Stocks Gain and Hold...

Eight of nine sectors moved higher on Monday following Friday’s flag bounce and horizontal breakout.  XLB, XLK, and XLF were the strongest sectors.

Breadth weakened as advancers led decliners 1.68 to 1 on the NYSE and 1.64 to 1 on the NASDAQ.

Exchange      NYSE    NASDAQ

Advancers     1,872       1,521

Decliners       1,114         927

Monday Highlights:

SPY + .27 at 139.62 on 85,270,00 million shares, volume was light, a bull flag bounce past T1 a recent new high close, above 30 DMA for the seventh straight day.

The Euro moved unchanged, closed at 1.2391

TNX down - 0.19 at 15.77

VIX up +0.31 at 15.95

XLF up + 6 cents at 14.88

AAPL up + 6.85 at 622.55 on 10.7 million shares...

FB up + 83 cents at 21.92 on volume of 27.79 million shares

The Market Forecast green line is pointed up.

Technical Commentary:

The SPY which broke out of its new bull flag pattern on Friday while gapping higher and forming a large white candle including the gap, closing just above its T1, on Monday continued to move higher towards it flagpole target of 143.88.

Many of today’s leading stock are lagging stocks with reversal moves above their 30 DMA including SOHU, SINA, CDE, CRM, BAC, ATI   

Chart Signals looks for the nine week up trend to continue following Monday’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

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: BIDU

GAP:  SOU, NTES, CTSH

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

Setups:

Breakout: C, FAS, LNKD, URE, X,

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

Earnings Reaction Week August 6

Stocks Up

CTSH, SOHU

Stable

Stocks Down

Earnings of Interest Aug 6 - 9

Monday: CTSH, SOHU

Tuesday: ESRX, EXPD, FOSL, PCLN, SIRI

Wednesday: LINTA, MNST, NUAN, NWSA

Thursday: NVDA

81 of 100 NDX stocks closed higher on Monday…

Leading NDX 100 stocks included: FSLR, CTSH, NFLX, VRTX, FFIV, NUAN, RIMM, MU, BIDU, STX, BMC, ATVI, GOLD, CELG, TEVA

Lagging NDX stocks included:  WCRX, MRVL, CERN, ESRX, MNST, ALTR, NTAP, FAST, ADSK, ALXN, DTV, PNRA

Leading stocks > +2% on Monday included: SOHU, SINA, GRPN, TSL, INFA, CDE, LDK, AKS, RVBD, VECO, X, CIEN, JDSU, TPX, C, COH, FB

Losing stocks < -2.0% on included: 

Stocks to Watch on Tuesday…

Holding Above 30 DMA = 39

URE, MOS, CHL, SLB, WDC, UCO, TPX, SWK, TIF, DLR, GS, JNPR, RVBD, SWI, CIEN, CROX, CRUS, DHR, HLF, IBM, SMH, SWKS, V, VECO, FCX,  CREE, A, C, DE, FAS, FCX, GES, JDSU, LNKD, NKE, RCL, STI, TBT, VMW,

Moving Above 30 DMA = 6

ATI, BAC, CDE, CRM, SINA, SOHU

Moving Below 30 DMA = 1

ZION

Staying Below 30 DMA

TLT, ANF, ZAGG, COH, ICE, FAZ, TSLA, CMG, DECK, ESI, UAL, FB, AKS, CSTR, LDK, MCP, CLF, GLW, INFA, NTES, TSL, CDE, HUM, F, GRPN, ANR, LVS

Nine Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up