SPX Inches to 51st 2014 All-time High...Financials New High as TLT Breaks Support...ESRX, CAR Breakout on Rising Volume...

Eight of nine sectors moved higher on Tuesday…XLE, XLB and XLP were the strongest sectors and XLV was the weakest.

 

Breadth strengthened on the NYSE as advancers led decliners…1.83 to 1 on the NYSE and 1.04 to 1 on the NASDAQ.

Tuesday – mixed, advancers led

Monday – strengthened, advancers led

Friday – weakened, advancers led

Thursday – weakened slightly, advancers led

Wednesday – strengthened, advancers led

SPY up .28 at 207.75 on 122 million shares

VIX down .45 at 14.80…

TNX up .95 at 22.57…

TLT down 2.50 at 123.54...

XLF up .14 at 24.99 on 15.5 million shares

AAPL down .40 at 112.54 on 45.1 million shares

FB down .84 at 80.61…on 31.7 million shares

Technical Commentary:

DIA +0.37%, IWM +0.13%, SPY +0.13%, QQQ -0.35%.

The SPX hit a new all-time high for the 51^st time in 2014.  The SPX was led by gains in CHK, ESRX, CF, WAG, TIF, CVC, WYNN, NFX, BWA and MAT.

Oil was up 46 cents to 55.84.  XLE was the leading sector rising 97 cents, +1.22% to close at 80.72.

Volume rose in XLB, XLF, XLK, XLP, XLV, XLY and IWM and declined in XLE, XLI, XLU, DIA, SPY and QQQ headed into Wednesday’s half day of trading on Christmas Eve and the Christmas holiday on Thursday. 

XLV fell for the second straight day on heavier volume as biotech and other healthcare stocks continued to be under selling pressure.  CELG, ALXN, BIIB, REGN, AMGN, GILD, ILMN and VRTX were the eight largest losers on the NDX.

Gains in MSFT, ESRX, GOOG, CMCSA and INTC helped offset in part the NDX losses in biotech stocks.  The NDX formed a dark cloud cover.

CAR +5.83, +9.94% broke out of horizontal resistance.  Four-week Chart Target: 71.64

ESRX +3.54, +4.31% broke out of horizontal resistance by 16 cents.  Four-week Chart Target: 92.55

Look for new high horizontal breakout setups in stocks that are up trending or reversal breakouts from stocks that recently pulled back.

AAL, EA and LRCX were added to the NDX on Monday.

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 Chart Targets:

SPY = 207.33, 209.06, 210.49...

QQQ = 106.94…

IWM = 118.25, 119.37, 121.27…

Support Levels

SPY = 200.06...

QQQ = 102.42, 101.38…

IWM = 114.37, 113.35...

Q3 Earnings Reaction

Positive Reactions – ADBE, CIEN, LULU, AVGO, ADI, HPQ, PANW, QIHU, ADSK, JASO, ROST, SPLK, GOGO, RAX, NTES, XONE, YOKU, VJET, BABA, MNST, WFM, ABC, ACI, AMGN, BIDU, BWLD, CBOE, CLF, CLX, CNX, EA, ESRX, EQIX, EXPE, FISV, GLW, GPRO, GRPN, GT, HSY, JCI, JDSU, LNKD, LVLT, MA, MAR, MO, MTW, MYL, PCAR, FE, SCHN, STX, SWI, SWKS, TASR, V, WY, X, WHR,  AAPL, ALK, ALXN, APOL, BMY, BRCM, CAT, CELG, CERN, CHKP, CMCSA, CNI, EMC, EW, GD, HAL, HAS, HOG, ILMN, IM, KLAC, KMB, LLY, LRCX, LXK, MMM, MXIM, MSFT, N, ORLY, PG, RMD, STLD, STT, SWK, TRV, TSCO, TXN, UNP, VRSN, WOOF, YHOO, YNDX, ZION, AMD, C, CSX, DAL, GE, HON, LVS, MS, SCHW, SLB, STI, URI, XLNX, COST, BBBY, BBRY, MU, NKE, PAYX, LULU, PANW, ULTA, MFRM, SPLK,

More than 10% - GOGO, RAX, WFM, GPRO, GPRN, LNKD, BWLD, SWI, N, EW, TSCO, NKE, ULTA, LULU, PANW, MFRM,

Negative Reactions – COST, AMBA, MFRM, GME, CRM, JD, MBLY, SINA, YY, SWKS, FEYE, FSLR, PCLN, QCOM, TRIP, SCTY, SSYS, SUNE, UBNT, Z, ZU, AEM, CHRW, COH, FB, GRMN, KRFT, MDC, MRK, NEM, PNRA, RGR, SLCA, TPX, TWTR, ALTR, AMZN, BA, BTU, CMG, CREE, DECK, DNKN, DOW, EAT, F, GM, IBM, JNPR, KO, LMT, LUV, NDAQ, P, UA, VMW, XRX, YELP, AXP, BAC, COF, EBAY, GOOGL, INTC, JNJ, JPM, KEY, MAT, NFLX, WFC, AZO, ADBE, KKD, CIEN,

More than -10% - GME, CSIQ, FSLR, UBNT, ZU, AEM, P, TPX,

Reversal in progress – PCLN, TPX, KO,

Reversal of Initial Reaction – AMZN, FEYE, SWKS, Z, ADBE, ALTR, ALTR, AXP, AZO, BA, BAC, BTU, CHRW, CMG, COF, COH, CREE, DECK, DNKN, DOW, EAT, EBAY, F, GM, GOGO, GOOGL, GRMN, INTC, JNJ, JNPR, JPM, KEY, KKD, KO, KRFT, LMT, LUV, MAT, MDC, MRK, NDAQ, PNRA, UA, VMW, WFC, XRX,

The SPY Market Forecast is at 61.

___________________

Setups

Horizontal Breakout: AAL, ATI, BAC, BBRY, BBY, CTRP, DAL, EMC, ETFC, FAS, FEYE, GOGO, IBM, JCP, LNKD, RAX, SCHW, SPWR, SUNE, TWTR, V, YELP, ZION,

ESI, ZNGA, AKAM, AVGO, BRCM, COST, EBAY, ESRX, GMCR, GOOGL, INTC, MAR, MNST, MSFT, NFLX, NTAP, QCOM, SBUX, TRIP, WFM,   

Diagonal Breakout: LC, MBLY, MYL,

Bull Flag: BX, UBNT,

Bear Flag: HOG, MFRM, TSL,

At Support: CMGE,  

C- Pattern: CREE, KKD, SPLK, AAPL, BIDU,

Moves

New Highs: DIA, SPY, IWM, FAS, CIEN, GLW, HPQ, JNPR, MS, RCL, STI, ROST, STX,    

H Breakout: AIG, CAR, CRM, GPRO, MTW, SCHW, SCTY, CMCSA,      

Breakout Test: FB,  

Bounce: JCP,    

MACD Divergence Bounce: CSIQ,

C- Pattern: ADSK,

Support Break: TLT, XONE, CELG, GILD,

______________________

53 out of 100 NDX stocks closed higher and two were unchanged on Tuesday.

Leading NDX 100 stocks included: ESRX, VIP, WYNN, MAT, CTRX, SPLS, SYMC, CHTR, CTXS, TSCO

Lagging NDX stocks included: CELG, ALXN, BIIB, REGN, AMGN, GILD, ILMN, VRTX, GMCR, YHOO

Leading stocks > +2% on Tuesday: CAR, GPRO, MTW, JCP, SCTY, ATI, SCHW,

Lagging stocks < -2.0% included: CMGE, XONE, BABA, LC, Z, GOGO, DGLY, UAL, NTES, TWTR

Stocks to Watch on Wednesday

Holding Above 30 DMA = 72

ROST, DLTR, ORLY, TSCO, AAL, BBBY, PCAR, SPLS, INTU, EA, AMAT, WFM, AVGO, WDC, ADI, ALTR, EBAY, LLTC, FOXA, SIAL, BIIB, ADBE, ADP, CHKP, CHTR, CMCSA, CSCO, DISCA, EQIX, FAST, FB, HSIC, INTC, KLAC, KRFT, LBTYA, LVNTA, MNST, NXPI, QCOM, STX, TRIP, TXN, VIAB, VRSK, AKAM, BRCM, CA, CERN, CHRW, COST, CTSH, DISH, FISV, ISRG, LRCX, MAR, MU, MYL, NTAP, SRCL, SYMC, ADSK, CTRX, NVDA, SNDK, DTV, ESRX, EXPD, MSFT, PCLN, SBUX

Moving Above 30 DMA = 2

CTXS, PAYX

Moving Below 30 DMA = 7

AMGN, CELG, ILMN, REGN, VOD, VRTX, YHOO                          

Staying Below 30 DMA

GILD, MAT, XLNX, MDLZ, AAPL, ALXN, ATVI, SBAC, AMZN, LMCA, SIRI, GRMN, BIDU, GOOG, TSLA, VIP, GMCR, WYNN, NFLX

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up