Wednesday, December 5, 2012

ES Rises as XLU, XLF, XLI Lead...Euro, VIX Lower...AAPL Drags NQ Lower...



Six of nine sectors moved higher on WednesdayXLU, XLF, and XLI were the strongest sectors. 

Breadth
strengthened on Wednesday as advancers led decliners1.10 to 1 on the NYSE and decliners led advancers 1.30 to 1 on the NASDAQ…

SPY up 25 cents at 141.50...volume 147.2 million shares…
VIX down -0.66 at 16.46
TNX down -0.17 at 15.91…
TLT down 6 cents at 125.32…
XLF
up 19 cents at 15.85…volume 46.5 million shares

AAPL down 37.05 at 538.79…volume 37.3 million shares
FB up 25 cents at`27.71…on volume of 58.9 million shares…

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Technical Commentary:
The SPY formed another spinning top above its 30 DMA.  Support is holding in its current bull flag pattern.  The VIX move down did confirm the SPY move up today.
 
The ES closed up 3.50 at 1,408.25 as the 1,400 support area held again on Wednesday…NQ futures closed down 27.25 at 2,638.50.

Coal stocks ANR, ACI, WLT, BTU, CNX and JRCC bounced as did hard drive storage stocks WDC and STX.

The weight of the evidence continues to suggest the Nov 16 low is likely to hold and Wednesday’s price action suggests the current pullback may be near its end, forming a higher low and leading to a continuation to higher levels.

The Euro closed down 29 pips at 1.3065 on Wednesday.

TNX, interest rates slipped again and TLT, bonds moved down 6 cents.  XLF jumped 19 cents tot 15.85.


SPY – spinning top, bull flag, support at 30 DMA
AAPL – large black candle, close below 30 dma
FB – spinning top confirms bullish harami, bull flag, BO target 29.63
FAS – white candle bounce in higher low bull flag
AMZN – white candle BO setup, BO target 259.24
EXPE – bullish harami, bull flag
STX – large white candle continues counter trend bounce
VIAB – spinning top confirms bullish harami, bull flag, close above 30 DMA
RIMM – bounce in bull flag, BO setup
CRUS – black candle, DBO setup
F – doji, bull flag setup
PHM – large black candle, close below 30 DMA
SWK – hammer bounce at ST support and 30 DMA
SWI – black candle, bull flag
RAX – hammer, bull flag setup above 30 DMA
URI – white candle high close, BO setup
YELP inverted hammer, bull flag pull back under 30 DMA
XHB – large black candle, DBO setup, close below 30 DMA
XRT – spinning top bounce at 30 DMA

BO = breakout, DBO = diagonal breakout, CT = counter-trend, IT = intermediate term, ST = short term


The Market Forecast Green Line is pointed up above the lower reversal zone.

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Chart Targets:
SPY = 143.52 short-term resistance
ES =
1,419.50…1,425 short-term resistance
EUR/USD = 1.3140, 1.3172 short-term resistance

Short-term support at
1.2954, 1.2878 = Euro
140.69 = SPY
83.20 = SPXL
1,396 = ES
2,626 = NQ

Setups:
Bull Flag:  CRM, DECK, F, LVS, MCP, MOS, RAX, RCL, EXPE, EBAY, FFIV, ORCL, BIG, KAR, COH, CREE, GRPN, NKE, VMW, YELP, OSK

Horizontal Setup:  ROVI, JNPR, SMH, URI, ULTA

Diagonal Setup:  CMG, CRUS, DE, IBM, STI, TER

Moves:
Gap Up:  PXP, CIE, PAY, C

Gap Down:  TIBX, FCX
 
Breakout: BAC, CHL

Bounce:  ANR, WDC, A, FAS, SWK, ADSK, AMZN, CTSH, EA, EXPD, PCAR, RIMM, TXN, DRI, IACI, PCS, TSCO, ACI, WLT, BTU, CNX, JRCC
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48 of 100 NDX stocks closed higher on Wednesday…


Leading NDX 100 stocks included: STX, CTSH, RIMM, FISV, MU, NTAP, CERN, FLEX, NUAN, ADSK

Lagging NDX stocks included: AAPL, SHLD, NFLX, ALTR, BIDU, ISRG, DLTR, CTXS, KLAC, ORLY

Leading stocks > +2% on Wednesday included:  ANR, WDC, C, BAC, AKS, FAS, GRPN, MCP, TRIP

Lagging stocks < -2.0% included: FCX, PHM, LDK, CDE, CRUS, FAZ, ZAGG, SWI, CMG, CIEN

Stocks to Watch on Thursday…
Holding Above 30 DMA = 66
YHOO, MYL, ORLY, CERN, RIMM, XRAY, PCLN, SBUX, QCOM, HSIC, GILD, NTAP, CSCO, EXPE, GMCR, VMED, ATVI, EA, EXPD, LLTC, MXIM, PCAR, TXN,  XLNX, AMGN, BIIB, CELG, DLTR, EBAY, LIFE, SIAL, AMZN, FISV, ADSK, AVGO, CHRW, DELL, FFIV, MAT, MRVL, MU, ORCL, BRCM, INFY, SRCL, COST, KRFT, MNST,
ADBE, ALXN, CMCSA, GOOG, GRMN, NWSA, SYMC, WYNN, AMAT, CTSH, PAYX, ADP, APOL, FOSL, INTU, KLAC, NFLX, VIAB

Moving Above 30 DMA = 3
FLEX, NUAN, STX

Moving Below 30 DMA = 4
AAPL, ALTR, CHKP, NVDA

Staying Below 30 DMA
BBBY, BMC, SIRI, WCRX, SPLS, CTXS, LRCX, ISRG, WFM, LINTA, SHLD, AKAM, GOLD, MCHP, MSFT, PNRA, SNDK, FAST, INTC, BIDU, ESRX, VRSN, VRTX, VOD, DTV, CA, ROST


Fourteen Week Intermediate Term Market Trend: Neutral
Short Term Market Trend: Neutral

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