in consolidation Chart Signals will look for support bounce,
diagonal breakouts and pull backs at resistance where price action
stays between support and resistance.
The current market condition is sideways with a potential support bounce
forming.
Trade what you see on the chart of your position. The intermediate term trend is up with short-term trend down. Traders should lock in profits when targets
are reached. Look
for potential entries on a bounce or break of support according
to your rules.
Chart Signals Strategy Guidelines
Technical setups for
short-term option trades be in and out by earnings release.
Over earnings release use earnings option strategies such as straddles, strangles, OTM calls
or puts.
After earnings look for
bullish setups in positive reaction stocks and bearish setups in negative
reaction stocks.
Earnings this Week: CIEN before the open Thursday.
EPS Reaction Summary
EPS Gainers – GES, SPLK, PWRD, HPQ, NTAP, AZO,
MDT, CSCO, A, MCP, WCRX, NVDA, PCLN, GMCR, GRPN,
TSLA, EA, DVA, WFM, CTSH, DTV, LBTYA, AIG, ADP, CBOE, REGN, FB,
BZH, EXPD, GM, MDC, STX, V, YELP, ICE, JRCC, VIAB, CMCSA, DDD,
AVP, HLF, CERN, CVX, DHI, TWC, ANGI, AKAM, ALXN, ALTR, BIIB, COG,
CLF, CROX, DOW, ESI, FFIV, HOG, LRCX, LVS, MO, PHM, RCL, SIAL, XLNX, BA,
BRCM, GLW, HES, DAL, COH, DD, NFLX, ILMN, VECO, LCC, RF, ZION, TRV, LMT,
CAT, CHKP, HAL, HAS, CMG, GOOG, KMB, STI, MSFT, BTU, PEP, UNP, VZ, MAT,
AXP, JNJ, INTC, KO, C, APOL
EPS Losers – CPRT, COST,
TSL, CRM, GME, SHLD, DISH, XRAY, ATVI, RAX, MNST, Z,
LNKD, TPX, ZAGG, CTRX, GRMN, MRK, SWI, AMZN, BIDU,
CRUS, DECK, EXPE, HSY, KLAC, MXIM, QCOM, PTEN, ABC, MMM, AMGN, T,
JNPR, PNRA, VMW, GE, IBM, ISRG, MCD, MS, PM, UNH, SNDK, EBAY, BAC, USB,
GS, LLTC
The Market Forecast Green Line is
below the Upper Zone and is pointed down. Defensive
posture.
____________________
Setups
H Breakout: MNST
Diagonal Breakout: NTAP,
SPY, QQQ, IWM, QCOM, ROST, SIRI,
ATI, CNX, FSLR, SPLK, ZION
Bull Flag: GOOG, TSLA,
SCTY, RVBD, SOHU, MYL, AMAT, DTV,
ESRX, INTC, MAT, MSFT, SBUX, SNDK, STX, WDC, WFM, WYNN, XLNX, BAC,
C, CIEN, CREE, GS, DDD, F, GRPN, GS, NTES, SCSS, STI, TBT, VECO, XONE
Potential Bullish Divergence:
Gap Up: MFRM
Gap Down:
Bear Flag:
At Support: AAPL, ADSK, ATVI, CMCSA, COST, CTSH, NUAN, SHLD,
BBRY, CNX, DDD, P, SWI, UNG,
Moves
New Highs: MU,
Gap Up:
Gap Down: FAST,
H&D Breakout: JNPR
Breakout Test:
Bounce: BBBY, JNPR, ESI,
RVBD, TLT
MACD Divergence Bounce:
Bear Flag:
Support Break: CELG,
EBAY, FAST, FB, GILD, GRMN, NVDA, ALK, ANR, FAS, GLW,
______________________
12 of 100 NDX stocks closed higher
on Wednesday…
Leading NDX 100 stocks included: MU, BBBY, EQIX, CTXS, AMZN,
ISRG, CHKP
Lagging NDX stocks included:
FAST, CELG, GILD, DISCA, SIRI, SPLS, NWSA, AMGN, FB, LBTYA, LMCA, INTC,
FOSL, BIIB, AMAT, NUAN
Leading stocks > +2% on Wednesday included: ESI, JNPR, FAZ, YELP, RVBD
Lagging stocks < -2.0% included: TSL, LDK, CLF, FAS, HLF, GLW, CROX, CREE,
MCP, F, MOS, UAL, GRPN, TBT, RCL, CSTR, VMW, DECK, C, AKS, ZION, GS, URE
Stocks to Watch on Thursday
Holding Above 30 DMA= 35
MSFT, LIFE, INTC, WFM, WDC, AMAT,
LMCA, SIAL, STX, CA, ESRX, PCAR, XLNX, CERN, AAPL, KLAC, LINTA, CHKP, ORCL,
ADI, PCLN, MU, NTAP, SPLS, ALTR, BIDU, HSIC, SNDK, AVGO, CSCO, ISRG, AMZN,
GOLD, DELL, MNST
Moving Above 30 DMA = 0
Moving Below 30 DMA = 17
ADBE, COST, CTSH, DTV, EXPD, FAST, FOSL, KRFT, LLTC, MCHP,
NVDA, NWSA, ORLY, SBUX, SIRI, TXN, YHOO
Staying Below 30 DMA
ADP, AKAM, BIIB, BMC, DISCA, DLTR,
FFIV, GOOG, MYL, PAYX, SRCL, VRTX, WYNN, XRAY, BRCM, CELG, GILD, ALXN, ATVI,
BBBY, CTXS, EBAY, GRMN, REGN, VIAB, LBTYA, ROST, FISV, MAT, MDLZ, PRGO, CHRW,
CMCSA, SBAC, SHLD, QCOM, EQIX, VOD, VRSK, ADSK, AMGN, EXPE, SYMC, FB, MXIM
CTRX, NUAN, INTU
Five Month Intermediate Term Market Trend: Up
Short Term Market Trend:
Down
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