Monday, July 9, 2012

SPY Slightly Lower in Bull Flag Pattern...AA Reports, Beats on Revenues...


Eight of nine sectors moved lower on Monday.  XLV, XLI, and XLP were the strongest sectors.

Breadth strengthened as decliners led advancers 1.25 to 1 on the NYSE and 1.34 to 1 on the NASDAQ.


Exchange      NYSE    NASDAQ
Advancers     1,335       1,052
Decliners       1,678       1,417

SPY moved down 17 cents to 135.32 on 102.7 million shares, closing above its 30 DMA for the ninth consecutive day.  The SPX moved down -12.90 at 1,354.68. 

The Market Forecast green line is in the upper reversal zone.

AAPL up +8.01 at 613.89, a higher close than Thursday, on 13.5 million shares...

FB up 44 cents at 32.17 on volume of 17.7 million shares...

GRPN +0.35, +4.15%



AA reported after the close with revenues higher than expected starting earnings season.  JPM and WFC will report on Friday.


Chart Patterns
Daily Bull Flags Setups: URE, HSY, ALGN, COF, COST, ESRX, EBAY, MTW, GOOG, ADP, UCO, GE, AMZN, FISV, CRUS, DE, DIS, POT,  QQQ, DIA, SPY, MOS, IWM, COP, ALXN, FAS, VRSN, INTU, MLNX,C, TFM, VMI, VECO, X, PCLN, VMED, NVDA, LLTC, SHW, APOL, CSTR, ZAGG, MU, AKAM, AVGO, CIEN, JDSU, SHLD

Flag Bounce:  SPG, FMC, TSLA, ULTA


Breakout Continuation: NFLX, GMCR, AAPL, LNG, CL, KMB, LEN,

Breakout Setup: AKS, MNST, EXPE, GOLD, ALTR, GLW,

At Support:  ALTR, MCP, CTXS, ADSK, F, MCHP, AMAT, VMW,

Break of Support: MRVL, KLAC, CROX



Technical Commentary:
The SPY, DIA and IWM formed a new low day in their bull flag pattern on relatively light volume suggesting buyers on the bid side.  QQQ formed an inside day.  AAPL and NFLX gained while ROST pulled back slightly. 

Many stocks formed bull flag setups.  Stay with the trend and watch for a potential bounce entry on Tuesday or Wednesday.   


Monday Highlights:
SPY closes down -17 cents
The Euro moved up 25 pips, closed at 1.2312
TNX -0.31
VIX gained +0.88 at 17.98
XLF down -2 cents at 14.45


31 of 100 NDX stocks closed higher on Monday…


Leading NDX 100 stocks included STX, PNRA, SIRI, NFLX, AAPL, AMGN, INFY, MYL GILD, CERN

Lagging NDX stocks included RIMM, CHKP, SHLD, AKAM, GMCR, AVGO, APOL, MU, FLSR, ADBE

Leading stocks > +2% on Monday included GRPN, UCO

Losing stocks < -2.0% included PCX, ANR, LDK, CROX, MCP, LNKD, SWI, TSL, CIEN, RVBD, SOHU, JDSU, CRM, CSTR, ZAGG, JNPR, RCL, NTES


Stocks to Watch on Tuesday

Holding Above 30 DMA = 30
CIEN, ICE, GES, CSTR, DLR, HLF, URE, LNKD, MOS,  V, UAL, CHL, ESI, DE, FAS, RCL, STI, ZION, AKS,  X, ANF, ATI, FCX, GS, SLB, VECO, ZAGG, TSLA, TLT, WDC

Moving Above 30 DMA = 1
UCO

Moving Below 30 DMA = 7
BAC, CREE, JDSU, LDK, MCP, PCX, SMH

Staying Below 30 DMA
CLF, CRM, CROX, CRUS, DHR, GLW, IBM, INFA, NTES, SWI, SWKS, TSL,
A, C, CDE, SOHU, SWK, TBT, HUM, CMG, SINA, F, RVBD, GRPN, FAZ, NKE, LDK, VMW, TIF, ANR, JNPR, LVS,  TPX, COH

Four Week Intermediate Term Market Trend: Up
Short Term Market Trend: Down

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