Stocks Fall Following Fed's Comments And Global Sell-Off...

All nine sectors moved lower on Monday… XLU, XLP and XLV were the strongest sectors…XLF was the weakest sector.

Breadth weakened…decliners led decliners…6.87 to 1 on the NYSE and 3.07 to 1 on the NASDAQ…

Monday – weakened, decliners led

Friday – strengthened, advancers led

Thursday weakened, decliners led

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

SPY down 2.01…volume 222.1 million shares

VIX up 1.21 at 20.11…

TNX up .34 at 25.48…

TLT up .45 at 108.85...

XLF down .34 at 18.77…volume 78.7 million shares                 

AAPL down 10.96 at 402.54…volume 17.1 million shares

FB down .60 at 23.93…volume 40.6 million shares

Technical Commentary:

 IWM – 1.32%, SPY – 1.26%, QQQ -0.99%, DIA – 0.98%.

Trade what you see on the chart of your position.  The multi-month intermediate term trend is up, the four-week trend is down and the ten-day short-term trend is down at potential support.  Chart Signals reiterates our Wednesday night guidance…Adjust stops, trade to targets and take bearish trades according to your rules as the month long consolidation continues.  A few bullish setups did appear on Friday 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 – MU, 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. 

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Setups

H Breakout:  XONE,

Diagonal Breakout:  AKAM, CMCSA, COST, EBAY, FAST, MSFT, XLNX, BBRY, P, SPLK, ZION,

Bull Flag:  AMAT, AMZN, BBBY, CSCO, MYL, SBUX, SNDK, STX, WDC, CIEN, CREE, JNPR, MFRM, PWRD, SCSS, YELP,

Potential Bullish Divergence:  

Gap Up:

Gap Down: 

Bear Flag: 

At Support:  CTSH, ESRX, MAT, ROST, ATI, ESI, SCTY

Moves

New Highs:  GRPN,    

Gap Up: 

Gap Down:  BIDU, LVS, NTES, SINA,

H&D Breakout:   

Breakout Test:

Bounce:  MNST,  

MACD Divergence Bounce:

Bear Flag:  

Support Break:   

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22 of 100 NDX stocks closed higher on Monday…

Leading NDX 100 stocks included:  SIRI, AKAM, MSFT, REGN, MNST, COST, VRTX, BIIB, DRFT, VRSK, DLTR, HSIC

Lagging NDX stocks included:  GOLD, YHOO, WYNN, FFIV, BIDU, MU, EXPE, WDC, AAPL, ADBE, INTC, ADI, FB, CTXS, STX, MXIM

Leading stocks > +2% on Monday included: FAZ, BBRY, UCO

Lagging stocks < -2.0% included:  ANR, TSL, CLF, SGOC, SOHO, ANR, LVS, AKS, ATI, LDK, FCX, FAS, MCP, CREE, CDE, HLF, RVBD

Stocks to Watch on Tuesday

Holding Above 30 DMA= 8

LIFE, MU, SPLS, AVGO, CSCO, ISRG, AMZN, ORLY

Moving Above 30 DMA =1

DLTR

Moving Below 30 DMA = 6

ADBE, BBBY, EXPE, NTAP, PCLN, SBUX

Staying Below 30 DMA

GOOG, SNDK, STX, LMCA, AMAT, CA, DELL, ESRX, FOSL, HSIC, INTC, KLAC, MHCP, MNST, MSFT, MYL, NVDA, PCAR, WFM, XLNX, ADI, CTRX, WDC, NFLX, ADP, CERN, CHKP, CHRW, COST, DTV, EXPD, FISV, GRMN, LINTA, NUAN, ORCL, PAYX, ROST, SRCL, VOD, WYNN, YHOO, MDLZ, DISCA, VRSK, DRFT, BIDU, VRTX, GOLD, SIAL, TXN, BIIB, CTSH, INTU, 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

Ten-day Short Term Market Trend: Down