SPY Weak Following FOMC Announcement...FB Gaps Up...TPX, NFLX Gaps Down...

Six of nine sectors moved down and two sectors were unchanged on Wednesday…XLV, XLF and XLP were the strongest sectors.

Breadth strengthened on Wednesday as decliners led advancers…1.25 to 1 on the NYSE and 1.25 to 1 on the NASDAQ…

Exchange      NYSE     NASDAQ

Advancers     1,322        1,081
Decliners       1,654        1,356

SPY down 40 cents at 141.02...volume 120.1 million shares

VIX -0.50 at 18.33…
TNX +0.11 at 17.75…
TLT down -1.21 at 121.48…
XLF unchanged at 15.84…volume 52.6 million shares

AAPL up 3.47 at 616.83…volume 19.9 million shares …

FB up 3.73 at`23.23… volume 228.8 million shares…following better than expected earnings after the close on Tuesday

Technical Commentary:
The Euro traded lower overnight and rallied to near even at the open, sold off and rallied again to close down 15 pips, forming a hammer in its current bull flag pattern.  The SPY which traded positive for much of the day sold off after the FOMC announcement to close down 40 cents. 

With the broad markets weak and trending down, earnings winners are making big gains and losers big losses.  This of course is typical during earnings season. Selectivity continues to be the key during earnings seasons as there are both many positive and negative earnings reaction.

Hot coal stocks pulled back for a second day.

ES holds 1,400 support levels.  NQ holds 2,650 support and continues forming a potential MACD histogram bullish divergence.

The SPY closes at its 141 support level. 

Earnings after the Close:  WYNN, AKAM, SYMC up…FFIV, CLF down

Earnings continue on Thursday.

Earnings Watch:

Positive Reactions –  FB, SLAB, PLCM, TUP, AVY, REGN, GILD, PNRA, TMO, DOW, VMW, COH, VMED, VECO, WHR, HOG, R, RSH, CSL, LXK, BTU, YHOO, CAT, RVBD, SNDK, WCC, EBAY, MAN, COF, RHI, LRCX, STT, MAT, ISRG, GS, C, PII, DPZ

Negative Reactions – TPX, NFLX, ALTR, CPWR, EAT, GLW, JNPR, ALXN, SRCL, CHRW, RF, WDC, DD, CIT, RF, ALV, BMRN, STI, GOOG, IBM, APOL, CHKP, INTC, INFY, CHKP, AXP, XLNX, MSFT, CMG, MS, FLEX, AMD, ETFC, PH, APD, ALGN, MLNX

Monday –ZION, TXN

Tuesday –BRCM, SIAL
Wednesday – ORLY
Thursday –AAPL, AMZN, BIDU, CNX, PCAR, CERN, CTXS, ESRX, EXPE, FSLR, GILD, WYNN, BIIB, CA, CELG, EA, KLAC, MXIM, MYL, VRSN, VRTX, XRAY, PHM, RCL, SWI, INFA, ESI
Friday - CMCSA

Chart Targets:

SPY = 147.88 2.61 Fib
ES = 1,466.002.61 Fib on ESZ2
EUR/USD = 1.3095 1.60 Fib, 1.3345S&R Measuring

Short-term support at
141, 139.40 = SPY
1,400, 1,390 = ES
2,650, 2,610 = NQ

Setups:
Bull Flag: URI, ANR, ACI, EXPD, VMED, JRCC, C, DE, LVS, FAS, HLF, RCL, CLF, DECK, TIF, AMGN, CMCSA, DTV, FAST, FISV, FOSL, EBAY, LINTA, LRCX, WYNN, GMCR, BTU, CNX, WLT, X, ISRG, MAN, COF, RHI, CYN, COH, R, RSH, INFA, LXK

Resistance BO Setup: RVBD, BIDU, CTRP, CDE, HUM, ORLY

At Support: SRCL, V, NWSA, AAPL, CTSH, GOLD, SWKS,  QCOM, FLEX, AVGO, JDSU, COST, ESRX, FFIV, GOOG MXIM, ORCL, PAYX, PCLN, STX, SYMC, VRSN, AKAM, LLTC, CA, CELG, VRTX, ETFC, EXPE, MCHP, NVDA, PCLN

Hammer: DECK, MRVL, ESRX, FLEX, GRMN, LIFE, LRCX, VRTX, FSLR

Inverted Hammer: CELG, NTAP, AKS, LNKD

Tombstone Doji: WHR

Moves:

Gap Up: FB, SLAB, PLCM, TUP, AVY, PNRA, GILD, PNRA, TMO, CHL 

Gap Down: TPX, UTHR, NFLX, ATI, GLW

 

Support BO: GLW, JNPR, ATI, CSCO, ALXN, CHRW, WFM, BBBY, AMZN, DISCA, MA, BRCM

Resistance BO: HOG, ISRG, ADBE

Bounce: MNST, SWI, LNKD, MYL, CRUS, CHL, CHKP, LCC, LIFE, SBUX, LULU, SHLD, TSL, LCC, CSL

33 OF 100 NDX stock closed higher on Wednesday…

Leading NDX 100 stocks included: MNST, GILD, PNRA, CHKP, DLTR, MYL, GMCR, SHLD, XRAY, NWSA

Lagging NDX stocks included: NFLX, ALTR, ALXN, CHRW, MU, CSCO, VMED, SRCL, BRCM, BBBY

Leading stocks > +2% on Wednesday included: FB, SWI, CRUS, CHL, LNKD, CMG, VMW

Lagging stocks < -2.0% included: TPX, ATI, GLW, JNPR, INFA, ESI, ANR, TSLA, CIEN, HLF, JDSU, UCO, VECO

Stocks to Watch on Thursday…

Holding Above 30 DMA
VMED, CMCSA, LINTA, SIRI, SHLD, FISV, AMGN, BIDU, ISRG, ADBE, FOSL, LRCX, MAT, EBAY, YHOO

Moving Above 30 DMA = 1

GILD

Moving Below 30 DMA = 7
CHRW, EXPD, FAST, NFLX, RIMM, SRCL, WYNN

Staying Below 30 DMA

CTSH, GOLD, INTU, NWSA, PCAR, SIAL, VIAB, ADP, ALXN, CELG, EA, ESRX, MNST, MXIM, PNRA, TXN, VRSN, WFM, XRAY, BIIB, FLEX, GOOG, LIFE, MYL, SNDK, AKAM, CHKP, ORCL, APOL, INFY, ORLY, VRTX, CERN, COST, SPLS, AMZN, BMC, EXPE, FFIV, GRMN, HSIC, LLTC, PCLN, VOD, WCRX, ADSK, DLTR, DTV, NUAN, QCOM, SBUX, AAPL, ATVI, BRCM, CA, MSFT, NTAP, PAYX, XLNX, CTXS, GMCR, SYMC, CSCO, MU, ALTR, BBBY, AMAT, KLAC, MCHP, AVGO, ROST, STX, NVDA, DELL, INTC, MRVL, KRFT

Six Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down