Eight of nine sectors moved higher on
Wednesday…XLY, XLE and XLK were the strongest sectors…XLU 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
XLB, XLF, XLK, and XLV are in bull flag price patterns. XLY gave a bull flag entry signal on Wednesday.
(click image to enlarge)
Breadth strengthened…as advancers led decliners 1.38 to 1 on
the NYSE and 1.22 to 1 on the NASDAQ.
Wednesday – strengthened, advancers led
Tuesday – strengthened,
decliners led
Monday – weakened,
decliners led
Friday - Holiday
Thursday - strengthened,
advancers led
Wednesday – weakened,
decliners led
SPY up .88 at 197.12 on 72.9 million shares
VIX down .33 at 11.65…
TNX down .18 at 25.47…
TLT up .09 at 112.83...
XLF up .06 at 22.80 on 19.4 million shares
AAPL up .04 at 95.39 on 36.2 million shares
FB up 2.21 at 64.97…on 51.3 million shares
Technical Commentary:
QQQ +
0.74%, SPY + 0.45%, DIA + 0.44%, IWM + 0.13%.
QQQ, SPY and DIA bounced from Tuesday’s 61.8% Fibonacci
level and formed white bullish harami patterns. IWM bounced slightly from a 100% short-term
retracement level and formed a black bullish harami.
QQQ, SPY and DIA are in bull flag price
patterns and are setup
up for a potential entry signal on Thursday.
(click image to enlarge)
AA +0.84,
+5.66% gapped
higher following a positive earnings and outlook reaction after the close on
Tuesday.
GRMN -2.77,
-4.57%
after a
Pacific Crest downgrade Sector Perform to Underperform.
FB +2.21,
+3.52% reversed
Tuesday’s selloff and EXPE +1.36, +1.73% gained after BAC analyst picked both as large-cap
e-commerce companies most likely to beat street estimates.
MU -0.24,
-0.72%
opened
lower, fell to 31.86 where sellers exhausted and buyers took over closing
MU at 32.89 reportedly after MS comments indicated Samsung to
raise DRAM output. Sterne Agee indicated
it was skeptical that Samsung would increase output and reiterated its buy
rating on MU.
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 –
Tuesday –
AA
Wednesday
–
Thursday –
FDO,
Friday –
FAST, WFC
Q2 Earnings Reactions
Positive Reactions – AA,
STZ, APOL, BKS, KBH, MON, MU, NKE, SCHN,
Negative Reactions – CAMP,
BBBY, GIS, CCL, WAG,
Reversal in progress –
Reversal of Initial
Reaction –
The SPY Market Forecast green line is rising in the upper zone at 90.
____________________
Setups
Horizontal Breakout:
NKE, V, GLD, BRCM, CMCSA, COST, GILD, QCOM,
Diagonal Breakout: BX, CSIQ, CTRP, FEYE, FSLR, GOGO, IWM, JASO, LNKD,
MS, P, PANW, QIHU, RAX, RCL, SOHU, SWKS, TSL, TWTR, UBNT, VRSN, YNDX, ADSK, CTXS,
FB, TRIP,
Bull Flag:
SPY, QQQ, BAC, CREE, DDD, ETFC, FAS, GLW, GPRO, JCP, JD, JDSU, MTW, NTES, SCHW,
SCSS, SCTY, SFUN, SPLK, SPWR, SSYS, VJET, X, XONE, YELP, YOKU, Z, WLT, ADBE, AVGO,
BIDU, CELG, EBAY, EXPE, GMCR, GOOG, ILMN, INTC, MAR, MU, NFLX, NTAP, PCLN, SNDK,
STX, WDC, X
Potential Bullish
Divergence: ESRX,
Gap Up: LNX,
Gap Down:
Bear Flag:
At Support: SWI, MNST,
C- Pattern:
Moves
New Highs: BBRY, GME,
NKE, TXN,
H Breakout: AAPL, ROST,
Diagonal Breakout: SUNE,
Bull Flag Bounce: IBM,
TPX, CMCSA, GILD, SBUX, TSLA,
Gap Up: AA
Gap Down:
Breakout Test:
Bounce: AAL, AIG, DAL, HOG, JNPR, LVS, MFRM, NKE,
UAL, ZION
MACD Divergence Bounce:
Bear Flag:
Support Break:
C- Pattern:
______________________
70 of 100 NDX stocks
closed higher on Wednesday.
Leading NDX 100 stocks included: DISCA, FB, ALXN, VRTX, NVDA, SBAC, CMCSA,
ILMN, FFIV, ORLY, AMAT, FOXA, CHTR
Lagging NDX stocks included: GRMN, CA, CERN, FAST, MU, KRFT, NTAP, CTRX,
MNST, NFLX
Leading stocks > +2% on Wednesday
included: SUNE, AAL,
BBRY, MFRM, SPWR, YNDX, SCTY, GPRO, Z, FEYE, JCP
Lagging stocks < -2.0% included:
SFUN, RAX, VJET, XONE
Stocks to Watch on Thursday
Holding Above 30 DMA= 66
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, GRMN, KLAC, INTC, STX, WDC, ORLY,
SRCL, LMCA, XLNX, SYMC, CTSH, DISH, DTV, MAT, VRTX, FISV, GILD, SBAC, VIAB,
DLTR, MDLZ, NTAP, EBAY, QCOM, REGN, VRSK, COST, PCAR, VIP, PAYX, SPLS,
Moving Above 30 DMA = 12
ALXN,
AMZN, DISCA, FB, FFIV, FOXA, LBTYA, NVDA, PCLN, ROST, TSLA, WYNN
Moving Below 30 DMA = 1
GRMN
Staying Below 30 DMA
CA, CTRX,
CTXS, FAST, HSIC, ISRG, LINTA, MNST, MYL, SIRI, TRIP, VOD, YHOO, CHKP, MXIM,
WFM, BBBY, CERN, ESRX, EXPD, TSCO
Sixteen Week
Intermediate Term Market Trend: Up
3-Day Short Term Market
Trend: Down
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