Stocks Fall After Atlanta Fed President Speaks...Downgrades CREE, SCHW Lower...Upgrades SWKS, FFIV Higher...WEN Up On EPS...

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

Breadth weakened as decliners led advancers 2.49 to 1 on the NYSE and 2.57 to 1 on the NASDAQ.

Monday – weakened, decliners led

Friday – strengthened, advancers led

Thursday - mixed

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

SPY down 2.45 at 181.69 volume 149.8 million shares, above average volume

VIX up 1.14 at 13.28…

TNX down .33 at 28.27…

TLT up .52 at 104.93...

XLF down .33 at 21.70 volume 42.6 million shares

AAPL up 2.79 at 535.73 volume 13.5 million shares

FB down 2.03 at 55.91…volume 63.1 million shares

Technical Commentary: 

DIA – 1.18%, SPY – 1.33%, IWM – 1.37%, QQQ – 1.48%.

Broad stock indexes sold off sharply just after noon eastern reportedly after comments from the Atlanta Fed president.  The SPY and DIA broke short-term support while the QQQ and IWM held at their short-term support level.  Be prepared for a potential support break.

CREE -6.11, -9.10% and SCHW -0.83, -3.23% on analyst downgrades.

SWKS +0.69, +2.49%, FFIV +3.49, +3.94% on analyst upgrades.

JNPR +1.78, +7.56% after institutional shareholder presents value plan.

WEN +0.54, +6.40% positive earnings reaction and raised guidance before the open.

The intermediate-term trend is still up, while the short-term trend is down.

Trade with the trend, move your protective stops.  If stopped out on Monday look for potential re-entry and bearish break of support setups. Continue to follow your rules.

Remember it is big money that creates and sustains the trend.  As Granville 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 up trend Chart Targets:

SPY = 184.69, 186.06, 186.90…

QQQ = 87.79, 88.74…

IWM = 115.98, 116.70, 118.54…

Q4 earnings season is underway.

Monday – WEN

Tuesday – JPM, LLTC, WFC

Wednesday – BAC, CSX, FAST

Thursday – AXP, COF, C, GS, INTC, SWKS, UNH

Friday – GE, MS, SLB, STI

Q4 Earnings Reactions

Positive Reactions – WEN, MON, MU, STZ, APOL

Negative Reactions – AA, FDO, BBBY, SCHN,

Reversal of Initial Reaction – FDO

The Market Forecast Green Line is pointed up above 80.

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Setups 

H Breakout: 

Diagonal Breakout: RAX, SSYS,

Bull Flag: AVGO, BIDU, CMCSA, DISH, EXPE, FB, GMCR, MU, VIAB, YHOO, BBRY, CMG, CRM, DDD, GLW, LVS, NTES, P, SCTY, SINA, SOHU, SPLK, SWI, UAL, VECO, XONE, YELP, Z, ZION

Potential Bullish Divergence:  

Gap Up:

Gap Down:

Bear Flag: 

At Support: AKAM, AMZN, CERN, DLTR, FOXA, MAT, GILD, NFLX, ROST, TSLA, FAS, SCSS, TPX,

C- Pattern:

Moves

New Highs: A, ADSK, F, CCL,

Gap Up: FFIV, JNPR, SWKS, UNG, WEN, EXPD,        

Gap Down: CREE,        

H Breakout: GLD,

Diagonal Breakout:  

Breakout Test: RCL,

Bounce: FAZ,  

MACD Divergence Bounce: 

Bear Flag: LNKD,

Support Break: SPY, MSFT, SBUX, ADP, NKE, TIF, FISV, INTU, NVDA, NTAP, PAYX, TXN, CIEN, GRPN, MFRM,

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13 out of 100 NDX stocks closed higher on Monday.

Leading NDX 100 stocks included: FFIV, GOLD, VIP, NFLX, EXPD, SBAC, GRMN, EBAY, AAPL

Lagging NDX stocks included: ISRG, SYMC, BIIB, BIDU, TSLA, TSCO, AKAM, FB, ALXN, FOXA

Leading stocks > +2% on Monday included: JNPR, UNG, FAZ, SWKS

Lagging stocks < -2.0% included: CREE, YELP, TSL, SCTY, FIVE, GRPN, Z, TSLA, FAS, NTES

Stocks to Watch on Tuesday

Holding Above 30 DMA= 55

CTSH, FISV, WDC, GOOG, ILMN, LLTC, EXPE, ADSK, ESRX, ALXN, MDLZ, MNST, YHOO, DISH, SIAL, CMCSA, GMCR, LBTYA, DTV, STX, BRCM,  FB, WYNN, AVGO, EQIX, INTC, ORLY, ADBE, AKAM, VIAB, CA, CHKP, FFIV, PCAR, SNDK, VRTX, XLNX, ATVI, CTRX, KRFT, AMAT, CSCO, SBAC, HSIC, SIRI, AMGN, ISRG, MU, MYL, TRIP, BIIB, CHRW, EXPD, FAST,

Moving Above 30 DMA = 0

Moving Below 30 DMA = 19

ADI, ADP, AMZN, BIDU, CELG, CTXS, GILD, INTU, KLAC, LINTA, NVDA, PAYX, QCOM, ROST, SYMC, TSCO, TSLA, TXN, VOD

Staying Below 30 DMA

DLTR, MXIM, NTAP, SRCL, BBBY, SPLS, FOXA, NXPI, SPLS, VIP, ALTR, EBAY, MAT, DISCA, AAPL, WFM, NFLX, VRSK, PCLN, GRMN, MSFT, CERN, COST, LMCA, SBUX, REGN, GOLD

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Down