Lower Open, Slightly Higher Close...CSCO Reports After Close Gaps Up...Futures Higher...

Two of nine sectors moved higher on Tuesday…XLU, XLY and XLP were the strongest sectors.

Breadth weakened on Tuesday as decliners led advancers …2.11 to 1 on the NYSE and 2.07 to 1 on the NASDAQ…

SPY down 47 cents at 137.79...volume 121.7 million shares

VIX -0.03 at 16.65…
TNX -0.22 at 15.89…

TLT up 42 cents at 126.61…
XLF down 10 cents at 15.42…volume 51.9 million shares

AAPL up 6 cents at 542.89…volume 18.7 million shares …

FB down 21 cents at`19.86…volume 71.4 million shares…

CSCO +1.27, +7.54% gaps up after EPS in after hours trading

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Technical Commentary:

The Euro traded to a low of 1.2659 overnight, opened NY at 1.2683 and closed down 5 pips at 1.2703, above its late June resistance at 1.2693.  TNX, interest rates were slightly lower for the third straight day and TLT, bonds moved 42 cents higher.

FB drifted lower on increased volume prior to Wednesday’s lock up expiration of 800 million shares.

XHB and individual housing stocks like TOL, LEN and PHM formed spinning tops following Monday’s weakness.

Following HD positive earnings reaction, XRT and individual retail stocks ROST, TJX, DDS, ORLY and AEO among others rose.

XLF was down 10 cents.

The SPY opened lower and rallied into positive territory during the first two hours then pulled back and formed a white-body inverted hammer before closing down 47 cents.   The VIX moved slightly lower before and did not confirm the SPY move down.

ES moved lower overnight, opened lower, rallied, pulled back and closed at 1,370.75, three points higher than its NY open.  NQ lower overnight, leads to lower open and closed 5 points higher than open at 2,563.

The Market Forecast Green Line is pointed down in lower reversal zone.

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Chart Targets:

SPY = 140.67 short-term resistance
ES = 1,397, 1,430 short-term resistance

EUR/USD = 1.2876, 1.3020 short-term resistance

Short-term support at
1.2693, 1.2638 = Euro

137.55, 137.07 = SPY

78.47, 76.89 = SPXL
1,380, 1,368 = ES
2,583, 2,550 = NQ

Setups:
Bull Flag: VMED, DDS, QCOM, RCL, WHR, F, AOL, CTRP, LRCX, SCCO, SMH, MCO, THC, HCA, TXN, WYNN, CERN, EXPD, EXPE, CHRW, SBUX, CHL, V, BAC, PCAR,  LINTA, LLTC, CREE, JOE, ROVI, VAR, AAN, TER, ISIL, INGR, AVY, WHR, VMW, WDC, R, DV, CIEN, JDSU, HNT, AGQ, BTU, C

EPS Thursday:  SHLD

Potential MACD Divergence:  QQQ, GOLD, CTSH

MACD Divergence:  SPY, DIA, GOOG,

Moves:

Gap Up: HD

Gap Down: AKS, MSFT, VOD, KAR

 

Bounce: DKS, SWN, UA, MU, CBT, MJN, NFLX, ISRG, URI, TMO, SHW, LNKD, TSLA, CROX, YHOO, KRO, TRIP,

Bounce Pause: LDK, FB, GMCR, VRSN, ALXN, PCLN, PPO, BRKR

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29 of 100 NDX stocks closed higher on Tuesday…

Leading NDX 100 stocks included: MU, WCRX, MNST, ROST, YHOO, NFLX, ORLY, SPLS, LIFE, FOSL

Lagging NDX stocks included: BIDU, RIMM, MSFT, KLAC, MRVL, VOD, SHLD, INTC, CTXS, FLEX

Leading stocks > +2% on Tuesday included: FAZ

Lagging stocks < -2.0% included: AKS, TSL, MCP, ESI, ATI, DECK, ANR, CIEN, SOHU, JNPR, GRPN, LVS

Stocks to Watch on Wednesday…

Holding Above 30 DMA = 24
VMED, ISRG, LRCX, YHOO, MYL, ORLY, PCAR, TXN, CERN, CHRW, EXPD, EXPE, MXIM, NFLX, RIMM, GMCR, LLTC, XRAY, PCLN, SBUX, QCOM, HSIC, GILD, SIRI

Moving Above 30 DMA = 1

MU

Moving Below 30 DMA = 6
EA, KLAC, LINTA, SHLD, SRCL, XLNX

Staying Below 30 DMA

FLEX, STX, WYNN, ADBE, AVGO, CMCSA, INTU, MAT, NWSA, SPLS, SYMC, ADSK, AKAM, AMAT, AMGN, ATVI, COST, EBAY, FISV, GOLD, LIFE, MCHP, MSFT, NVDA, ORCL, PAYX, PNRA, SNDK, WFM, FOSL, ADP, FAST, INTC, BIDU, EXPD, CTSH, PCAR, SIAL, VIAB, ALXN, CELG, ESRX, MNST, TXN, VRSN, BIIB, GOOG, MYL, CHKP,  APOL, INFY, ORLY, VRTX, AMZN, BMC, FFIV, GRMN, VOD, WCRX, DLTR, DTV, NUAN, AAPL, BRCM, CA, NTAP, CTXS, SYMC, CSCO, ALTR, BBBY, KLAC, ROST, DELL, MRVL, KRFT

Twelve Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down