Euro, Bonds Higher...Stocks Lower on Light Volume...

One of nine sectors moved higher on Wednesday… XLB, XLF, and XLI were the strongest sectors.   XLY was the weakest sector.

Breadth weakened on Wednesday as decliners led advancers…1.85 to 1 on the NYSE and 1.76 to 1 on the NASDAQ…

Wednesday – weakened, decliners led

Tuesday - closed

Friday – weakened, decliners led

Thursday – strengthened, advancers led

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

 If short-term trades were exited through target or stop, begin to look for re-entry on a valid signal.

SPY down 60 cents at 141.75...volume 106.9 million shares…

VIX up 1.64 at 19.48…
TNX down -0.16 at 17.58…

TLT up 44 cents at 122.20…
XLF unchanged at 16.36…volume 29.7 million shares

AAPL down -7.17 at 513.00…volume 10.8 million shares …

FB down 42 cents at`26.51…on volume of 33.1 million shares…

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Technical Commentary:

The SPY closed down 60 cents at 141.75 on light holiday volume continuing to form a new potential bull flag.  The VIX closed higher and did confirm the SPY move down.

The weight of the evidence continues to suggest that the current 5 week uptrend is likely to continue.

The Euro closed up 41 pips at 1.3223 on Wednesday. TNX was lower, TLT, bonds rose 44 cents and XLF unchanged at 16.37.

Disk storage stocks WDC was up 28 cents and STX up 8 cents.  Coal stocks ANR, ACI, BTU and WLT bounced higher on Wednesday in bull flag patterns.

The Market Forecast Green Line is in the upper reversal zone.

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Chart Targets:

SPY = 146.82 short-term resistance flagpole target
ES = 1,449 161% Fib extension

1,459 = 200% measuring

EUR/USD = 1.3281 161% Fib extension

Short-term support at
1.3126 = Euro

140.88 = SPY

85.18 = SPXL
1,419, 1,405 = ES
2,609 = NQ

Setups:

Bull Flag: X, NFLX, FB, EXPE, GOOG, VMW, MCP, MNST, NTAP, ORCL, FAS, ZION, STI, IBM, SBUX, CELG, DELL, DECK, TRIP, SMH, ADI, SPY, DIA, IWM, XRAY, ALTR, XLNX, ADBE, ADP, ADSK, BIIB, BMC, CHKP, CMCSA, CSCO, CTSH, CTXS, FOSL, INTC, INTU, MSFT, MU, NVDA, AMZN, SWK, VIAB

Moves:

Bull Flag Bounce:  RIMM, BIDU, AKS

Bounce Continuation:  F, BAC, WDC, WDC, STX, AMAT, SIAL, C, ATI, PCAR

Pause:  LNKD, ALXN, YHOO, URE, V, GMCR, DLR, EXPD, TSLA, URI, FAST, SNDK, LLTC, COST, VECO, GRMN, EBAY, PCAR, DISCA

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17 of 100 NDX stocks closed higher and two were unchanged on Wednesday…

Leading NDX 100 stocks included:  BIDU, FFIV, WDC, CSCO, SIAL, DELL, CTXS, STX, PCAR, AMAT

Lagging NDX stocks included:  AMZN, FOSL, EXPE, ROST, SHLD, PCLN, LIFE, ISRG, LINTA, MYL

Leading stocks> +2% on Wednesday included:  RIMM, ANR, UCO, HLF, TSL, AKS, GRPN, LDK, F, SOHU, BAC

Lagging stocks < -2.0% included: COH, SSYS, ANF, TIF, NKE, SWKS, CSTR, TSLA

Stocks to Watch on Thursday…

Holding Above 30 DMA = 66
YHOO, MYL, XRAY, SBUX, HSIC, FB, CSCO, NTAP, SBAC, VMED,  ADI, EXPD, LLTC, MXIM, PCAR, TXN, XLNX, CELG, SIAL, AMZN, FISV, ADSK, DELL, FFIV, MU, ORCL, BRCM, COST, MNST, ADBE, DISCA, GOOG, GRMN, NWSA, WYNN, AMAT, CTSH, ADP, FOSL, INTU, KLAC, NUAN, STX, WDC, AKAM, ALTR, CHKP, EQIX, FAST, LMCA, MCHP, SNDK, CTXS, CHRW, NVDA, ESRX, INTC, SIRI, BIDU, CMCSA, VRSK, VRTX, CA, WFM

Moving Above 30 DMA = 0

Moving Below 30 DMA = 13

ALXN, BIIB, BMC, CERN, DTV, EBAY, EXPE, LIFE, LINTA, MAT, MSFT, PRGO, REGN

Staying Below 30 DMA

DLTR, MDLZ, SYMC, AMGN, CTRX, ORLY, PAYX, QCOM, SPLS, BBBY, GILD, ISRG, SRCL, ATVI, VOD, AVGO, PCLN, AAPL, SHLD, GOLD, ROST

Fifteen Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Neutral