Seven out of 9 sectors moved higher Friday…
XLP, XLU and XLV were the
strongest sectors…XLK was the
weakest sector on the first day of summer and triple-witching expiration Friday.
Breadth strengthened…advancers
led decliners…1.00 to 1 on the NYSE and
1.44 to 1 on
the NASDAQ…
Friday
– strengthened, advancers led
Thursday weakened,
decliners led
Wednesday – weakened,
decliners led
Tuesday – strengthened,
advancers led
Monday – strengthened,
advancers led
SPY
up .51…volume 271.9 million shares
VIX
down 1.59 at 18.90…
TNX
up .95 at 25.14…
TLT
down 1.87 at 108.40...
XLF
up .02 at 19.11…volume 85.6 million shares
AAPL
down 3.34 at 413.50…volume 17.1 million shares
FB
up .63 at 24.53…volume 45.8 million shares
Technical Commentary:
SPY + 0.32%, IWM + 0.30%, DIA + 0.31%, QQQ – 0.52%.
Stock futures rallied Thursday night, opened higher, pulled
back to its weekly low at 157.47 before settling into a trading on expiration
Friday. The SPY formed a hammer and bullish harami
pattern in a lower low potential MACD histogram bullish divergence. Potential bullish entry is above Friday’s
potentially bullish hammer candle pattern.
The SPY lost -3.32% for the week, its largest weekly loss in 2013. The SPY did find support at least for
Friday at its 61.8% Fib level off its April 18 low.
Bottom line institutions on balance reacted this week as if they were negatively surprised
by the Feds forward look on potential future tapering.
If the SPY does bounce above Friday’s high look for a short-term target at 161.84.
Weakness in AAPL, GOOG, PCLN and
NFLX kept the NDX in negative territory on Friday.
The Euro was dropped 104 pips to
close at 1.3121, its 50% Fib
retracement level from its May 16 low. TNX interest rates jumped again
to its highest close since Aug 3, 2011. TLT bonds -1.69% moved
significantly lower.
ADBE -0.28% formed a
hammer in day three of a bull gap earnings flag after reporting earnings after
the close Tuesday.
ZION +1.64% gave a
diagonal bullish breakout on Friday after rising on Thursday.
FB up 63 cents is a
horizontal breakout setup above 24.95 entry with a price target of 27.23 if a
breakout occurs. FB announced on
Thursday it was adding 15 second video to its Instagram service which is
believed to have the potential to generate significant revenue for the company.
GRPN +5.44% is a
potential horizontal bullish breakout while RAX +5.92% and CRM +4.22% are
forming potential reversal patterns.
MU up 36 cents bounced following a one day pullback after reporting
positive earnings after the close on Wednesday.
Trade what you see on the chart of your position. The multi-month intermediate term trend is up,
the four-week trend is down and the ten-day short-term trend is down at potential support. Chart Signals reiterates our Wednesday night guidance…Adjust
stops, trade to targets and take bearish
trades according to your rules as
the month long consolidation continues.
A few bullish setups did appear on Friday and as always follow your
rules.
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 – MU, 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 down.
____________________
Setups
H Breakout: XONE,
Diagonal Breakout: GRMN, MU, SYMC, WFM, BBRY, CMG, FIVE, MFRM,
RAX, SPLK, STI, UNG, WLT, Z,
Bull Flag: ADBE, AMAT, AMGN, BBBY, CSCO, GOOG, INTC, MNST,
MYL, NTAP, NVDA, PCLN, SBUX, SNDK, STX, WDC, CIEN, CREE, GMCR, GS, NFLX, PWRD, SCSS,
YELP,
Potential Bullish Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support: BRCM, CELG, CTSH, DTV, FFIV, MAT, NUAN, ROST,
TXN, CLF, CNX, ESI, LVS, SOHU, SWI, TPX, UAL,
Moves
New Highs: ANGI, GRPN,TBT,
Gap Up:
Gap Down: ORCL,
H&D Breakout: CRM, ZION,
Breakout Test:
Bounce: AMGN, CMCSA, ESRX,
MACD Divergence Bounce:
Bear Flag:
Support Break: ADSK, QCOM,
SIRI, YHOO, DDD,
______________________
54 of 100 NDX stocks closed higher on Friday…
Leading NDX 100 stocks included:
DTV, MU, FB, CMCSA, AMGN, MXIM, MDLZ, GOLD, LBTYA, GRMN, LLTC, PAYX,
DISCA, ESRX, ADI, XLNX
Lagging NDX stocks included:
ORCL, SIRI, NFLX, ATVI, FOSL, WDC, CTXS, FFIV, REGN, WYNN, EXPE, LMCA,
STX, AKAM
Leading stocks > +2% on Friday included: GRPN, CRM, LDK, CHL, TBT, CSTR, URE,
TSL, CDE
Lagging stocks < -2.0% included: SGOC, ESI, GMCR, SSYS, ZAGG, DECK, UAL,
VMW, CREE, LVS, SOHU, UCO, AKS, ANR, C, JNPR, CLF, NTES
Stocks to Watch on Monday
Holding Above 30 DMA= 14
LIFE, PCLN, MU, NTAP, SPLS, AVGO,
CSCO, ISRG, AMZN, SBUX, BBBY, EXPE, ORLY, ADBE
Moving Above 30 DMA = 0
Moving Below 30 DMA = 4
GOOG, SNDK, STX, LMCA
Staying Below 30 DMA
AMAT, CA, DELL, DLTR, ESRX, GOSL,
HSIC, INTC, KLAC, MCHP, MYL, NVDA, PCAR, WFM, XLNX, ADI, CTRX, WDC, NFLX, ADP,
CERN, CHKP, CHRW, COST, DTV, EXPD, FISV, GRMN, LINTA, NUAN, ORCL, PAYX, ROST,
SRCL, VOD, WYNN, YHOO, MDLZ, DISCA, VRSK, DRFT, BIDU, VRTX, GOLD, SIAL, TXN,
BIIB, CTSH, INTU, SIRI, VIAB LBTYA, REGN, AAPL, ALTR, FAST, LLTC, NWSA, AKAM,
BMC, FFIV, XRAY, BRCM, CELG, GILD, ALXN, ATVI, CTXS, EBAY, MAT, CMCSA, SHLD,
SBAC, QCOM, EEEEQIX, ADSK, AMGN, SYMC, MXIM, FB
Four-Week Intermediate Term Market Trend: Down
Ten-day Short Term Market Trend: Down
