Stocks Edge Up...PCLN Down 17% After Dissappointing Earnings Report...Cites European Woes...

Seven of nine sectors moved higher on Wednesday… XLP, XLV, and XLU were the strongest sectors.

Breadth weakened as advancers led decliners 1.05 to 1 on the NYSE and 1.27 to 1 on the NASDAQ.

Exchange      NYSE    NASDAQ

Advancers     1,521       1,088

Decliners       1,448       1,388

Wednesday Highlights:

SPY + .17 at 140.49 on 89 million shares, a bull flag bounce past T1 a recent new high close, above 30 DMA for the seventh straight day.

TNX up + .12 at 16.40…

VIX down 67 cents at 15.32…

XLF unchanged…

AAPL down - 1.05 at 619.86 on 8.7 million shares...

FB unchanged… volume was 29.5 million shares…

The Market Forecast green line is pointed up.

Technical Commentary:

The SPY again continues its bull flag climb…closing at a new high of 140.49…continues to move higher towards it flagpole target of 143.88…

PCLN was down 117.48…down 17.28%...closing at 562.32…earnings report disappoint…cited economic uncertainty in Europe as main reason for weak earnings outlook…

ESRX gaps up closing at 60.73…up 4.71…8.41% after earnings report…

Chart Signals looks for the nine week up trend to continue following Monday’s through Wednesday’s continuation of Friday SPY bounce and breakout. 

Chart Target Insight: 

SPY = 141.66 Fib extension 161.8, 143.10 S&R Measuring

ES = 1,411 Fib extension 161.8, 1,425.75 S&R Measuring

Chart Patterns

Horizontal or Diagonal Breakout: TPX, TIF, GS, RVBD, BECO, CIEN, CROX, X, JDSU, LNKD, CDE, TSLA, STX, SIRI, MVDA, CELF, LIFE, XRAY, EA, BMC, NUAN…

            New breakouts on Tuesday:  DECK, NTAP, ALTR, FLEX, WYNN

            New breakouts on Wednesday:  DLTR, RIMM

Bull Flag Bounce: SPY, DIA, QQQ, AAPL, ADP, ADSK, AKAM, ALXN, AMZN, BIIB, CELG, COST, DTV, EXPE, GOOG, LLTC, MAT, MCHP, MRVL, NWSA, ORCL, QCOM, VMED, VRSN, CIEN, CROX, CRUS, GS, HLF, IBM, JDSU, NKE, RVBD, SLB, SWK, V, VMW, WDC…

Pennant Breakout:  

            New on Tuesday:  CSTR, GLW, HUM, YHOO, AMAT, FFIV, LRCX

           New on Wednesday: HUM

GAP Up:        New on Tuesday:  AKS, FOSL, MU…

                        New On Wednesday:  ESRX

GAP Down:  New on Wednesday:  PCLN

Double Bottom Bounce: IWM, DLTR, ISRG, MNST, ROST, SIAL, BAC, TBT

Setups:

Bull Flag: AMGN, EBAY, MU, NTAP, PCAR, PNRA, SIRI, SNDK, CHL, GES, SWKS, TPX

Earnings Reaction Week August 6

Stocks Up

CTSH, SOHU

Earnings of Interest Aug 6 - 9

Monday: CTSH, SOHU

Tuesday: ESRX, EXPD, FOSL, PCLN, SIRI

Wednesday: LINTA, MNST, NUAN, NWSA