PCLN Gaps Up After EPS...Euro Holds...SPY, DIA, IWM, QQQ Form Hammers and Haramis...

All nine sectors moved higher on Tuesday with XLB, XLE and XLY were the strongest sectors ….   XLP was the weakest sector. 

Breadth strengthened as advancers led decliners…1.98 to 1 on the NYSE and 1.53 to 1 on the NASDAQ…

Tuesday – strengthened, advancers led

Monday – weakened, decliners led

Friday – strengthened, advancers led

Thursday – strengthened, decliners led

Wednesday – weakened, decliners led

SPY up 1.02  at 150.02...volume186.5 million shares…

VIX down 2.12 at 16.87…
TNX down .16 at 18.79…

TLT down 69 cents at 118.64…
XLF up 9 cents at 17.35…volume 74.3 million shares

AAPL up 6.17 at 448.97…volume 17.9 million shares…

FB up 12 cents at`27.39…on volume of 31.6 million shares…

Technical Commentary:

Stocks rallied as the Euro was flat after discounting Italian election fears that Italy’s austerity program could be threatened into current market levels.  Buyers took advantage of lower prices and DIA +0.81%, SPY +0.68%, IWM +0.39% and QQQ +0.38% all rallied on Tuesday.

AAPL shares moved up 6.17 forming a bullish harami.  APPL, BIDU, AKAM, CRUS and RCL are the type of pattern where some traders look to sell premium strategies at this technical formation.  FB gained 12 cents formed a hammer while continuing to form a potential MACD bullish divergence.

The Euro fell 1 pip and closed at 1.3060 on Tuesday.

Trade what you see on the chart of your position. Many stocks may have produced exit signals, break of support and bear flag entry signals since last Wednesday.  If positions were exited, begin to look for potential re-entry according to your rules.

The SPY has shifted to a neutral trend as XLB and XLY are negative; XLE, XLF, XLI and XLK are neutral with XLP, XLU and XLI positive.   Friday’s bull flag bounce pattern failed on Monday. 

The Market Forecast Green Line is pointed down below the upper reversal zone. 

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Setups

Breakout:  CPA, TXN, MCHP, ATVI, TW, CLB, ORLY

Diagonal Breakout: BBRY, PBI, HES, GME, SINA, CTXS,

Bull Flag:  CBOE, MDRX, NFLX, PM, SHLD, P, ANGI, KORS, ADM, PTEN, BPOP, TEX, ZION, STRZA, FAST, NTES, LNKD, ICE, AWAY, JDSU, MWV, CBG, PMCS, SPWR, AVP, GES, CNW, AOL, XRX, FTI, VMI, AIZ, JPM,  IM, AVX, Z, GNC, MJN, CSTR, FSLR, PRGO

Potential Bullish Divergence:  FB, CTSH, ORCL, BBRY, EQIX, VECO, STX, RCL, ACI, ANR, WHR

Gap Up: PCLN

Gap Down:

Bear Flag:  LVS, CTL, RAX

Break of Support:  AMZN, SWKS, HSP, CNX, OC, NBR, PPO, AVGO, ROST, WDC, JRCC, DNDN, MGM, A, QCOM, PAY

Moves

Highlights: NFLX, NTES, TPX, BBRY, FB, P, ANGI,

Gap Up:  CWH, ZNGA, AMGN

Gap Down:  DDS, INT, NDSN,

Breakout: STZ, FIVE, FTNT, HPQ, COG,

 

Bounce:  TSCO, CRR,

MACD Divergence Bounce:

Bear Flag:  TFM, ULTA, AKAM, STI, SWKS,

Support Break:  FFIV, STX, CRM, SLB, WLT, BTU, GRMN, LIFE, DE, CCL, CLF, IPI

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65 of 100 NDX stocks closed higher on Tuesday…and one was unchanged…

Leading NDX 100 stocks included:  GOLD, AMAT, ALTR, WDC, SNDK, CERN, BIDU, LBTYA, MDLZ, INTC, KLAC

Lagging NDX stocks included:  EXPD, SPLS, LINTA, XLNX, VRTX, CHRW, MNST, SHLD, ALXN, ATVI, CTRX

Leading stocks> +2% on Tuesday included: ZAGG, GMCR, TIF, VECO, NFLX, TPX, WDC, CREE, VMW

Lagging stocks < -2.0% included:  ESI, TSL, CSTR, CRUS, SWKS, SSYS

Stocks to Watch on Wednesday…

Holding Above 30 DMA = 36
VMED, ADI, LLTC, DELL, NWSA, AMAT, CHKP, FAST, MCHP, SNDK, STRZA, ADP, SYMC,GILD, HSIC, SPLS, ATVI, CERN, ISRG, GOOG, ORLY, BIIB, MAT, PAYX, PRGO, YHOO, ALTR, DLTR, CTRX, ESRX, MNST, AMGN, DISCA, MU, SBAC, TXN

Moving Above 30 DMA =8                      

ADBE, BRCM, CELG, CMCSA, FISV, INTU, NVDA, QCOM                                                                                                     

Moving Below 30 DMA = 2

MYL, XLNX

                                                                            

Staying Below 30 DMA

CA, CTXS, KLAC, LINTA, MSFT, MXIM, SHLD, SRCL, VIAB, ADSK, CSCO, EBAY, FFIV, NTAP, PCAR, PCLN, QCOM, XRAY, AMZN, AVGO, BBBY, CTSH, EQIX, FOSL, GRMN, LIFE, ORCL, ROST, SIAL, SIRI, VRSK, VRTX, WDC, COST, WYNN, EXPE, SBUX, STX, MDLZ, VOD, WFM, EXPD, LBTYA, DTV, NUAN, AKAM, GOLD, BMC, CHRW, BIDU, ALXN, FB, FISV, INTC, REGN, AAPL

Four Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Down