Eight out of nine sectors moved higher on Tuesday…
XLU, XLY and XLK were the strongest sectors…XLB
was the weakest sector.
Breadth weakened…
advancers led decliners…2.04 to 1 on
the NYSE and 1.95 to
1 on the NASDAQ which strengthened.
Tuesday – mixed, advancers led
Monday – strengthened,
advancers led
Friday - strengthened,
advancers led
Thursday – weakened,
decliners led
Wednesday – weakened,
mixed
SPY up .76 at 171.07…volume 75.8 million shares
VIX up .15 at 14.53…
TNX down .21 at 28.53…
TLT up .85 at 103.71...
XLF up .10 at 20.52…volume 33.5 million shares
AAPL up 5.20 at 455.32…volume 14.2 million shares
FB up 2.56 at 45.07…volume 91.4 million shares
Technical Commentary:
IWM +0.99%, QQQ + 0.67%, SPY + 0.45%, DIA +0.23%.
On the first day of the FOMC meeting where many are expecting the
Fed to announce a cutback of $10 billion of the $85 monthly purchases of bonds,
broad stock indexes pushed to higher levels.
The QQQ, IWM and SPY each made a new high close while the DIA is
just below its early August highs. The IWM
closed above resistance and now has a breakout price target of 110.91.
The SPY closed at resistance and could make a horizontal breakout of its
own on Wednesday.
Looking at the sectors XLB, XLE, XLI, and XLV like QQQ and
now IWM are above horizontal resistance making new highs this week. Like SPY, XLK and XLY are right
at resistance and could also break out of resistance as early as Wednesday. As more sectors move above resistance market
breadth is getting stronger.
The NDX +22.14 was led by 17.28 points from seven stocks, AAPL,
FB, AMZN, QCOM, INTC, EBAY and MSFT.
FB +2.56 rallied to a new high
close on increasing volume after Monday’s sharp selloff. FB continues its strong intermediate
term up trend.
Breakout Chart Targets:
QQQ = 78.70, 79.58
IWM = 110.91
SPY = 169.93, 171.56
Remember it is big money
that creates and sustains the trend. As Granville once
wrote, “technical analysis is the art of tracking the market, following
the footsteps of the ‘smart money’ crowd.
The ‘smart money crowd’ is no mysterious ‘THEY.’ It is simply a collection of people who are
reading the market correctly, seeing through the maze, unconfused by this hall
of mirrors.”
Short-term market posture
is up.
Support Levels
ES = 1,660
SPY = 167.30
Q2 Earnings Reactions
Positive Reactions –
ULTA, FIVE, CIEN, SPLK, CRM, GES, DSW, ADSK,
ROST, GME, JRCC, RAX, SSYS, TMUS, SGMS, FWLT, MNST, GRPN, TSLA,
AGU, BOFI, FOSL, ADM, MGM, WPO, CNK, KORS, SATS, MGM, EAT, VIAB,
YOKU, AIG, CTRX, CHK, COP, LNKD, MELI, MYL, NUS, ZAGG, CMCSA, CTRP, GRMN, HES,
MA, MCHP, SODA, YELP, QCOR, FISV, BWLD, MTW, VRTX, WYNN, SWK,
SBUX, ALK, AMZN, CELG, CB, CLF, GILD, IP, MXIM, RCL, HSY, UA, UAL, V, FB,
BIDU, TRIP, COG, CTXS, ETFC, FFIV, AKAM, AAPL, EA, VMW, DAL, LCC, EMC, LLY,
MCO, AKS, FCX, BTU, UTX, HAS, TXN, GE, HON, SLB, STI, WHR, CHKP,
CMG, JCI, KEY, MS, OSTK, SWKS, UNP, UNH, BAC, IBM, SNDK, XLNX, CSX, GS, URI, YHOO,
C, WFC
Negative Reactions – P, SHLD, PWRD,
CREE, MCP, GMCR, SCTY, SUNE, Z, CAR, CHRW, FSLR, LINTA, ANR,
CVX, CME, XOM, K, DTV, RVBD, X, COH, DISCA, ESRX, SOHU, DLR, CERN, CRUS,
DECK, DNKN, EXPE, KLAC, POT, PCP, SWI, TPX, EQIX, ABC, CROX, ANGI, ATI, CAT,
WDC, PNRA, STX, NSC, USNA, TRV, MCD, MO, NFLX, ZION, BHI, AMD,
GOOG, ISRG, MSFT, EBAY, INTC, MAT, SCSS, USB, AXP, KO, MOS
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 pointed up.
____________________
Setups
H Breakout: ADBE, EBAY, FFIV,
SIRI, STX, YHOO, ALK, ANGI, C, CNX, FIVE, NTES, SOHU, SPY, SWI, UAL, YELP,
YNDX, Z,
Diagonal Breakout: AMAT,
MNST, SYMC, WDC, BAC, ESI, SSYS,
Bull Flag: BIDU, CELG,
COST, FB, NFLX, NUAN, F, GRPN, LNKD, PWRD, SINA, SPLK, WLT,
Potential Bullish
Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support:
Moves
New Highs: CTSH, GRMN, ROST,
TXN, WFM, XLNX, CIEN, P,
Gap Up: BRCM,
Gap Down:
H&D Breakout: MU, DDD,
ZION,
Breakout Test:
Bounce: AMZN, QCOM, ANR,
BBRY, JNPR, QIHU,
MACD Divergence
Bounce:
Bear Flag:
Support Break:
______________________
71 of 100 NDX stocks
closed higher on Tuesday…and three were unchanged.
Leading NDX 100 stocks included: FB, GRMN, AMZN,
AVGO, GOLD, MU, VRTX, MNST, BRCM, LBTYA, QCOM, EBAY, BBBY
Lagging NDX stocks included: EXPD, AMGN, MYL, NFLX, CELG, ATVI
Leading stocks > +2% on Tuesday
included: DDD, YELP, MCP, ANR, HLF, CRUS, SSYS, AKS, ANF, CIEN, X,
TPX, BBRY
Lagging stocks < -2.0% included: XONE, SOHU
Stocks to Watch on
Wednesday
Holding Above 30 DMA= 8
TSLA, GRMN, PCLN, VIAB, FB, NFLX, QCOM, WYNN, DELL, NVDA, GMCR, ADSK,
AMGN, AVGO, CTSH, GILD, VOD, SBAC, SHLD, AKAM, ALTR, BIIB, CELG, EXPD, MU,
MXIM, NTAP, ROST, YHOO, REGN, VRSK, FOXA, ADBE, ADP, ALXN, CHRW, DLTR, INTC,
INTU, KLAC, SNDK, XLNX, TXN, AMZN, BRCM, FAST, GOOG, LINTA, SIRI, WFM, XRAY,
LMCA, EBAY, EXPE, FISV, CHTR, BIDU, COST, FFIV, MYL, PAYX, PCAR, SBUX, STX, AMAT,
CA, CERN, CHKP, DTV, ESRX, HSIC, LLTC, MSFT, ORLY, SIAL, ADI, CMCSA, CTXS,
MDLZ, LBTYA, MAT, MCHP, KRFT, ATVI, BBBY, SRCL
Moving Above 30 DMA =
3
EQIX, VRTX, WDC
Moving Below 30 DMA = 0
Staying Below 30 DMA
NUAN, AAPL, GOLD, CTRX, SYMC, FOSL, ISRG, SPLS, CSCO, DISCA, MNST
Thirteen Week
Intermediate Term Market Trend: Neutral, NDX,
RUT = Up
5-Day Short Term Market
Trend: Up
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