All nine sectors moved lower on Wednesday with defensive sectors XLP, XLU and XLV the strongest sectors…. XLB was the weakest sector.
Breadth weakened as
decliners led advancers…3.24 to 1 on the NYSE and
3.59 to
1 on the NASDAQ…
Wednesday – weakened, decliners led
Tuesday - strengthened, advancers led
Monday – President’s Day
Holiday
Friday – weakened,
decliners led
Thursday – weakened, advancers led
SPY down -1.91 at 151.34...volume 160.4 million
shares…
VIX up 2.37 at 14.68…
TNX down -.05 at 20.21…
TNX down -.05 at 20.21…
TLT up 35 cents at 116.27…
XLF down 27 cents at 17.66…volume 55.2 million shares
XLF down 27 cents at 17.66…volume 55.2 million shares
AAPL down -11.14 at 448.85…volume 17 million shares…
FB down 47 cents at`28.46…on volume of 42.1
million shares…
Technical Commentary:
Wednesday’s selloff was
both broad and deep as more than half of our watch list and 40% of the NDX
100 stocks were lower on increased volume.
The SPY made its lowest close in eight
days forming a bearish engulfing pattern. Selling
in DIA -0.78%, SPY -1.25%, QQQ -1.54% and IWM -1.86% formed
bearish engulfing patterns.
AAPL shares moved down -11.74 falling
back into its consolidation basing pattern.
FB moved down
47 cents forming
a potential bearish harami in a potential bear flag pattern following
a MACD bullish divergence.
The Euro fell 107 pips and closed 1.3281 falling
to mid-January support and forming a similar low. Traders
must now watch for a potential break of the 1.3250 support area. A break of support could provide a catalyst
for a sell-off in stocks.
Trade what you see on the
chart of your position. Many stocks may have produced exit signals on Wednesday as many stocks began to rollover giving
traders reason to protect profits. If positions were exited, begin to look for potential
re-entry according to your rules.
While the
broad market is still in an intermediate term uptrend, the short-term trend has
turned neutral and some individual stocks are breaking support and beginning to
form bearish setups.
Disk storage stock WDC
fell from resistance in what is now a sideways trend and STX broke short-term support and is in a four
week downtrend.
Coal stocks ANR, ACI, BTU, CNX, JRCC
and WLT sold off more than
the broad market on moderate to heavy volume setting up potential short-term
bearish entry signals. Solar stocks SPWR, FSLR, TSL and LDK fell
on Wednesday.
The Market Forecast Green Line is pointed
down in the upper reversal zone.
____________________
Setups
Breakout: TW, CLB, MCHP,
GCI, ZION, TEX, SHLD, BPOP, CERN, TSCO, RSH, FTNT
Diagonal Breakout: CRM, PBI, ORLY, HES, BBRY, NUS, GME, COST
Bull Flag: EQIX, FOSL, AGO, ZION,
TEX, GLW, CRR, ANR, TSCO, JDSU, CBG, AVP,
WYN, VMI, ATI, CSTR, LNKD, SLB, MWV, XRX, QCOM, ZNGA,
C, FIVE, ALB, GES, STZ, IM, ANGI, MAS, RL, DECK, CNW, 1 day – NFLX, AGO, TIF,
KORS, ADM, WLT, CNX, WBC, ADI, AIZ, SWK, ATVI,
FAST, GNC, ATML, AOL, GRPN, MBI, ALTR, FTI, MTW, PTEN, P, NBR
Gap Up:
Gap Down:
Bear Flag: AMZN, CTSH, ORCL, HSP,
RMD, TFM, CTL, CPA, DNB, MCO, GMCR,
Break of Support: AVGO, ROST, TXN,
VIAB, WDC, WHR, SWKS, JRCC, BTU, COST, DNDN, MGM, A, JNPR, PCLN,
Moves
Highlights: CTXS, NFLX, SINA,
NTES, FSLR, WHR, TPX, SWKS, BBRY, FB
Gap Up: MDRX
Gap Down: GRMN, LIFE, OC
Breakout: FB, ESI, SPWR, PRGO, MJN, AVX, PM,
STRZA, GS
Bounce: PMCS, JNPR, FFIV, NTES
Bear Flag: AKAM, DPS
Support Break: STX, RCL, ACI, LVS, ULTA, STI, DE, CCL, CLF,
RAX, IPI
____________________
Just 8 of 100 NDX
stocks closed higher on Wednesday…
Leading NDX 100 stocks included: MNST, CTRX,
ALXN, AMGN, ESRX, MDLZ, DELL, CHRW
Lagging NDX stocks included: GRMN, LIFE, SPLS,
STX, ISRG, GOLD, WDC, BIDU, WYNN, SNDK
Leading stocks> +2% on Wednesday included: SINA, FAZ, DLR
Lagging stocks < -2.0% included: TPX,
CDE, CRUS, PHM, FCX, GRPN, AKS, MCP, HLF, CLF, X, MOS, RAX, NFLX, URI, BBRY,
UCO, ZAGG, WDC, LDK, TSL, JDSU, FAS, ANR, DECK, SWKS, CIEN, ATI, BAC, VMW, F,
C, FSLR, LVS, UAL, JNPR, DE, ANF, RCL, ZION, GS, CRM, SMH, GLW
Stocks to Watch on Thursday…
Holding Above 30 DMA = 57
CSCO, VMED, ADI, LLTC, PCAR, XLNX, ADSK, DELL, DISCA, NWSA, AMAT, KLAC, CHKP, FAST, MCHP, SNDK, STRZA, ADP, EBAY, LINTA, MU, SRCL, SYMC, CA, CELG, GILD, HSIC, PCLN, MDLZ, SPLS, ATVI, SHLD, MSFT, MYL, NTAP, MXIM, CERN, XRAY, ISRG, GOOG, ORLY, BIIB, MAT, PAYX, CTXS, QCOM, ADBE, PRGO, YHOO, ALTR, DLTR, NVDA, CMCSA, CTRX, ESRX, BRCM, FFIV, MNST
CSCO, VMED, ADI, LLTC, PCAR, XLNX, ADSK, DELL, DISCA, NWSA, AMAT, KLAC, CHKP, FAST, MCHP, SNDK, STRZA, ADP, EBAY, LINTA, MU, SRCL, SYMC, CA, CELG, GILD, HSIC, PCLN, MDLZ, SPLS, ATVI, SHLD, MSFT, MYL, NTAP, MXIM, CERN, XRAY, ISRG, GOOG, ORLY, BIIB, MAT, PAYX, CTXS, QCOM, ADBE, PRGO, YHOO, ALTR, DLTR, NVDA, CMCSA, CTRX, ESRX, BRCM, FFIV, MNST
Moving Above 30 DMA = 0
Moving Below 30 DMA = 17
AMZN, AVGO, BBBY, CTSH, EQIX, FOSL, GRMN, LIFE, ORCL, ROST, SIAL,
SIRI, TXN, VIAB, VRSK, VRTX, WDC
Staying Below 30 DMA
COST, WYNN, EXPE, SBUX, STX, MDLZ, VOD, WFM, EXPD, LBTYA, DTV, AMGN,
NUAN, AKAM, GOLD, INTU, BMC, CHRW, BIDU, ALXN, FISV, INTC, FB, SBAC, REGN, AAPL
Twelve Week Intermediate
Term Market Trend: Up
Short Term Market Trend:
Neutral
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