QQQ, DIA, SPY, And IWM End The Day Soft...Giving Back Some Gains...FB Has Another Record Day...JCP Down 14.96% On Huge Volume...

Two of nine sectors moved higher on Wednesday…XLF, XLB and XLE were the strongest sectors…XLP was the weakest sector. 

 

Breadth weakened slightly…advancers led decliners…1.03 to 1 on the NYSE and 1.12 to 1 on the NASDAQ where decliners led advancers.

 

Wednesday – weakened, mixed

Tuesday – strengthened, advancers led

Monday – mixed, decliners led

Friday – weakened, decliners led

Thursday – weakened, decliners led

 

 

SPY down .49 at 169.04…volume 117.3 million shares

VIX down .07 at 14.01…

TNX down .39 at 26.14…

TLT up .22 at 107.05...

XLF up .11 at 20.12…volume 39.01 million shares

 

AAPL down 7.57 at 481.53…volume 11.3 million shares

FB up 1.01 at 49.46…volume 87.8 million shares

 

Technical Commentary: 

DIA – 0.42%, QQQ – 0.34%, SPY – 0.29%, IWM – 0.19%.

 

Today was a repeat of yesterday with SPY, DIA, and QQQ closing lower but still

in a bull flag setup while IWM closed down .20.

 

FB closed higher by 1.01 or 2.08% on 87.8 million shares.  STX advanced breaking through horizontal resistance and closing up 2.07 or 4.95%.  JCP gapped down closing with 100.9 million shares traded and down 1.78 or 14.9%.

 

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 down. 

 

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Setups 

H Breakout: CTSH, GRMN, ROST, SBUX, WFM, ESI, FSLR, GLW, TLT, YELP,

 

Diagonal Breakout: WDC, GME, LNKD, SINA,

 

Bull Flag:  ADBE, ADSK, AKAM, AMGN, AMZN, BRCM, CELG, CMCSA, COST, FAST, GILD, GOOG, MAT, MU, MYL, NTAP, SIRI, TXN, XLNX, ANR, ATI, CNX, CRM, DNKN, F, FAS, GRPN, GS, JNPR, RAX, SCTY, SPLK, SPY, UNG, Z,

 

Potential Bullish Divergence: SYMC, MFRM,

 

Gap Up:

 

Gap Down: 

 

Bear Flag:

 

At Support: MNST, BAC, SWI,

 

Moves

New Highs: FB, TSLA, WYNN,  

 

Gap Up:    

 

Gap Down: JCP,  

 

H&D Breakout: STX,   

 

Breakout Test:

 

Bounce: CSCO, ESRX, SHLD, P, RCL, TPX, VECO,

 

MACD Divergence Bounce: 

 

Bear Flag:  

 

Support Break:  

 

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48 of 100 NDX stocks closed higher on Wednesday.

 

Leading NDX 100 stocks included: STX, SHLD, ESRX, GRMN, AMAT, CHTR, FB, TSLA, GOLD, CSCO, WDC, CTRX

 

Lagging NDX stocks included:  GMCR, AMGN, MXIM, EBAY, GILD, AAPL, FOSL, MAT, MCHP, NUAN, DTV, CHRW

 

Leading stocks > +2% on Wednesday included: TSL, ZAGG, SINA, DECK, HLF, SOHU, YELP, TPX

 

Lagging stocks < -2.0% included: JCP, BBRY, GMCR, Z, SWKS, XONE, TIF

 

Stocks to Watch on Thursday

Holding Above 30 DMA= 83

TSLA, GRMN, PCLN, VIAB, FB, NFLX, QCOM, WYNN, DELL, NVDA, 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, MYL, PAYX, PCAR, SBUX, STX, AMAT, CA, CERN, LLTC, SIAL, ADI, CMCSA, MDLZ, LBTYA, MAT, MCHP, BBBY, EQIX, DISCA, FOSL, ATVI, CSCO, ORLY, SPLS, SRCL,WDC

 

Moving Above 30 DMA = 6

ATVI, CSCO, ORLY, SPLS, SRCL, WDC

 

Moving Below 30 DMA = 3

AAPL, DTV, HSIC

 

Staying Below 30 DMA

CHKP, CTXS, FFIV, MSFT, KRFT, NUAN, GMCR, GOLD, ESRX, VRTX, CTRX, SYMC, ISRG, MNST

 

Thirteen Week Intermediate Term Market Trend: Up

5-Day Short Term Market Trend: Neutral