SPY Moves Higher as Divergence Bounce Continues...YELP, SPLK on Volume Spike...

All nine sectors moved higher again on Wednesday… XLV, XLU and XLY were the strongest sectors…XLB was the weakest sector.

Breadth weakened slightly…advancers led decliners…3.14 to 1 on the NYSE and 1.21 to 1 on the NASDAQ…

Wednesday – weakened slightly, advancers led

Tuesday – strengthened, advancers led

Monday – weakened, decliners led

Friday – strengthened, advancers led

Thursday weakened, decliners led

SPY up 1.56…volume 134.7 million shares

VIX down 1.26 at 17.21…

TNX down .50 at 25.39…

TLT up .70 at 108.58...

XLF up .20 at 19.32…volume 66.8 million shares

                

AAPL down 4.56 at 398.07…volume 13.1 million shares

FB down .09 at 24.16…volume 29.8 million shares

Technical Commentary:

DIA +0.70%, SPY + 0.99%, QQQ +0.90%, IWM +0.47%.

Trade what you see on the chart of your position.  The multi-month intermediate term trend is up, the four-week trend is down, the ten-day short-term trend is down while the five-day short-term trend is up.  Wednesday was a divergence support bounce continuation. 

Plenty of entry opportunities on Tuesday and Wednesday especially in stocks like YELP, SPLK, P, ZION and SCSS.   Two interest breakout setups worth looking at for tomorrow.  TSLA made its second highest close at 105.72.  A breakout above 107.13 has a chart target of 118.96. 

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SCTY is forming a potential double bottom.   A breakout above 37.98 has a chart target of 43.30.    

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Chart Signals guidance…Adjust stops, trade to targets and take bearish or bullish trades according to your rules as the month long consolidation continues.  More bullish setup entries did occur on Wednesday and as always follow 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.

EPS Reaction Summary

EPS Gainers –  ADBE, ULTA, 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 – ORCL, 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 flat. 

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Setups

H Breakout:  DELL, PCLN, QCOM, SBUX, WFM, ANGI, CRM, MFRM, PWRD, SCTY, TSLA,

Diagonal Breakout:  AMGN, ATVI, BRCM, CELG, COST, CTSH, EBAY, FAST, FB, GILD, GRMN, MAT, MSFT, SIRI, SYMC, XLNX, BAC, C, CMG, DDD, JCP, LNKD, SSYS, STI, TIF, UAL,

Bull Flag: TBT,   

Potential Bullish Divergence:  UNG

Gap Up:

Gap Down: 

Bear Flag:   

At Support:  

Moves

New Highs: MU, GRPN, XONE, ZION

Gap Up:  ADBE, WDC, BBRY, CREE, F, NTES, P, RAX, SINA,

Gap Down: FIVE, GLD,

H&D Breakout:  AKAM, BIDU, CMCSA, BBRY, SPLK, YELP, Z,

Breakout Test:

Bounce: CSCO, NTAP,

MACD Divergence Bounce:  

Bear Flag:  

Support Break:  

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83 of 100 NDX stocks closed higher on Wednesday…

Leading NDX 100 stocks included:  ALXN, BIIB, SIRI, REGN, AMGN, CELG, MU, GILD, ADBE, BIDU, VRTX, EQIX, CHKP, VIAB

Lagging NDX stocks included:  GOLD, AMAT, NUAN, AAPL, ORLY, QCOM, EBAY, NVDA, NFLX

Leading stocks > +2% on Wednesday included: YELP, TSL, CREE, SINA, NTES, TSLA, FAS, URE, ICE, VMW, GMCR, NKE, BBRY, X, SSYS, F, GRPN, ZION

Lagging stocks < -2.0% included:  CDE, ANR, AKS, FAZ, CLF, SGOC

Stocks to Watch on Thursday

Holding Above 30 DMA= 14

LIFE, MU, SPLS, AVGO, CSCO, ISRG, AMZN, DLTR, ADBE, DELL, INTU, PAYX, SBUX, WFM

Moving Above 30 DMA = 11

ADP, BBBY, CHKP, EXPE, GRMN, MCHP, NTAP, PCLN, SNDK, SRCL, VRTX

Moving Below 30 DMA = 2

AMAT, ORLY

Staying Below 30 DMA

GOOG, STX, LMCA, CA, ESRX, FOSL, HSIC, INTC, KLAC, MNST, MSFT, MYL, NVDA, PCAR, XLNX, ADI, CTRX, WDC, NFLX, CERN, CHRW, COST, DTV, EXPD, FISV, LINTA, NUAN, ORCL, ROST, VOD, WYNN, YHOO, MDLZ, DISCA, VRSK, KRFT, BIDU, GOLD, SIAL, TXN, BIIB, CTSH, SIRI, VIAB, LBTYA, REGN, AAPL, ALTR, FAST, LLTC, NWSA, AKAM, BMC, FFIV, XRAY, BRCM, CELG, GILD, ALXN, ATVI, CTXS, EBAY, MAT, CMCSA, SHLD, SBAC, QCOM, EQIX, ADSK, AMGN, SYMC, MXIM, FB

Four-Week Intermediate Term Market Trend: Down

Five-day Short Term Market Trend: Up