Chart Signals
is grateful for the blessings, bounty and freedoms that we enjoy in
America. Thank you to all of those who
have served and sacrificed to establish and preserve freedom in the United
States of America. May everyone have an
incredible and safe Fourth of July!
Four of nine sectors moved higher on
Wednesday… XLK, XLY and XLI were
the strongest sectors…XLU was the
weakest sector.
Breadth strengthened
slightly…decliners led advancers…1.55 to
1 on the NYSE and strengthened
…advancers led decliners 1.31 to 1 on the NASDAQ…
Wednesday
- mixed
Tuesday – weakened,
decliners led
Monday – strengthened,
advancers led
Friday – weakened,
advancers led
Thursday – strengthened,
advancers led
SPY
up .07…volume 75.2 million shares
VIX
down .24 at 16.20…
TNX
up .32 at 25.01…
TLT
down .33 at 110.01...
XLF
down .06 at 19.47…volume 25 million shares
AAPL up 2.31 at 420.80…volume
8.6 million shares
FB
up .11 at 24.52…volume 10.4 million shares
Technical Commentary:
QQQ + 0.41%, DIA + 0.41%, IWM
+ 0.20%, SPY +
0.04%.
The SPX traded in a
modest range of 14 points and a weekly range of 22 points headed
into the Fourth of July Holiday. The
SPX which opened lower traded down as many as 10 points from
Tuesday’s close before rallying 15 points with a close at 1,615. The SPY traded 75.2 million shares for
the half-day trading session. The SPX
and SPY are holding right below their 30 DMA.
The past five days
consolidation suggests a pause before continuing to move higher towards
resistance of SPX 1,675 and SPY 167.
The unofficial start of earnings season is Monday, July 8 with AA reporting
earnings after the close.
CMG gapped up
to break horizontal resistance of mid-May closing up 12.94 or 3.48% on
higher volume.
UCO gapped
higher also breaking horizontal resistance of mid-June. It was up 1.21 or 3.80%.
MJN gapped
down a second day after receiving a downgrade from analysts closing down
6.05 or 8.08%.
UCO also
gapped up breaking horizontal resistance the previous day closing at 33.09
up 1.21 or 3.80%.
Chart Signals Strategy Guidelines
When the market
is trending up Chart Signals looks
for support bounce and resistance breakout entries.
When the market
is trending down Chart signals looks
for resistance pull back and support break entries.
When the market
is sideways in consolidation Chart Signals
will look for support bounce, diagonal breakouts and pull backs
at resistance where price action stays between support and resistance.
Technical setups for
short-term option trades be in and out by earnings release.
Over earnings release use earnings option strategies such as straddles, strangles, OTM calls
or puts.
After earnings look for
bullish setups in positive reaction stocks and bearish setups in negative
reaction stocks.
EPS Reaction Summary
EPS Gainers – ADBE, ULTA, EA, DVA, WFM, CTSH, DTV, LBTYA, AIG,
ADP, CBOE, REGN, FB, BZH, EXPD, GM, MDC, STX, V, YELP, ICE, JRCC,
VIAB, CMCSA, DDD, AVP, HLF, CERN, CVX, DHI, TWC, ANGI,
AKAM, ALXN, ALTR, BIIB, COG, CLF, CROX, DOW, ESI, FFIV, HOG, LRCX, LVS, MO,
PHM, RCL, SIAL, XLNX, BA, BRCM, GLW, HES, DAL, COH, DD, NFLX,
ILMN, VECO, LCC, RF, ZION, TRV, LMT, CAT, CHKP, HAL, HAS, CMG, GOOG,
KMB, STI, MSFT, BTU, PEP, UNP, VZ, MAT, AXP, JNJ, INTC, KO, C, APOL
EPS Losers – ORCL, CPRT,
COST, TSL, CRM, GME, SHLD, DISH, XRAY, ATVI, RAX,
MNST, Z, LNKD, TPX, ZAGG, CTRX, GRMN, MRK, SWI, AMZN,
BIDU, CRUS, DECK, EXPE, HSY, KLAC, MXIM, QCOM, PTEN, ABC, MMM, AMGN,
T, JNPR, PNRA, VMW, GE, IBM, ISRG, MCD, MS, PM, UNH, SNDK, EBAY, BAC,
USB, GS, LLTC
The Market Forecast Green Line is
below the Upper Zone and is pointed up.
____________________
Setups
H Breakout: ADBE,
BBBY, CELG, CSCO, GOOG, WDC, WFM, ANGI,
Diagonal Breakout: AAPL, BRCM, CTSH, NFLX, TXN, XLNX, BAC,
DDD, NFLX, SPY, SWI, VECO,
Bull Flag: GRMN,
MNST, STX, MFRM, SCSS,
Potential Bullish Divergence: ADSK,
Gap Up:
Gap Down:
Bear Flag:
At Support: ADSK, AMGN, BIDU, INTC, MYL, ATI, GMCR, GS,
Moves
New Highs: AMZN,
SBUX, CREE, F, GME, GRPN, SPLK, STI, ZION,
Gap Up: CMG, UCO
Gap Down: RCL,
H&D Breakout: DTV,
Breakout Test:
Bounce: AMAT, ORCL, YHOO,
RAX,
MACD Divergence Bounce:
Bear Flag:
Support Break:
______________________
62 of 100 Leading NDX stocks closed higher on Wednesday…and two were unchanged.
Leading NDX 100 stocks included:
GOLD, DISCA, YHOO, ORCL, LBTYA, DTV, VRTX, VIAB, CTXS, FISV, AMAT, CSCO,
CMCSA
Lagging NDX stocks included:
SPLS, CTRX, BIDU, MU, FAST, NWSA, PCAR, FOSL, MDLZ
Leading stocks > +2% on Wednesday included: UCO, CMG, LNKD, GRPN
Lagging stocks < -2.0% included: X, CLF, ANR, LDK, TSLA, ESI
Stocks to Watch on Thursday
Holding Above 30 DMA= 54
MU, SPLS, AVGO, CSCO, ISRG, AMZN,
DLTR, ADBE, INTU, SBUX, BBBY, EXPE, GRMN, MCHP, PCLN, SNDK, SRCL, VRTX, ALTR,
CA, LINTA, MAT, MNST, ORLY, PCAR, ROST, STX, VOD, VIAB, FB, LBTYA, KRFT, LMCA,
CMCSA, GOOG, HSIC, DISCA, VRSK, ADP, ALXN, CHKP, CTSH, DTV, EBAY, FOSL, NTAP,
SYMC, WFM, WDC, NFLX, BMC, CELG, ESRX, SIRI
Moving Above 30 DMA = 4
FISV, LLTC, XLNX, ADI
Moving Below 30 DMA = 3
CERN, DELL, ISRG
Staying Below 30 DMA
EXPD, LIFE, MYL, COST, PAYX, AMAT,
INTC, KLAC, MSFT, NVDA, CTRX, CHRW, NUAN, ORCL, WYNN, YHOO, MDLZ, BIDU, GOLD,
SIAL, TXN, BIIB, REGN, AAPL, FAST, AKAM, FFIV, XRAY, BRCM, GILD, ATVI, CTXS,
SHLD, SBAC, QCOM, EQIX, ADSK, AMGN, MXIM, NWSA
Four-Week Intermediate Term Market Trend: Neutral
Short Term Market Trend: Up
