QQQ, DIA and IWM Close New High, Financial Inch Higher...TWTR, FB, P, YELP, Z Move Lower...

Three of nine sectors moved higher on Monday…XLV, XLF and XLY were the strongest sectors…while XLE was the weakest sector. 

Breadth weakened on the NASDAQ…decliners led advancers…1.24 to 1 on the NYSE and 1.07 to 1 on the NASDAQ where advancers led decliners.

Monday – weakened, mixed

Friday – weakened slightly, advancers led

Thursday – strengthened, advancers led

Wednesday – strengthened slightly, decliners led

Tuesday – weakened, decliners led

SPY down .18 at 180.63…volume 79.4 million shares

VIX up .53 at 12.79…

TNX down .11 at 27.41…

TLT up .30 at 104.21...

XLF up .03 at 21.52 volume 27.6 million shares

AAPL up 3.94 at 523.74…volume 8.1 million shares

FB down 1.41 at 44.82…volume 82.5 million shares

Technical Commentary: 

QQQ + 0.24%, DIA + 0.13%, IWM + 0.13%, SPY – 0.10%.

QQQ, DIA and IWM make new high close with breakouts and new targets.  IWM makes last push to close positive.  Trend is still up.  Breakout setups in XLI and XLY and flag setups in XLB and XLP. 

TWTR sold off with other social media stocks including FB, YELP,

Many traders will take the week off for entering new trades with volume getting lighter going into the Thanksgiving Day holiday and half trading day on Friday.  Follow your rules.

In addition to the broad ETFs breakouts also in ABC, AET, AXP, BITA, C, CAR, CI, CVS, DAL, DECK, ENDP, FAS, FLS, GILD, IR, JNJ, JPM, LBTYA, UAL and ALK.

Four interesting bull flags:

 (click image to enlarge)

Chart Signals knows that it is the charts themselves that give, through the buying and selling actions shown, the most objective estimate of future price action.  Of course when new information becomes known that will be factored into the price action which will at times change the trend prior to a chart target.  Recent examples of new information include: DVA, CBST, SPLK, BIIB and ROST.

With Friday’s breakout new short term chart targets are established.

Chart Targets:

SPY = 182.06, 183.02…

QQQ = 85.14, 85.77…

IWM = 112.83, 114.39…

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 SPY posture is up.

Support Levels

ES = 1,774, 1,736

SPY = 177.64, 174.76

QQQ = 83.48, 82.77, 81.37

IWM = 107.93

Q3 Earnings Reactions

Positive Reactions – SPLK, MRVL, GMCR, JCP, LZB, JKS, BRCD, TSN, YOKU, SINA, NTAP, SLXP, PCLN, NVDA, GRPN, AWAY, PRU, TPX, TSO, CTSH, FSLR, TRMB, MDVN, NATI, SPR, ONNN, EXPE, CRR, HAR, GTI, ATML, THOR, TRN, FLT, MCHP, ITT, DICSA, ANR, SWKS, FB, CMCSA, GILD, DWA, LVLT, EA, SEE, SPW, TFX, JCI, X, XRAY, XYL, JLL, PBI, ALR, HUN, ACT, DECK, AMZN, MSFT, FLS, AVY, ALXN, WOOF, COG, BA, CLGX, ESI, EQIX, WLL, TSCO, RRD, PHM, RCL, ALXN, APOL, BCR, NDAQ, NSC, WHR, ILMN, NUS, GNTX, LXK, DD, VFC, CMG, GOOG, BHI, GE, KSU, MS, SLB, STI, LVS, VZ, SNDK, NUE, BTU, AXP, KEY, STLD, URI, USB, INTC, JNJ, SCHW, COST, AA

Negative Reactions – ROST, GME, BBY, CPB, JEC, TSL, CRM, CSCO, RAX, MNST, QCOM, SCTY, IPGP, AIG, BRKR, HME, NEM, XLS, Z, NIHD, AVP, WTW, ROVI, GRMN, JDSU, OSK, CNW, ITRI, CTRX, KRFT, GRMN, MYL, DLR, XCO, WU, LNKD, IACI, MSM, INGR, HTS, VRTX, AAPL, PMCS, MWV, SOHU, AGNC, AGCO, PCL, GT, CMI, VSH, ALSN, ROP, EW, MRK,  RYN, RMD, NCR, KBR, FSL, ESRX, EMN, FIO, SIRI, CAM, TKR, SYMC, CVA, CDNS, AKAM, XRX, CRI, ORLY, CAT, NFLX, COH, ZION, WAT, EMC, UTX, TXN, HON, ISRG, GS, UNP, UNH, EBAY, IBM, XLNX, SCSS, SWK, MU, 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 is above 80.   

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Setups 

H Breakout: BBBY, DTV, MSFT, TXN, WDC, BX, C, DNKN, FIVE, GS, ZION,

Diagonal Breakout: AAPL, WYNN, XLNX, CNX, YNDX,

Bull Flag: BIDU, KKD,  

Potential Bullish Divergence:  GRPN, AKAM, MXIM, WFM

Gap Up:

Gap Down: NUAN

Bear Flag:

At Support: SINA, WLT, XONE,  

C- Pattern:

Moves

New Highs: AMZN, CMCSA, GOOG, MYL, ALK, BAC, UAL,

Gap Up: BX,

Gap Down: CRM,

H Breakout: GOOG, SHLD,

Bounce: AKAM, NVDA, JCP,

MACD Divergence Bounce:

Bear Flag:  DLTR, EXPD, FFIV, XLNX

Support Break: EBAY, FB, INTC, GRPN, SCTY, YELP,

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48 out of 100 NDX stocks closed higher on Monday and one was unchanged.

Leading NDX 100 stocks included: SHLD, MYL, BIIB, VRTX, NVDA, LBTYA, GOOG, EQIX, AMZN, ATVI

Lagging NDX stocks included: FB, VIP, EBAY, FFIV, NUAN, SNDK, GMCR, MU, CHKP, ISRG, FAST

Leading stocks > +2% on Monday included: JCP, UAL, BX

Lagging stocks < -2.0% included: TSL, QIHU, YOKU, YELP, TWTR, SPWR, P, SCTY, SINA, CRM, SPLK, RAX, XONE, CLF

Stocks to Watch on Tuesday

Holding Above 30 DMA= 59

CTSH, VOD, ADBE, SBUX, MSFT, XRAY, AAPL, HSIC, FISV, FOSL, INTU, LINTA, PAYX, WDC, CHKP, GOOG, ADP, AMZN, MAT, DISCA, CA, COST, LLTC, TXN, ADI, MCHP, MU, EXPE, NFLX, ADSK, ESRX, ISRG, ALXN, GILD, MYL, PCLN, MDLZ, MNST, SHLD, YHOO,  QCOM, NTAP, SRCL, BIDU, SIAL, CELG, BIIB, GRMN, ATVI, CERN, CMCSA, CTXS, LBTYA, GMCR, BBBY, DTV, STX,  REGN, CHTR

Moving Above 30 DMA = 3

NVDA, WYNN, LMCA

Moving Below 30 DMA = 4

BIDU, FOSL, KLAC, NUAN

Staying Below 30 DMA

INTC, ROST, SYMC, AMGN, DLTR, GOLD, NVDA, SNDK, SBAC, CHRW, BRCM, PCAR, SIRI, EQIX, FOXA, EBAY, SPLS, AVGO, CSCO, VIAB, AMAT, VIP, WFM, CTRX, KRFT,  VRSK, TSLA, EXPD, FAST, VRTX, FB, MXIM, AKAM, ORLY, FFIV, ALTR, XLNX

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Up