Wednesday, November 14, 2012

SPY Breaks Support as Euro, FB Rises..ANF, CSCO Gap Up....

All nine sectors moved lower on WednesdayXLU, XLK and XLP were the strongest sectors.

Breadth weakened on Wednesday as decliners led advancers …8.61 to 1 on the NYSE and 3.89 to 1 on the NASDAQ…

SPY down -1.86 at 135.93...volume 191.4 million shares
VIX +1.27 at 17.92
TNX unchanged at 15.89…
TLT up 12 cents at 126.73…
XLF down 27 cents at 15.15…volume 68.5 million shares

AAPL down 6.01 cents at 536.88volume 17 million shares
FB up 2.50 at`22.36…volume 229.4 million shares…

SPLS +0.29, +2.62% following EPS this morning
 
NTAP +1.27, +7.54% gaps up after EPS in after-hours trading
PETM +3.90, +6.01% gaps up after EPS in after-hours trading


DELL, AMAT, ADSK, SHLD, ROST, DLTR, INTU, MRVL, VIAB release earning on Thursday November 15.

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Technical Commentary:
Wednesday’s trading action highlighted how variables don’t always align in typical fashion.  With the SPY down big the Euro traded to the upside all day and closed up 29 pips at 1.2732, above its late June resistance at 1.2693.  TNX, interest rates were slightly unchanged and TLT, bonds moved just 12 cents higher.

FB +2.50, 12.59% jumped on large volume not withstanding Wednesday’s lock up expiration of 800 million shares.

XHB and individual housing stocks like TOL, LEN and PHM collapsed and continued Monday’s weakness.

XRT and individual retail stocks like HD, ROST, DDS, ORLY and AEO moved lower with the broad market.

XLF was down 27 cents.

The SPY opened higher and rallied for 90 minutes then sold off and formed a large black candle before closing down -1.86 just below 136.56, its 50% Fib retracement from its June 4 low.  The VIX moved up and did confirm the SPY move down.
 

The Market Forecast Green Line is pointed down in the lower reversal zone and formed a bullish cluster.
 
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Chart Targets:
SPY = 140.67 short-term resistance
ES = 1,397 short-term resistance
EUR/USD = 1.2876, 1.3020 short-term resistance

Short-term support at
1.2693, 1.2638 = Euro
134.89 = SPY
74.83 = SPXL
1,342.50 = ES
2,513 = NQ


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

EPS Thursday:  DELL, AMAT, ADSK, SHLD, ROST, DLTR, INTU, MRVL, VIAB

Potential MACD Divergence:  DIA, QQQ, GOOG, CTSH

 
Moves:
Gap Up: ANF, CSCO, SPLS
Gap Down:

Bounce: FB, NFLX, KRO, TRIP

Bounce Pause: YHOO, LNKD

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15 of 100 NDX stocks closed higher on Wednesday… 
 
Leading NDX 100 stocks included: CSCO, NTAP, SPLS, DELL, XLNX, FFIV, RIMM, KRFT, APOL, BRCM

Lagging NDX stocks included: GOLD, BIDU, VRTX, STX, MNST, FLEX, SIRI, MU, PNRA, SBUX

Leading stocks > +2% on Tuesday included: ANF, FB, FAZ, GRPN, GES, UCO

Lagging stocks < -2.0% included: TSL, AKS, LDK, MCP, FAS, ZAGG, UAL, X, URE, ANR, CSTR, NTES, LVS, BAC, CROX, MOS, C, SWK, VECO, F. SOHU, STI, SINA, CDE, DLR, FCX, HUM, TPX, WDC, ATI, CREE, CMG, VMW

Stocks to Watch on Thursday…
Holding Above 30 DMA = 18
VMED, LRCX, YHOO, MYL, ORLY, TXN, CERN, EXPD, MXIM, NFLX, RIMM, GMCR, XRAY, PCLN, SBUX, QCOM, HSIC, GILD

Moving Above 30 DMA = 1
DELL, SPLS, XLNX

Moving Below 30 DMA = 7
CHRW, EXPE, ISRG, LLTC, MU, PCAR, SIRI

Staying Below 30 DMA
EA, KLAC, LINTA, SHLD, SRCL, FLEX, STX, WYNN, ADBE, AVGO, CMCSA, INTU, MAT, NWSA, 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, MRVL, KRFT

Six Week Intermediate Term Market Trend: Down
Short Term Market Trend: Down

 

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