All nine sectors moved higher on Thursday…XLF, XLI and XLV were
the strongest sectors…XLU was the
weakest sector.
Breadth strengthened…advancers led decliners…6.07 to
1 on the NYSE and
5.35 to 1 on the NASDAQ.
Thursday – strengthened, advancers led
Wednesday –
strengthened, decliners led
Tuesday – weakened,
decliners led
Monday – weakened,
decliners led
Friday – strengthened,
advancer led
SPY up 3.57 at 169.17…volume 195.6 million shares
VIX down 3.12 at 16.48…
TNX up .35 at 26.85…
TLT up .17 at 105.49...
XLF up .56 at 20.20 volume 76.4 million shares
AAPL up 3.05 at 489.64…volume 9.9 million shares
FB up 2.28 at 49.05…volume 99.6 million shares
Technical
Commentary:
QQQ +
2.12%, DIA + 2.15%, SPY + 2.16%, IWM + 2.41%.
Stocks
gapped higher and rose big on Thursday after news of the debt-limit proposal
from Republicans. Concerns over a
potential U.S. default has risen over the past few days. While it is considered improbable, the
assessment of a default is now considered at least possible. Today’s news suggested that a default would
be averted.
IWM which led and SPY, DIA and
QQQ all closed near their daily highs.
SPY, IWM and QQQ moved back into their recent trading range prior
to Tuesday’s selloff. Short-term posture
shifts from down to neutral. GLD closed lower for the third
straight day made its lowest close since Aug 8.
XLF +0.56,
+2.85% had its
largest daily gain in more than nine months.
Leaders included ZION, KEY and STI.
GILD, NFLX and FB were among NDX leaders.
MU reported earnings after the close on Thursday with
price moving moderately lower. JPM
and WFC report Friday morning.
Resistance Chart Targets:
QQQ = 79.69
SPY = 172.76
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 SPY down.
Support Levels
ES = 1,685, 1,672,
1,660, 1,641
SPY = 168.33, 167.08,
165.31, 164.62
QQQ = 78.40, 77.36,
76.79, 75.99
IWM = 105.82, 104.85,
103.90, 102.94
Q3 Earnings Reactions
Positive Reactions –
COST, AA
Negative Reactions –
FAST,
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 turned and is pointed up.
____________________
Setups
H Breakout: AMAT, CMCSA, CTSH, ESRX, GRMN, MSFT, SBUX, SNDK, STX, WDC, WFM,
WYNN, ATI, DNKN, GME, UNG, VECO, YNDX,
Diagonal Breakout: AAPL,
QCOM, XLNX, A, CLF, MFRM, PWRD, QIHU,
Bull Flag:
Potential Bullish
Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support: GLD, UAL,
Moves
New Highs: CMG, CNX,
Gap Up: GILD, BAC, C, F,
FAS, GLW, GS, LVS, NKE, SPY, SSYS, STI, V,
Gap Down:
H&D Breakout: X,
Breakout Test:
Bounce: ADBE, ADSK,
AKAM, AMGN, AMZN, ATVI, BBBY, BIDU, CELG, CSCO, DTV, EBAY, FB, GOOG, INTC, NFLX,
PCLN, TXN, YHOO, CREE, DDD, ESI, GRPN, LNKD, P, RAX, SOHU, SPLK, SWK, SWKS, VRSN,
YELP, YOKU, ZION,
MACD Divergence
Bounce:
Bear Flag:
Support Break:
______________________
95 of 100 NDX stocks
closed higher on Thursday.
Leading NDX 100 stocks included: LINTA, GILD, NFLX,
CTRX, FB, ATVI, BIIB, BIDU, REGN, CELG, WDC, DTV, FOSL, AKAM, CHTR, ADBE, CERN
Lagging NDX stocks included: CTXS, SHLD, GMCR
Leading stocks > +2% on Thursday
included: GRPN, FAS, ESI, SSYS, DDD, TSL, URE, CREE, YELP, ZION, VECO,
NKE
Lagging stocks < -2.0% included: FAZ, GMCR
Stocks to Watch on Friday
Holding Above 30 DMA= 31
GRMN, FB,
WYNN, ADSK, AVGO, CTSH, VOD, MU, MXIM, ROST, YHOO, ADBE, DLTR, SNDK, WFM, CHTR,
BIDU, MYL, SBUX, STX, AMAT, CERN, CMCSA, BBBY, MSFT, XRAY, VRSK, ISRG, AAPL,
HSIC, SPLS
Moving Above 30 DMA = 30
AKAM, AMZN, ATVI, BRCM, CELG, COST,
DELL, EXPE, FFIV, FISV, FOSL, GILD, INTC, INTU, KLAC, LINTA, ORLY, PAYX, PCAR,
PCLN, SIRI, SRCL, XLNX, TXN, DISCA, REGN, SBAC, WDC, LMCA, FOXA
Moving Below 30 DMA = 1
SHLD
Staying Below 30 DMA
FAST, NVDA, TSLA, ALXN,
BIIB, EBAY, VIAB, KRFT, NFLX, AMGN, CHKP, MAT, QCOM, SIAL, LBTYA, CHCRW, EXPD,
GOOG, LLTC, MCHP, NTAP, ALTR, EQIX, MDLZ, ADP, DTV, CA, ADI, CSCO, CTXS, NUAN,
GMCR, GOLD, ESRX, VRTX, CTRX, SYMC, MNST
Sixteen Week Intermediate
Term Market Trend: Up
5-Day Short Term Market
Trend: Neutral
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