All nine sectors moved lower on Wednesday… XLP, XLB and XLE were
the strongest sectors…XLY was the
weakest sector.
Breadth strengthened
slightly … decliners led advancers…4.26 to 1 on the
NYSE and 2.31 to
1 on the NASDAQ…
Wednesday
– strengthened, decliners led
Tuesday – weakened,
decliners led
Monday - mixed
Friday – weakened
slightly, advancers led
Thursday – strengthened,
advancers led
SPY
down 1.35…volume 177.2 million shares
VIX
up 1.52 at 18.59…
TNX
up .35 at
22.30…
TLT
down 1.63 at 112.33...
XLF
down .21 at 19.44…volume 64.2 million shares
AAPL
down 5.41 at 432.19…volume 9.4 million shares
FB
down .26 at 23.77…volume 26.4 million shares
Technical Commentary:
QQQ – 1.16%, IWM – 0.99%, DIA - 0.89%, and SPY – 0.83%.
Stock futures traded up overnight and the SPY opened higher and
then sold off all day from the open in a series of intra-day bear flags. Notwithstanding
the stellar rally on Thursday and Friday the SPY is headed for a test of
Thursday’s low at 160.25 and 1,596 on the ES futures.
Traders must be prepared for a potential
break of support and trade to the downside while at the same time aware
that a potential double bottom and MACD bullish divergence could form
and set up opportunities to the upside.
The VIX, 18.59, jumped on
the SPX weakness and made its highest close since Feb 25.
Interest rates rose and bonds TLT
-1.63 fell.
The Euro up 23 pips closed at 1.3335 above its recent
horizontal resistance breakout at 1.3243.
ULTA +14.87% gapped up following
earnings after the close on Tuesday.
FSLR -5.63 dropped on announcement of a secondary offering of
8.5 million shares at 46.
Other solar stocks CSIQ, JASO,
SPWR, YGE and TSL drifted lower.
TSLA +3.45% closed at 97.73.
FB -1.08% pulled back after gapping higher on Monday out of
a W pattern base with MACD histogram bullish divergence.
The current market condition is a pullback to support test.
Trade what you see on the chart of your position. The intermediate term trend is up and the short-term trend is neutral
with the shorter two-day trend down. Adjust stops and trade to targets according
to your rules.
Chart Signals Strategy Guidelines
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.
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.
The Market Forecast Green Line is
below the Upper Zone and is pointed down. Defensive
posture.
____________________
Setups
H Breakout: AMGN, BBBY, MNST,
NTAP, SNDK, STX, ANGI, ESI, GME, XONE,
Diagonal Breakout: CELG,
ESRX, GILD, NUAN, ORCL, ROST, ALK, ATI, BAC, F, P, RCL, SCTY, SSYS, TPX, UNG, ZION,
Bull Flag: AMZN, BIDU,
MSFT, SBUX, CREE, GS, JNPR, MFRM,
Potential Bullish Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support: ATVI,
CMCSA, COST, EBAY, FAST, MAT, QCOM, WYNN, C, CRM, FIVE, SINA, VECO,
Moves
New Highs: AMAT,
CSCC,
Gap Up: ULTA, HMA,
SE, HLF, HPQ
Gap Down: FSLR,
H&D Breakout: NTES,
Breakout Test:
Bounce: GLD,
MACD Divergence Bounce:
Bear Flag:
Support Break:
______________________
10 of 100 NDX stocks closed higher
and one was unchanged on Wednesday…
Leading NDX 100 stocks included: EXPE, MNST, SYMC, MSFT, NTAP
Lagging NDX stocks included:
BIIB, REGN, EQIX, XLNX, NFLX, AKAM, SIRI, LMC, DLTR, MU, EBAY, VOD,
BRCM, GILD, SHLD
Leading stocks > +2% on Wednesday included: HLF, TSLA, TBT, FAZ,
Lagging stocks < -2.0% included: MCP, JDSU, TSL, NFLX, SINA, SWKS, URE,
NTS, FAS, ZION, GRPN, ANF, CSTR
Stocks to Watch on Thursday
Holding Above 30 DMA= 27
MSFT, LIFE, INTC, WFM, WDE, AMAT,
STX, CA, ESRX, CERN, PCLN, MU, NTAP, SPLS, BIDU, HSIC, SNDK, AVGO, CSCO, ISRG,
AMZN, MNST, MYL, SBUX, BBBY, VRTX, CTRX
Moving Above 30 DMA = 0
Moving Below 30 DMA = 10
CHKP, DLTR, GOOG, KLAC, ORLY, PCAR, VOD, XLNX, YHOO, LMCA
Staying Below 30 DMA
DELL, DTV, EXPD, FOSL, GOLD,
LINTA, NVDA, ORCL, SIAL, WYNN, TXN, ADI, BIIB, CTSH, INTU, SIRI, VIAB, LBTYA,
REGN, COST, AAPL, ALTR, NFLX, ADBE, FAST, LLTC, MCHP, NWSA, KRFT, ADP, AKAM,
BMC, FFIV, PAYX, SRCL, XRAY, DISCA, BRCM, CELG, GILD, ALXN, ATVI, CTXS, EBAY,
GRMN, ROST, FISV, MAT, MDLZ, CHRW, CMCSA, SHLD, SBAC, QCOM, EQIX, VRSK, ADSK,
AMGN, EXPE, SYMC, MXIM, FB, NUAN
Five Month Intermediate Term Market Trend: Up
Short Term Market Trend:
Neutral
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