Indexes Pause Following Two-day Rally as MSFT, BIIB, GILD, INTC and AMZN Lead NDX...

Just two of nine sectors moved higher on Tuesday…XLB, XLF and XLK were the strongest sectors…XLE was the weakest sector.

Breadth weakened as decliners led advancers 1.43 to 1 on the NYSE and 2.15 to 1 on the NASDAQ.

Tuesday – weakened, decliners led

Monday – strengthened, advancers led

Friday – strengthened, advancers led

Thursday – weakened, decliners led

Wednesday – strengthened, advancers led

SPY down .26 at 193.53 on 73.6 million shares, below average volume

VIX down .10 at 14.13…

TNX up .22 at 24.42…

TLT down .75 at 114.76...

XLF up .05 at 22.45 on 22 million shares, below average volume

AAPL down .02 at 95.97 on 33.8 million shares

FB down .61 at 72.83…on 27.4 million shares

Technical Commentary:

QQQ -0.04%, DIA -0.04%, SPY -0.14%, IWM -0.69%.

The SPY Market Forecast green line hit 25.54 today, even as the broad indexes spent most of the day lower.  Only one time, Nov 2012, in the last two years has the SPY MF green line been below 20, rallied to 25 and then turned lower temporarily.  All the other instances of below 20 rise to 25 have been continuation moves to the upside.

Traders follow your entry rules, now.

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 = 194.30, 195.78...

QQQ = 96.31, 97.52, 98.28

IWM = 112.23, 114.31...

Support Levels

SPY = 191.57, 189.51...

QQQ = 93.57, 91.73, 90.44…

IWM = 110.15, 108.86...

Earnings season is winding down while the ramp up for retail earnings begins. 

This week:  PCLN, GOGO, CSIQ, JDSU, CREE, RAX, VJET, XONE, SINA, NTES, ADSK, NTAP, JCP

Q2 Earnings Reactions

Positive Reactions – PCLN, NVDA, MNST, ANR, FSLR, GTAT, LNKD, SFUN, SSYS, SUNE, UBNT, YOKU, AKS, AMGN, CHRW, ESRX, HCA, HES, LRCX, TSN, TWTR, WYNN, X, YNDX, 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% - TWTR, CMG, BIDU, BIIB, ISRG, LNKD, OSTK, SWI, SFUN, SSYS, SUNE, UA, VRSN, X

Negative Reactions – GOGO, RAX, SCTY, YELP, CTSH, MYL, AEM, AET, AKAM,  BWLD, BZH, CL, CMI, COP, DDD, ESI, GLW, GRMN, HLF, JEC, KRFT, LNG, MTW, RYL, SLCA, UPL, UPS, VRTX, XOM, 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, BWLD, CAMP, DHI, HLF, 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 pointed UP at 24.

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Setups

Horizontal Breakout: SPY, QQQ, SOXL, AAL, AIG, CTRP, ETFC, FAS, IBM, MS, SCSS, SFUN, SOHU, SWI, SWKS, TPX, VRSN, AAPL, CELG, CMCSA, ESRX, EXPE, GILD, MAR, NFLX, SBUX,

Diagonal Breakout: IWM, AA, DAL, EMC, LOCO, RCL, SSYS, CTXS, MU, STX, TXN,

Bull Flag: SCTY, TLT, TWTR, UA, Z, BIDU, EBAY, FB, INTC, ROST, WDC,

Potential Bullish Divergence: FEYE

Gap Down: CREE,

C- Pattern: YELP, NXPI, AVGO, TXN, KLAC, TER, MU, SNDK, SOXL, SPY, FAS, EA

Moves

New Highs: LNKD, MFRM, X, TSLA, CAR, YY, BITA

Bull Flag Bounce: MSFT,

MACD Divergence Bounce: MU,

C- Pattern: GTAT,

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39 of 100 NDX stocks closed higher on Tuesday and three were unchanged.

Leading NDX 100 stocks included: ISRG, BIIB, NXPI, FAST, FOXA, MNST, MSFT, VIP, EXPE, VOD

Lagging NDX stocks included: FFIV, WDC, MAT, GMCR, NFLX, PCLN, CTRX, SNDK, TRIP, VRTX

Leading stocks > +2% on Tuesday included:

Lagging stocks < -2.0% included: KNDI, TSL, LOCO, GOGO, JASO, CSIQ, SUNE, SCTY, P, SPWR, Z, FEYE

Stocks to Watch on Wedesday

Holding Above 30 DMA= 43

CHRW, BIDU, INTC, WDC, SYMC, GILD, SBAC, NTAP, EBAY, COST, FB, BBBY, CERN, EXPE, REGN, AMGN, CTXS, FFIV, PCLN, ISRG, YHOO, SPLS, ESRX, DLTR, TSLA, FOXA, MSFT, NFLX, ADP, CTRX, DISCA, MNST, NVDA, ORLY, ROST, TSCO, WFM, AAPL, ATVI, CHKP, INTU, MAR, PAYX

Moving Above 30 DMA = 2

BIIB, EQIX

Moving Below 30 DMA = 3

FISV, SIAL, SIRI                                                                                           

Staying Below 30 DMA

SRCL, DTV, AKAM, ALXN, CHTR, CMCSA, CSCO, GOOG, LMCA,SBUX, VOD, VRTX, ADBE, MDLZ, VRSK, EXPD, PCAR, MU, MYL, ADSK, AMZN, HSIC, KLAC, LINTA, AVGO, DISH, ILMN, QCOM, TRIP, ALTR, GMCR, KRFT, LLTC, NXPI, TXN, VIAB, XLNX, AMAT, LBTYA, VIP, SNDK, MAT, ADI, GRMN, FAST, MXIM,

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Up