Stocks Close Trading Session Basically Flat...Gap Up On TRLA & FDO...TRLA Up 15.42% After Buyout Offer From Z...FDO Up 24.86% With DLTR Eyeing To Buy Out...

Six out of nine sectors moved higher on Monday… XLU, XLB and XLY were the strongest sectors…XLP was the weakest sector.

Sector Posture – seven sectors are positive 

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

Neutral trend near resistance:

Neutral trend near support: XLI, XLU

Breadth strengthened as decliners led advancers 1.29 to 1 on the NYSE and 1.71 to 1 on the NASDAQ.

Monday – strengthened, decliners led

Friday – weakened, decliners led

Thursday – weakened, decliners led

Wednesday – weakened, mixed

Tuesday – strengthened, advancers led

SPY up .08 at 197.80 on 69.1 million shares, below average volume

VIX down .13 at 12.56…

TNX up .22 at 24.91…

TLT down .16 at 115.51...

XLF up .01 at 22.90 on 42.1 million shares, above average volume

AAPL up 1.35 at 99.02 on 55.1 million shares

FB down .27 at 74.92…on 41.5 million shares

Technical Commentary:

 QQQ + 0.03%, SPY + 0.04%, DIA + 0.15%, IWM – 0.50%.

The SPY and QQQ formed bull flag patterns as did several stocks including FB, SWKS and BX.

                  (click image to enlarge)

This week there are several economic announcements including the FOMC meeting on Tuesday and Wednesday with announcement expected Wednesday at 2 pm ET.  GDP Q2 will be out Wednesday at 8:30 am ET.  The Unemployment report for July will be out Friday morning 8:30 am.

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 = 96.31, 97.52, 98.28

IWM = 116.46, 119.09…

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 – CMI, TSN, WYNN, JEC, HLF

Tuesday – AET, AKS DLR, FISV, GLW, HCA, MDC, YNDX, AMGN, AXP, BWLD, CHRW, ESRX, MAR, MRK, PFE, SLCA, X, UPS, VRTX

Wednesday – GRMN, HES, AEM, AKAM, CTRP, EQIX, KRFT, LRCX, MTW, WDC, WFM, YELP

Thursday – DDD, BZH, CL, COP, DTV, XOM, ESI, RYL, TEVA, TWC, EXPE, LNG, LNKD, MA, MCHP, SPWR, TSLA, TRLA

Friday – CBOE, CVX, HLT, PG, BRK.A

Earnings week in review:

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

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

Friday – MCO, SWK, STO, WLB, XRX

Q2 Earnings Reactions

Positive Reactions – CMG, BIIB, ISRG, SWI, UA, VRSN, AAPL, APD, CA, CHKP, CMCSA, CTXS, DAL, DECK, DOW, FFIV, FB, FTI, GD, LXK, LMT, NBR, NDAQ, NOK, OSTK, ORLY, PETS, RHI, STLD, SWK, TSCO, TXN, WHR, XRX, ZION, BX, C, GOOGL, GS, HON, INTC, KSU, JPM, PM, SCSS, SWKS, URI, AA, STZ, APOL, BKS, KBH, MON, MU, NKE, SCHN,

More than 10% - CMG, BIDU, BIIB, ISRG, OSTK, SWI, UA, VRSN,

Negative Reactions – ALK, ALXN, AMZN, ANGI, ATI, BA, CAT, CELG, DHI, DNKN, EA, ETFC, FCX, GM, HOG, ILMN, JNPR, KLAC, KMB, KO, LLTC, MCD, NFLX, P, PHM, QCOM, SBUX, STI, STO, T, TPX, TRIP, TRV, UTX, V, XLNX, AMD, BAC, BHI, JCI, JNJ, LVS, MAT, SLB, SNDK, STX, USB, YHOO, FAST, FDO, CAMP, BBBY, GIS, CCL, WAG,

More than -10% - AMD, ANGI, CAMP, DHI, MXIM, P, SNDK, XLNX,

Reversal in progress – GIS, WAG,

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

The SPY Market Forecast green line is in the upper zone at 89.

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Setups

Horizontal Breakout: BBY, JD, NKE, PANW, KKD, ADBE, WDC, YHOO,  

Diagonal Breakout: GLD, STI, TSL, JCP, ESRX, EXPE, PCLN,  

Bull Flag: SPY, BX, C, FAS, MS, FB, INTC, MAR,  

Potential Bullish Divergence: IWM,  

Gap Up:  

Gap Down:  

Bear Flag: 

At Support: AIG, HOG, SSYS, YNDX, ADSK, ILMN,

C- Pattern:

Moves

New Highs: HPQ, Z, AAPL,  

H Breakout: IBM, NTES, QIHU, SCHW,  

Diagonal Breakout: LVS, WYNN,  

Bull Flag Bounce: 

Gap Up: FSLR,

Gap Down: MNST,  

Breakout Test:  

Bounce: SPWR, SUNE, SWKS, CREE, TXN,     

MACD Divergence Bounce: CSIQ,   

Bear Flag: 

Support Break: MU,  

C- Pattern:

      

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40 of 100 NDX stocks closed higher on Monday.

Leading NDX 100 stocks included: SBAC, WYNN, MXIM, CTXS, GILD, ATVI, WDC, AAPL, DLR, TXN

Lagging NDX stocks included: MU, MNST, ILMN, ALXN, MYL, SIRI, ALTR, EXPD

Leading stocks > +2% on Monday included: QIHU, GPRO, SFUN, NTES, SPWR, SUNE, FSLR

Lagging stocks < -2.0% included: GOGO, AAL, BBRY, VRSN, SWI, P, GTAT VJET, XONE, UBNT, SSYS, ZION

Stocks to Watch on Tuesday

Holding Above 30 DMA= 60

CHRW, SIAL, MU, CHTR, ADP, EQIX, ATVI, CSCO, ADBE, INTU, MSFT, BIDU, CMCSA, GOOG, SBUX, INTC, STX, WDC, LMCA, SYMC, DTV, VRTX, FISV, GILD, SBAC, MDLZ, NTAP, EBAY, VRSK, COST, PCAR, PAYX, DISCA, CTRX, FB, BBBY, MYL CERN, SIRI, AAPL, CELG, CTSH, EXPD, EXPE, MAR, REGN, ALXN, AMGN, CTXS, FFIV, PCLN, VOD, WYNN, BIIB, CHKP, ISRG, CA, ORLY, TSCO, YHOO

Moving Above 30 DMA = 1

DLTR

Moving Below 30 DMA = 8

MU, MYL, SIRI                    

Staying Below 30 DMA

ADSK, AMZN, BRCM, HSIC, KLAC, LINTA, SPLS, AVGO, DISH, ILMN, QCOM, TRIP, ALTR, GMCR, KRFT, LLTC, NXPI, TXN, VIAB, XLNX, AMAT, NFLX, SRCL, LBTYA, NVDA, VIP, SNDK, AKAM, FOXA, MAT, MNST, TSLA, ADI, ROST, GRMN, FAST, MXIM, WFM, ESRX

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Neutral