SPX New High Close as Energy and Materials Stock Lead...

The SPX formed a white candle and made a new high close one point higher that its high on January 18 to close +5.45 at 1,296.63 on Wednesday.

(click image to enlarge)

SPX white candle confirmed hammer closed at resistance

INDU spinning top did not confirm potential hanging man, new high close

COMPQ white candle bounce in bull flag

RUT large white candle support bounce closes above 30 DMA

Breadth strengthened on Wednesday as advancers led decliners 2.25 to 1 on the NYSE and 3.08 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      2,098             2,016

Decliners           929                654

(click image to enlarge)

Index              Chg.    Close    Direction      Confirmation

VIX                 -0.95       16.64    Down             Yes – SPX

SOX              +3.82     442.94    Up                  Yes – COMPQ

Leading stocks > 1% on Wednesday included ATI, PCX, TIE, CLF, WLT, JEC, UAL, JNPR, SLW, CAM, RVBD, AKS, SLB, SWKS, SOHU, FWLT, IPI, MOS, ARUN, X, FCX, POT, CRM, SWN, UCO, CF, SNDK, ATW, TBT, GLW, F, NVDA, LVS, DECK, VECO, AGU, DE, NETL, GMCR, VMW, CAT, HANS, CAN, UNP, WHR, HUM, NTES  

Losing stocks < -1% included TSL, BA, LDK, MCP, HSY, CMG, DISH, DLR, TLT, MHS, ZION

Positives – SPX, VIX, NDX, SOX, TNX, AAPL, BIDU, breadth and sector strength, Euro, XLV, XLP, XLU were lagging sectors

Negatives – AMZN, GOOG, NFLX, PCLN

Interest rates rose on Wednesday and bond ETF TLT closed down -1.40.  The Euro moved up 31 pips to 1.3712 at 5 pm ET. 

Five of nine sectors rose on Wednesday with Energy XLE +2.40% and Materials XLB +2.12% leading all sectors.

Earnings

Wed – AMZN, MSFT, SNDK, KLAC, MMM, PG, T, F, RVBD, CRUS, GMCR, BMC, PCP, UAL

Thu – BA, CAT, CTXS, LRCX, NFLX, QCOM, SWK, UTX

Moves on Wednesday

Continuation – GLW, IBM, XLNX

Resistance Breakout – FLIR, INTC, ACN, NVDA

Bull Flag Bounce – WLT, CLF, JOYG, SLB, BIDU, WYNN, GILD, CTRP, NTAP, ADSK, FLEX, WFT, OIH, NOV, TIE, PCX, FWLT, SWKS, HUM, F, PNC, SINA, MCP, GM, A, LLTC, FAS

MACD Divergence Bounce – GME

Setup Charts to Watch on Thursday

Bull Flag Setups – HPQ, SNDK, DISH, HSY, MS, LDK, NYX, ESI, UNP, UNG, BK, SID, MHS, AMD

Breakout Setups – NVDA, TIE, HANS, DE, SMH, DTV, NDAQ, MYL

MACD Divergence – DECK, GES, HAS, NKE, HNZ

SPX

Resistance: 1,300

Support: 1,281, 1,256, 1,241

The short term 3 day trend is neutral.
The six-month trend is up.
The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

 

AAPL +2.45 – large white candle, support bounce continuation in bull flag

AMZN -1.31 – spinning top inside day, earnings on Wednesday

NFLX -3.71 – white candle confirms Monday’s piercing line, close above high of low day

QCOM +0.34 – hammer in bull flag

GOOG -3.41 – bullish engulfing pattern confirms Monday’s hammer

BIDU +2.06 – white candle does NOT confirm Monday’s long tailed hammer

NDX 100 stocks stronger than the NDX include GILD, JOYG, WYNN, TEVA, SNDK, NTAP, CTRP, LRCX, CTXS, NVDA, ISRG, KLAC, BIDU, NIHD and FLIR.

Stocks weaker than the NDX: CA, SPLS, ALTR, YHOO, ADP, NFLX, SBUX, EXPE, PCLN, SHLD, AMGN, VRTX, HSIC, WFMI and AMZN.

Stocks to Watch on Thursday
Holding Above 30 DMA
SINA, NDAQ, SMH, FWLT, PCX, CLF, CRUS, HOLX, A, DE, FAS, GLW, JEC,  ACN, NYX, ATI, URE, POT, BA, SWN, UNG, TSL, DLR, GMCR, HANS, HUM, HSY, LDK, NTES, CAM,  SLB, TIE, SKX, MA, SPG, ESI, STI, CAT, DHR, DOW, FDX, LXK, MOS, NETL, PCP, VECO, AIV, SOHU, SWKS, X

Moving Above 30 DMA = 13

AGU, AKS, ATW, CF, IPI, JNPR, PNC, SWK, TBT, UAL, UNP, WHR, WLT

Moving Below 30 DMA = 3

MHS, TLT, V

Staying Below 30 DMA
BAC, CHL, MCP, ZION, ARUN, CMG, CRM, RVBD, SNDK, UCO, VMW, FCX, GS, LVS, DECK, AMD, HLF, CREE, GME, ICE, SLW, GES, HAS, CSTR, MCD, FAZ

Added: JNPR, SLW

Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral