SPY Falls to Support as Financial and Solar Stocks Sizzle...

All nine sectors moved lower on Friday…XLF, XLY and XLI were the strongest sectors…XLU was the weakest sector. 

Breadth weakened as decliners led advancers 3.86 to 1 on the NYSE and 2.08 to 1 on the NASDAQ.

Friday – weakened, decliners led

Thursday – strengthened, advancer led

Wednesday – strengthened, advancers led

Tuesday – weakened, decliners led

Monday - mixed

SPY down 1.17 at 199.13 on 117.4 million shares, above average volume

VIX up .51 at 13.31…

TNX up .83 at 26.14…

TLT down 1.20 at 113.38...

XLF down .02 at 23.39 on 34.9 million shares

AAPL up .23 at 101.66 on 62.6 million shares

FB down .44 at 77.48…on 26.7 million shares, the fifth time in six days closing  above 77

Technical Commentary:

DIA -0.36%, QQQ -0.51%, SPY -0.58%, IWM -1.06%.

Stocks sold off on Friday moving back to Tuesday’s lows.  For the week SPY -1%, IWM -0.86% and QQQ -0.46% from the previous Friday close. Indexes are at short term support with both SPY and QQQ just above previous horizontal resistance, which is acting as new short-term support.

The Market Forecast green line is pointed down at 84.  If SPY breaks support, look for the MF green line to break 80 and that would mean a short-term defensive posture.  Be prepared.

Due to the FOMC announcement on Wednesday afternoon, many commentators are speculating that stocks may drift ahead of the announcement, just in case the Fed announces an intent to raise rates sooner than currently expected.  Since no one really knows just trade the charts.

Financial stocks had a strong day on Friday with ETFC, SCHW, GS, MS, BAC, C, JPM, WFC, ZION and RF among others that rose as interest rates jumped.  TNX gapped up to close at 26.14, its highest close in over two months.

Solar stocks also had a strong day as SCTY, TSL, JASO, CSIQ, FSLR and SPWR moved higher.

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 = 200.00, 201.37, 204.32...

QQQ = 99.75, 101.13…

IWM = 115.73, 117.06, 118.76...

Support Levels

SPY = 197.59, 196.24, 195.16...

QQQ = 99.08, 97.99, 97.51…

IWM = 115.51, 114.31, 113.49...

Earnings this Week:

Q2 Earnings Reactions

Positive Reactions – LULU, PANW, ULTA, MFRM, SPLK, AVGO, CRM, GPS, TFM, FL, AMAT, CSIQ, GME, HPQ, PCLN, NTES, ROST, SINA, 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% - ULTA, LULU, PANW, MFRM, SPLK, TWTR, CMG, BIDU, BIIB, ISRG, LNKD, OSTK, SWI, SFUN, SSYS, SUNE, UA, VRSN, X

Negative Reactions – KKD, CIEN, BBY, QIHU, TSL,  ADSK, CREE, GOGO, JASO, JDSU, JWN, M, RAX, YOKU, 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 – AET, AKAM, ALXN, AMZN, ATI, EA, GIS, GRMN, ILMN, KO, KRFT, LNG, P, RYL, STX, TPX, VRTX,

Reversal of Initial Reaction – KKD, BBY, TSL, BBBY, BZH, BBBY, CELG, DNKN, ETFC, KLAC, NFLX, RAX, SLCA, UPL, YELP, YHOO, APOL, KBH, MON,

The SPY Market Forecast green line is at 84.

____________________

Setups

Horizontal Breakout: BBRY, C, CSIQ, FSLR, JASO, JCP, KKD, MS, SPLK, TSL, X, ZION, FB, FFIV, TRIP,

Diagonal Breakout: SPY, AIG, ATI, IBM, NTES, SWKS, UPL, ESRX, EXPE, GILD, GMCR, MNST, WDC,

Bull Flag: AA, CAR, CRM, CTRP, FAS, GLW, GME, HPQ, JDSU, LNKD, MBLY, MFRM, NKE, RAX, SPWR, TPX, TWTR, UA, UAL, YELP, YY, AVGO, BIDU, BRCM, CELG, COST, GOOGL, ILMN, ROST, SNDK, STX, TSLA, TXN,

Potential Bullish Divergence: 

Gap Up:

Gap Down:

Bear Flag: GRMN,

At Support: BX

C- Pattern: 

Moves

New Highs: BAC, BBY, GPRO, SCHW, AKAM, CMCSA, NTAP, YHOO,

H Breakout: BBY, ETFC, LOCO, SCHW, SCTY,

D Breakout:

Bull Flag Bounce: CSIQ, FSLR, JASO, TSL, YNDX, TRIP,

Gap Up: ULTA,

Gap Down:

Bounce:

MACD Divergence Bounce:

C- Pattern:  

Bear Flag:

Support Break: Z, SBUX

______________________

19 of 100 NDX stocks closed higher on Friday.

Leading NDX 100 stocks included: YHOO, SPLS, EBAY, ISRG, CHKP, GRMN, TRIP, VIP, DLTR, CHRW

Lagging NDX stocks included: AMAT, GILD, ALXN, ILMN, ATVI, ADBE, WYNN, NXPI, DISCA, MU

Leading stocks > +2% on Friday included: LOCO, SCTY, TSL, BBY, JASO

Lagging stocks < -2.0% included: UBNT, MBLY, CRM, SCSS, FEYE, SPLK, YOKU, ATI, SFUN

Stocks to Watch on Monday

Holding Above 30 DMA= 71

INTC, SYMC, GILD, SBAC, NTAP, COST, FB, BBBY, CERN, EXPE, REGN, AMGN, CTXS, FFIV, ISRG, YHOO, ESRX, TSLA, FOXA, MSFT, NFLX, ADP, CTRX, MNST, NVDA, ROST, ATVI, CHKP, MAR, PAYX, EQIX, CELG, FISV, SIAL, SIRI, VRSK, AKAM, AVGO, DISH, KLAC, LMCA, ORLY, STX, VIP, ALTR, AMAT, BRCM, TXN, ADBE, ILMN, LINTA, FAST, NXPI, SNDK, GMCR, AMZN, CMCSA, DTV, KRFT, VRTX, SPLS, XLNX, CA, CHTR, DLTR, EXPD, QCOM, INTU, SBUX, AAPL, CSCO, TRIP, LBTYA

Moving Above 30 DMA = 0

                                               

Moving Below 30 DMA = 8

ADSK, ALXN, BIDU, GOOG, LLTC, MU, MXIM, MYL

                                                                                             

Staying Below 30 DMA

HSIC, SIAL, WFM, CHRW, EBAY, SBUX, SRCL, TSCO, DISCA, MAT, ADI, VOD, BIIB, WDC, GRMN, PCLN, PCAR, CTSH, WYNN, MDLZ, VIAB

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Neutral