SPY, DIA Pause Hold Above Breakout and Friday's S1 Level...

Four of nine sectors moved higher on Monday.  XLV, XLI, and XLK were the strongest sectors.

The SPY +0.00%, holds above horizontal resistance on light volume, modest profit taking, closing near its open and trading above the S1 level of  Friday’s large white candle.

CRUS, FISV and HLF gapped higher in after-hours trading following earnings release on Monday.  STX gapped lower following earnings. 

FOMC meeting Tuesday and Wednesday, ECB meeting Thursday and Jobs Report and the Unemployment report are released on Friday.

Breadth weakened as decliners led advancers 1.04 to 1 on the NYSE and 1.76 to 1 on the NASDAQ.

Exchange      NYSE    NASDAQ

Advancers     1,467          884

Decliners       1,529        1,563

The SPX moved down -0.67 at 1,385.30 closing above its 30 DMA and above the 75% level of its April - July trading range of 1,422 – 1,266. 

Chart Patterns

Breakout: CRUS, MCHP, DHR, V

Breakout Continuation: CIEN, SHW, EXPE, CL, KLAC, HAL, ETN, T, S, BRCM, VMED, AEM, AKAM, SWI, WDC, EXPE, KMB

Breakout Pullback: JNPR, JDSU, HLF, COH, SWK, GS, ALGN, COST, MTW, INFA, BIDU, ALTR, BIIB, LMT, PNRA, BA,

Breakout Setup: EBAY, VMW, AMZN, AVGO, FISV, ADSK, FAS, GES, C, CREE, ANF, SMH, URE, MOS, IBM, ICE, LLTC, NSC, WHR, CAT, POT, VECO, HSY,

Earnings of Interest Week July 30 – Aug 3

Monday: CRUS, FISV, HLF, STX,

Tuesday: ADM, BMC, COH, XRAY, DB, FMC, KLIC, LIFE, MDC, VLO,

Wednesday: ICE, MA, WTW, YELP,

Thursday: ATVI, AIG, AVD, APA, DTV, HSIC, KFT, LBTYA, LNKD, MELI, MCHP, UPL, ZAGG,

Friday: AGU, NYX, BID,

Technical Commentary:

SPY and DIA traded above horizontal resistance and QQQ closed at horizontal resistance with a potential breakout setup.  Monday’s price action did pause as we alerted you to watch for on Friday. 

The Euro, interest rates and financial stocks closed lower while the VIX and bonds moved higher.

Monday Highlights:

SPY closes unchanged at 138.68 on 106.8 million shares light profit taking following the heaviest rising volume day in 2012 on Friday, closed above 30 DMA for the third straight day.

The Euro moved down 54 pips, closed at 1.2262

TNX -0.51 at 15.04

VIX up +1.33 at 18.03

XLF down -3 cents at 14.73

AAPL up +9.87 at 595.03 on 16.5 million shares...

FB down -55 cents at 23.15 on volume of 29.3 million shares

KYAK up +51 cents, +1.54% at 33.65 on .164 million shares

FIVE +16 cents at 29./1 on .260 million shares…

The Market Forecast green line is pointed up.

28 of 100 NDX stocks closed higher on Monday…

Leading NDX 100 stocks included EXPE, PCLN, FOSL, AMZN, GILD, VRSN, RIMM, AMGN, PCAR, MU

Lagging NDX stocks included SBUX, CA, CERN, WFM, LRCX, BMC, STX

Leading stocks > +2% on Monday included ZAGG, CRUS, LVS

Losing stocks < -2.0% included TSL, GRPN, ESI, TSLA, TPX, LDK, CSTR, CRM, DECK, INFA, HLF, ANF, VMW, SOHU, COH, RVBD, FB

Stocks to Watch on Tuesday

Holding Above 30 DMA = 35

URE, MOS, CHL, ANF, SLB, TLT, WDC, UCO, TPX, SWK, TIF, DLR, GS, JNPR, RVBD, SWI, CIEN, COH, CROX, CRUS, DHR, FAS, GES, HLF, IBM, NKE, SMH, SWKS, V, VECO, VMW, C, DE, FCX, ZAGG

Moving Above 30 DMA = 8

A, RCL

Moving Below 30 DMA = 4

CREE, ICE, JDSU, STI

Staying Below 30 DMA

FAZ, LNKD, ATI, CRM, TSLA CMG, DECK, ESI, X, ZION, BAC, UAL, FB, AKS, CSTR, LDK, MCP, CLF, GLW, INFA, NTES, TSL, CDE, SOHU, TBT, HUM, SINA, F, GRPN, ANR, LVS

Eight Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up