Massive Rebound...NDX New High Close as Healthcare, Technology Lead...SWKS +14% on EPS...

All nine sectors moved higher on Friday reversing some and in the case of XLB, XLK, XLP, XLU, XLV and XLY all of Thursday’s loses … XLV, XLK and XLF were the strongest sectors…XLE 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 4.66 to 1 on the NYSE and 3.78 to 1 on the NASDAQ.

Friday – strengthened, advancers led

Thursday – weakened, decliners led

Wednesday – strengthened, advancers led

Tuesday – weakened, decliners led

Monday – strengthened, advancers led

SPY up 2.00 at 197.71 on 124.3 million shares, above average volume

VIX down 2.48 at 12.06…

TNX up .09 at 24.84…

TLT down .37 at 114.52...

XLF up .26 at 22.91 on 21 million shares

AAPL up 1.34 at 94.43 on 49.9 million shares

FB up 2.01 at 68.42…on 42.3 million shares

Technical Commentary:

QQQ +1.59%, IWM +1.56%, SPY +1.02%, DIA +0.68%.

A larger than typical rebound on Friday following a large down day offset Thursday’s selloff in many stocks.  QQQ did close at a new bull market high after a positive earnings reaction on GOOGL and GOOG shares.  GILD, ILMN, AVGO, ADSK, FB, TRIP, MAR and BRCM moved up and closed higher than Wednesday’s close.

                  (click image to enlarge)

Financials were strong with BX +4.57%, ETFC +3.48%, FAS +2.99% and SCHW +2.58%.

Earning announcements really increase this next week.  See Earnings this week below.  Short-term technical trades in and out by earnings.  

There are a large number of interesting bull flag, diagonal and horizontal breakout setups on the charts for Monday.  See our Setups below.

                  (click image to enlarge)

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 – HAL, HAS, PETS, STI, CMG, NFLX, STLD, TXN, ZION  

Tuesday – ATI, MO, KO, CMCSA, DD, HOG, KMB, LXK, LMT, MCD, BTU,  RF, STT, TRV, UTX, VZ, AAPL, BRCM, EA, HTZ, ISRG, JNPR, LLTC, MSFT, NBR, VMW, XLNX

Wednesday – ANGI, T, BIIB, BA, CA, CHKP, CRUS, CTXS, DAL, DOW, ETFC, FFIV, FB, FCX, GD, GILD, ILMN, NSC, NXPI, ORLY, QCOM, TSCO, TRIP, WHR

Thursday – MMM, ALK, ALXN, AMZN, BIDU, BMY, CAT, CELG, CNX, DECK, DNKN, F, GM, DHI, JBLU, KLAC, LLY, MXIM, NOK, NUE, OSTK, P, POT, PHM, SBAC, SIAL, SWI, LUV, SBUX, SRCL, TPX, NDAQ, UA, UNP, UAL, V,

Friday – MCO, SWK, STO, WLB, XRX

Last week:

Monday – C,

Tuesday – GS, INTC, JPM, JNJ, YHOO

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

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

Friday – GE, HON, JCI, KSU

Q2 Earnings Reactions

Positive Reactions – BX, C, GOOGL, GS, HON, INTC, KSU, JPM, PM, SCSS, SWKS, URI AA, STZ, APOL, BKS, KBH, MON, MU, NKE, SCHN,

Negative Reactions – AMD, BAC, BHI, JCI, JNJ, LVS, MAT, SLB, SNDK, STX, USB, YHOO, 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: C, GME, GPRO, JDSU, MS, SPY, PANW, ADSK, AVGO, EBAY, FB,  

Diagonal Breakout:  AAL, AIG, CSIQ, CTRP, FEYE, GLW, GOGO, IWM, JD, MTW, NKE, SFUN, SPWR, Z, CRM, DDD, GTAT, SPLK, SSYS, UBNT, VJET, XONE, YELP, YNDX, YOKU, ADBE, EXPE, GMCR, INTC, PCLN,

Bull Flag: BBY, FAS, IBM, SCSS, SUNE, TPX, UAL, V, CREE, MAR, MU, SBUX, STX, WDC,

Potential Bullish Divergence: JASO, QIHU, SOHU, TSL, TWTR,

Gap Up:

Gap Down:  

Bear Flag:   

At Support: YHOO,

C- Pattern:

Moves

New Highs: BX, GME, KNDI, NTES, ADSK, AMZN, FB,

H Breakout: SWI, GOOG,

Diagonal Breakout: SCHW, ADSK,

Bull Flag Bounce: AVGO, COST,

Gap Up: SWKS, GOOG,  

Gap Down:

Breakout Test:

Bounce: BBRY, ETFC, GLW, GPRO, IWM, SPY, MNST, ROST, SNDK,

MACD Divergence Bounce: P, RCL, SCTY, TRIP, TSLA,

Bear Flag: 

Support Break:

C- Pattern: 

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94 of 100 NDX stocks closed higher on Friday and one was unchanged.

Leading NDX 100 stocks included: GILD, ILMN, AVGO, GOOG, ADSK, FB, TRIP, MAR, BRCM, CELG

Lagging NDX stocks included: NVDA, VIP, STX, MAT, SIRI, INTC

Leading stocks > +2% on Friday included: SWKS, BX, SCTY, KNDI, GME, ETFC, P, BBRY, SPWR, FAS, AAL, RCL, GPRO, GOGO, SWI, TSL, SCHW, UAL, SFUN, GTAT, YELP, UBNT, PANW, YNDX, CREE, DDD, HOG, SSYS, WLT,

Lagging stocks < -2.0% included:

Stocks to Watch on Monday

Holding Above 30 DMA= 50

CHRW, SIAL, MU, CHTR, ADP, EQIX, ATVI, CSCO, ADBE, AMAT, INTU, MSFT, BIDU, CMCSA, BRCM, GOOG, SBUX, KLAC, INTC, STX, WDC, ORLY, SRCL, LMCA, XLNX, SYMC, DISH, DTV, VRTX, FISV, GILD, SBAC, MDLZ, NTAP, EBAY, VRSK, COST, PCAR, PAYX, AMZN, DISCA, CTRX, FB, LBTYA, BBBY, MYL, CERN, VOD, SIRI, VIAB

Moving Above 30 DMA = 19

AAPL, ADSK, ALTR, AVGO, CELG, CTSH, DLTR, EXPD, EXPE, HSIC, ILMN, KRFT, LLTC, MAR, NFLX, NXPI, REGN, SPLS, TXN                 

Moving Below 30 DMA = 2

NVDA, VIP

Staying Below 30 DMA

PCLN, QCOM, SNDK, WYNN, CTXS, YHOO, AKAM, ALXN, AMGN, BIIB, FOXA, GMCR, MAT, MNST, TSLA, ADI, TRIP, FFIV, ROST, GRMN, CA, FAST, ISRG, LINTA, CHKP, MXIM, WFM, ESRX, TSCO

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Neutral