ISRG, AAPL Gap Higher as SPX Pauses...

Earnings reactions so far have been mixed.  AAPL, VMW, CSX, AMR, EMC and QCOM today opened higher and closed lower than their open and created a black candle.  RVBD -22.85% and YHOO -7.61% gapped lower.

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Financial stocks reaction has been more positive after earnings from JPM, BAC, WFC, STT, KEY, GS and ZION.  MS reports Thursday morning.  XLF was the strongest sector today and only one of three that had gains.

Semiconductor stocks NVLS, MU and today ALTR have all had negative reactions following earnings. 

INTC -0.44, -1.91%, down after the close, also reacted negatively to better than expected earnings.

STX -11.83% and WDC -5.46% are lower in after-hours trading following earnings after the close.

The SPX paused and formed a spinning top that stayed above Tuesday’s S1 to close down -0.89 at 1,325.84.

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SPX spinning top, above 30 DMA -0.07%

INDU spinning top, 30 DMA -0.12%

COMPQ dark cloud cover, above 30 DMA -0.43%

RUT spinning top, above 30 DMA -0.27%

Breadth weakened as advancers led decliners 1.25 to 1 on the NYSE and decliners led advancers 1.48 to 1 on the NASDAQ …

Exchange       NYSE        NASDAQ

Advancers      1,668           1,042  

Decliners        1,328           1,543

Index              Chg.     Close    Direction    Confirmation

VIX                 -0.12     19.09      Down          No – SPX

SOX                -2.30   395.11      Up              Yes – COMPQ

Leading stocks > +2% on Wednesday included CRUS, GS, CHL, SWKS, BAC, FAS, IAG, SLW, MHS, TBT

Losing stocks < -2.0% included RVBD, ARUN, FFIV, INFA, VECO, ESI, CRM, FAZ, CLF, ANR

Positives – VIX, TNX, XLF, AAPL, BIDU, QCOM, Euro

Negatives – COMPQ, NDX, TLT, AMZN, GOOG, NFLX, PCLN

Just three of nine sectors moved higher on Wednesday.  Financials XLF +1.14% and Utilities XLU +0.60% were the strongest sectors. 

Interest rates TNX closed +0.42, bond ETF TLT fell -1.15 and Financials XLF was rose 17 cents.  The Euro moved up 59 pips to close at 1.4214 at 5 pm on Wednesday.

SPX

Resistance: 1,321, 1,330, 1,344

Support: 1,310, 1300, 1,288

The short term 3 day trend is neutral.

The six-month trend is neutral.

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 +10.05 – black gap up, new high close, above 30 DMA

AMZN -2.51 –dark cloud cover at resistance, above 30 DMA

BIDU +2.43 – potential shooting star, above 30 DMA

GOOG -7.20 – small bearish engulfing, above 30 DMA

NFLX -5.89 – hammer like, bull flag setup, above 30 DMA

PCLN -7.55 – dark cloud cover, above 30 DMA

QCOM +0.32 –black gap up, above 30 DMA

NDX 100 stocks stronger than the NDX include ISRG, AAPL, BIDU, ESRX, ILMN, BRCM, MU, CSCO, NWSA and VOD.

Stocks weaker than the NDX include YHOO, ALTR, FFIV, NTAP, SYMC, BMC, CTXS, BIIB, INTU and SHLD.

Stocks to Watch on Thursday

Holding Above 30 DMA

TIF, KKD, CROX, GMCR, TPX, AGU, CMG, CRM, HLF, VMW, ATW, NGLS, CLF, ESI, ACN, CSTR, FFIV, ICE, POT, AKS, CAM, CAT, COH, CRUS, DECK, DLR, FCX, LVS, NKE, NTES, PCX, SLB, WDC, SWN, URE, V, SINA, SOHU, WTW, ANF, CDE, SLW, CF, IAG, ANR, ATI, MOS, UNG, DLR, WLT, CHL, CY, DHR, JNPR, MCP, NETL, TLT, UCO

Moving Above 30 DMA = 2

MHS, SWKS

Moving Below 30 DMA = 3

ARUN, FAZ, RVBD

Staying Below 30 DMA

HUM, TBT, ENTR, ZION, DE, INFA, SWK, X, SMH, A, DOW, F, FAS, GES, HAS, NDAQ, SNDK, GS, STI, LDK, BAC, TSL, UAL, UNG, VECO, CREE, NVDA, FWLT, JDSU, GLW, CIEN, IL

Intermediate Term Market Trend: Neutral

Short Term Market Trend: Neutral