DIA New All-time High...QQQ New High Close...INTC +9.27% on EPS...SCSS, URI, EBAY Gap After-hours...

Seven of nine sectors moved higher on Wednesday…XLE, XLK and XLB were the strongest sectors…XLV was the weakest sector.

Sector Posture – seven sectors are positive 

Positive trend: XLB, XLE, XLF, XLK, XLP, XLV, XLY

Neutral trend near resistance: XLI, XLU

Neutral trend near support:

Breadth strengthened…as advancers led decliners 1.23 to 1 on the NYSE and decliners led advancers 1.35 to 1 on the NASDAQ.

Wednesday – strengthened, advancers led

Tuesday – weakened, decliners led

Monday – strengthened, advancers led

Friday – strengthened, mixed

Thursday – weakened, decliners led

SPY up .73 at 197.96 on 80.0 million shares average volume

VIX down .96 at 11.00…

TNX down .11 at 25.38…

TLT up .60 at 113.46...

XLF down .04 at 22.95 on 26.7 million shares

AAPL down .54 at 94.78 on 53.4 million shares

FB up .49 at 67.66…on 29.5 million shares

Technical Commentary:

DIA +0.40%, QQQ +0.40%, SPY +0.37%, IWM – 0.27%.

INTC +2.94, +9.27% gained on Wednesday following better than expected earnings and revenues Tuesday after the close.  Markets opened higher on the INTC and IBM, AAPL news.  

IBM +3.87, +2.05% and AAPL -0.54, -0.57% have entered into a strategic alliance that should increase AAPL product sales and develop enterprise apps on AAPL platform.  The news sent BBRY -1.33, -11.77% lower.

The broad indices ended higher with the DJIA +77.52 at 17,138.20, its 15^th record all-time high this year.  QQQ and SPY also closed higher while IWM moved lower.

After the close, SCSS +1.98, +10.43%, URI +3.94, +3.64% and EBAY +0.74, +1.46% gained following earning reports. 

Trade with the trend of the chart you are trading and continue to move your profit protection stops.  Continue to follow your rules.

Short-term up trend Chart Targets:

SPY = 198.12, 199.06…

QQQ = 94.89, 96.31…

IWM = 116.46, 120.51…

Support Levels

SPY = 196. 59, 194.13, 193.11…

QQQ = 93.57, 91.73, 90.44…

IWM = 114.66, 113.16…

Earnings this week:

Monday – C,

Tuesday – GS, INTC, JPM, JNJ, YHOO

Wednesday – BAC, SCHW, USB, EBAY, LVS, SNDK, SCSS, URI

Thursday – BHI, BAX, BX, ESI, MAT, MS, OSTK, PM, AMD, GOOGL, IBM, SLB, STX, SWKS

Friday – GE, HON, JCI, KSU

Q2 Earnings Reactions

Positive Reactions – C, GS, INTC, JPM, AA, STZ, APOL, BKS, KBH, MON, MU, NKE, SCHN,

Negative Reactions – BAC, JNJ, USB, FAST, FDO, CAMP, BBBY, GIS, CCL, WAG,

Reversal in progress – GIS,

Reversal of Initial Reaction – BBBY, APOL, KBH, MON,

The SPY Market Forecast green line is in the upper zone at 85.

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Setups

Horizontal Breakout:  SPY, AAL, AIG, FAS, STI, TLT, VRSN, AAPL, BIDU, CMCSA, COST, CTXS, FB, MU,

Diagonal Breakout: SCTY, SPWR, SWI, ADBE, ADSK, CELG, GMCR,

Bull Flag: CTRP, ETFC, GME, MTW, NKE, P, SUNE, TPX, UAL, Z, AVGO, CTSH, GILD, MAR, SBUX, XLNX,

Potential Bullish Divergence:  

Gap Up: SCSS, URI, EBAY,

Gap Down: SNDK, LVS,

Bear Flag: DAL, FEYE, JASO,

At Support: IWM, JDSU, GRMN, ILMN, TRIP, TSLA,

C- Pattern:

Moves

New Highs: INTC, MSFT, MU, STX, WDC, KNDI, NTES, V, AMZN,

H Breakout: C, NTES,

Diagonal Breakout:   

Bull Flag Bounce: BBY

Gap Up:  INTC, IBM,

Gap Down: YHOO

Breakout Test:

Bounce: JD, KNDI,

MACD Divergence Bounce: CTXS,      

Bear Flag: TSL, TWTR, ESRX,

Support Break: AKAM, MNST,

C- Pattern:

      

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56 of 100 NDX stocks closed higher on Wednesday and one was unchanged.

Leading NDX 100 stocks included: INTC, VIP, DISCA, MSFT, VIAB, STX, WDC, SNDK, NXPI, MU

Lagging NDX stocks included: FOXA, YHOO, ROST, ESRX, MNST, BIIB, GILD, REGN, EXPE, GRMN

Leading stocks > +2% on Wednesday included: KNDI, NTES, X, BBY, JD, FEYE, PANW, IBM

Lagging stocks < -2.0% included: BBRY, VJET, XONE, TSL, JASO, GTAT

Stocks to Watch on Thursday

Holding Above 30 DMA= 62

MAR, CHRW, SIAL, MU, SNDK, CHTR, AAPL, ADP, CELG, EQIX, NXPI, AVGO, ATVI, KRFT, NFLX, CSCO, ADBE, AMAT, INTU, MSFT, BIDU, CMCSA, BRCM, GOOG, EXPE, SBUX, ALTR, TXN, KLAC, INTC, STX, WDC, ORLY, SRCL, LMCA, XLNX, SYMC, CTSH, DISH, DTV, VRTX, FISV, GILD, SBAC, DLTR, MDLZ, NTAP, EBAY, REGN, VRSK, COST, PCAR, PAYX, AMZN, DISCA, NVDA, CTRX, FB, LBTYA, BBBY, MYL, PCLN, SPLS, CERN, VOD

Moving Above 30 DMA = 3 

HSIC, QCOM, SIRI, VIAB, VIP,                   

Moving Below 30 DMA = 12

ADSK, CTXS, YHOO

Staying Below 30 DMA

AKAM, ALXN, AMGN, BIIB, FOXA, GMCR, ILMN, LLTC, MAT, MNST, TSLA, ADI, TRIP, FFIV, ROST, WYNN, GRMN, CA, CTXS, FAST, ISRG, LINTA, CHKP, MXIM, WFM, ESRX, EXPD, TSCO

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Up, RUT: Neutral