SPY, DIA Continue Bull Flag Pattern, QQQ Bounce...BIDU, CELG, GOOS, SNDK, STX, WDC Bounce...EPS Continue Next Week...

Seven of nine sectors moved higher on Friday…XLI, XLK and XLY 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: XLU

Neutral trend near support: XLI

Breadth strengthened…as advancers led decliners 1.21 to 1 on the NYSE and 1.00 to 1 on the NASDAQ.

Friday – strengthened, mixed

Thursday – weakened, decliners led

Wednesday – strengthened, advancers led

Tuesday – strengthened, decliners led

Monday – weakened, decliners led

SPY up .27 at 196.61 on 64.2 million shares

VIX down .51 at 12.08…

TNX down .12 at 25.20…

TLT up .72 at 113.58...

XLF up .04 at 22.69 on 22.69 million shares

AAPL up .18 at 95.22 on 34 million shares

FB up 1.47 at 66.34…on 39.2 million shares

Technical Commentary:

QQQ + 0.64%, DIA + 0.14%, SPY + 0.14%, IWM – .0.13%.

QQQ, SPY and DIA are in bull flag price patterns.  QQQ gave a 20 cent bounce entry signal on Friday.

                  (click image to enlarge)

Like the SPY and DIA a large number of stocks are also in bull flag price patterns and can be viewed in our Bull Flag Setups list below.  Like QQQ; ADBE, BIDU, CELG, CMCSA, GOOG, SNDK, STX, TXN, WDC and WLT also gave 20 cent Bull Flag bounce entry signals on Friday.

                  (click image to enlarge)

The bull flag pull back on Monday and Tuesday is the reason disciplined short-term traders move their stops up and minimize profit give back.  We hope this was a week that you locked in some profits and are now looking for re-entry.

Positive earnings reaction this week from AA which is now in a bull flag pattern and negative earnings reaction from FAST and FDO.   WFC -.0.32, -0.62% earnings reaction on Friday was so modest we evaluate it as neutral.

Earning announcements next week include C, BAC, GS, JPM, MS, INTC, IBM, JNJ, GOOGL, SNDK, STX and GE.

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 = 120.67, 121.76…

Support Levels

SPY = 196. 59, 194.13, 193.11…

QQQ = 93.57, 91.73, 90.44…

IWM = 116.65, 116.05, 114.66…

Earnings this week:

Monday – C,

Tuesday – GS, INTC, JPM, JNJ, YHOO

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

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

Friday – GE, HON, JCI, KSU,

Q2 Earnings Reactions

Positive Reactions – AA, STZ, APOL, BKS, KBH, MON, MU, NKE, SCHN,

Negative Reactions – FAST, FDO, CAMP, BBBY, GIS, CCL, WAG,

Reversal in progress –

Reversal of Initial Reaction –

The SPY Market Forecast green line is in the upper zone at 80.

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Setups

Horizontal Breakout: TPX, V, MNST,

Diagonal Breakout: X, ADSK, BRCM, NFLX, PCLN,

Bull Flag: SPY, ATI, CREE, CTRP, DDD, ETFC, FAS, GME, GPRO, JCP, JD, JDSU, MTW, NKE, NTES, P, SCTY, SPLK, SSYS, VJET, XONE, AKS, YOKU, Z, GLD, AAPL, AVGO, CTXS, EXPE, GMCR, ILMN, MAR, MU, NTAP, SBUX, TSLA, XLNX,

Potential Bullish Divergence: ESRX,

Gap Up:   

Gap Down:

Bear Flag: 

At Support: ROST,

C- Pattern:

Moves

New Highs: BBRY, SUNE, WDC,

H Breakout: AMZN, SUNE, EBAY, WDC,

Diagonal Breakout: TRIP,

Bull Flag Bounce: QQQ, WLT, ADBE, BIDU, CELG, CMCSA, GOOG, SNDK, STX, TXN, WDC,

Gap Up: AMZN, EBAY,

Gap Down:    

Breakout Test:

Bounce: AMZN, FB, TRIP, YHOO,

MACD Divergence Bounce:     

Bear Flag:  

Support Break: RAX,

C- Pattern:

      

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59 of 100 NDX stocks closed higher on Thursday and two were unchanged.

Leading NDX 100 stocks included: AMZN, WDC, EBAY, FB, BBBY, CTRX, ISRG, LBTYA, CELG, BIDU

Lagging NDX stocks included: FAST, ROST, CHKP, VIAB, SYMC, QCOM, MYL, FFIV, MAR, CA

Leading stocks > +2% on Friday included: VJET, SUNE, X, GOGO, WLT

Lagging stocks < -2.0% included: GPRO, RAX, JD, SFUN,

Stocks to Watch on Friday

Holding Above 30 DMA= 68

MAR, CHRW, SIAL, MU, SNDK, CHTR, AAPL, ADP, CELG, EQIX, NXPI, AVGO, ATVI, KRFT, GMCR, ILMN, ADSK, NFLX, CSCO, ADBE, AMAT, INTU, MSFT, BIDU, CMCSA, BRCM, GOOG, AKAM, AMGN, BIIB, EXPE, LLTC, SBUX, ALTR, TXN, ADI, KLAC, INTC, STX, WDC, ORLY, SRCL, LMCA, XLNX, SYMC, CTSH, DISH, DTV, MAT, VRTX, FISV, GILD, SBAC, DLTR, MDLZ, NTAP, EBAY, REGN, VRSK, COST, PCAR, VIP, PAYX,AMZN, DISCA, FOXA, NVDA, MNST

Moving Above 30 DMA = 5  

CTRX, FB, LBTYA, TRIP, YHOO                    

Moving Below 30 DMA = 3

FFIV, MYL, QCOM

Staying Below 30 DMA

ALXN, PCLN, ROST, SPLS, TSLA, VIAB, WYNN, GRMN, CA, CTXS, FAST, HSIC, ISRG, LINTA, SIRI, VOD, CHKP, MXIM, WFM, BBBY, CERN, ESRX, EXPD, TSCO

Sixteen Week Intermediate Term Market Trend: Up

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