SPY, AAPL Find Support and Reverse...SOHU and SINA Take Off...

Five of nine sectors moved higher on Wednesday…XLB, XLE and XLY were the strongest sectors.

Breadth weakened as decliners led advancers 1.54 to 1 on the NYSE and 1.68 to 1 on the Nasdaq…

Exchange      NYSE    NASDAQ

Advancers     1,175          915

Decliners       1,814       1,542

Wednesday Highlights:

SPY moved up 6 cents…closed at 141.82…volume was 133 million shares…

VIX up +.09 at 15.11…

Euro up +58 at 1.2527…

TNX down -.86 at 17.19…

TLT up 2.02 at 124.41…

XLF down 2 cents at 15.20…

AAPL up 12.81 at 668.87…volume 20.1 million shares …

FB up 28 cents at 19.16… volume 49.8 million shares…

WSM +4.45, +11.64% following earnings on Tuesday after the close…

The Market Forecast green line is in upper zone.

Technical Commentary:

The Euro rose and the pull back that started on Tuesday in AAPL and the SPY found support just above 140.92 at 141.07as stocks rallied from their lows forming a two day bull flag.  Interest rates fell and bonds rose as the VIX was barely positive.

The trend is still up and the short-term trend may have run its course with a modest pull back.  Chart Signals is seeing a large number of bull flags with strong bounces in SOHU and SINA on Wednesday.  Look for a bounce in the many bull flags as early as Thursday.

Chart Targets: 

SPY = 143.10 S&R Measuring

ES = 1,425.75 S&R Measuring

Short-term support at

140.92, 139.80 = SPY

1,403, 1,387 = ES

2,743, 2,700 = NQ

Setup Chart Patterns

Bull Flag: SHLD, ADP, ORCL, QCOM, BIDU, BRCM, LLTC, MXIM, MCHP, PCAR, XRAY, EXPE, MU, INTC, DTV, VRSN, INTU, NVDA, CMCSA, ALTR, LIFE, VOD, AVGO, BBBY, FAST, WYNN, ISRG, CHKP, FFIV, FOSL, RVBD, CLF, JDSU, GLW, JNPR, SMH, COH, VMW, GM, F

Horizontal or Diagonal Breakout: ADSK, GOLD, NTAP, CIEN, CREE, CROX, RAX, RCL, SLB, SWKS, ZION, AMZN, BMC, CA, CTXS, MSFT

Bounce:

Wednesday – SOHU, SINA, LVS, FCX, SWK, WFM, ADSK, ALXN, EBAY, AAPL, AMZN, AKAM, GOLD, STX, ELLI

Tuesday – GMCR, ESRX, KLAC, SNDK, ATI, X

Monday – GRMN

44 of 100 NDX stocks closed higher on Wednesday…

Leading NDX 100 stocks included: ADSK, ALXN, EBAY, AAPL, AMZN, AKAM, DLTR, GOLD, SNDK, STX

Lagging NDX stocks included:  DELL, APOL, MU, FFIV, PCAR, FLEX, INTC, EXPD, XLNX, RIMM

Leading stocks > +2% on Wednesday included: SOHU, ANR, TSLA, LVS, SINA

Lagging stocks < -2.0% included:  TPX, TBT, VECO, MCP

Stocks to Watch on Thursday…

Holding Above 30 DMA = 47

MOS, SLB, WDC, UCO, TPX, SWK, GS, JNPR, RVBD, SWI, CIEN, CROX, DHR, IBM SMH, SWKS, V, VECO, CRUS, X, CREE, C, FAS, FCX, GES, JDSU, NKE, RCL, STI, TBT, TIF, VMW, ATI, BAC, CDE, CRM, SINA, SOHU, F, AKS, DECK, ZION, ANF, INFA, COH, ICE, LVS, ANR, LNKD, TSL

Moving Above 30 DMA = 1

HUM

Moving Below 30 DMA = 4

DE, GLW, HLF, URE

Staying Below 30 DMA

COH, VECO, LNKD, TSLA, A, CHL, NTES, DE, GRPN, ANR, CLF, DLR, TLT, ZAGG, FAZ, CMG, ESI, UAL, FB, CSTR, LDK, MCP

Eleven Week Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral