Stocks Down for Second Straight Day as Euro Continues to Pull Back...

Eight of nine sectors moved lower on Thursday with defensive sectors XLP, XLU and XLV the strongest sectors for the second straight day….   XLB was the weakest sector again. 

Breadth strengthened as decliners led advancers…2.36 to 1 on the NYSE and 2.24 to 1 on the NASDAQ…

Thursday – strengthened, decliners led

Wednesday – weakened, decliners led

Tuesday - strengthened, advancers led

Monday – President’s Day Holiday

Friday – weakened, decliners led

SPY down - 92 cents at 150.42...volume 183.2 million shares…bull flag pattern

VIX up .54 at 15.22…
TNX down -.45 at 19.76…

TLT up 68 cents at 116.95…
XLF down 14 cents at 1752…volume 52.4 million shares

AAPL down -2.79 at 446.06…volume 15.9 million shares…

FB down -1.18 at`27.28…on volume of 49.6 million shares…

Technical Commentary:

Selloff day two ended with the SPY -2.18% from Tuesday’s high.  Selling pressure eased as buyers appeared as losses were about half the size of Wednesday’s.  DIA -0.27%, SPY -0.61%, IWM -0.97% and QQQ -1.07% formed lower shadows and closed above their intraday lows.

AAPL shares moved down -2.79 and formed a doji with a low just 82 cents above its low on Feb 4.  FB moved down -1.18 made a similar low while forming a potential MACD bullish divergence.

The Euro broke support, fell 92 pips and closed 1.3189.  Thursday’s break of support occurred as the selloff in stocks continued.

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 two day short-term trend is down in a bull flag pattern and some individual stocks are breaking support and beginning to form bearish setups.

WDC -1.72% is at support and STX -2.40% moved lower following it break of short-term support on Wednesday.

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

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Setups

Breakout: TW, CLB, SHLD, FTNT

Diagonal Breakout: BBRY, SLB, QCOM, CRM, PBI, ORLY, HES, NUS, GME, COST

Bull Flag: FAS, MCHP, GCI, ZION, TEX, BPOP, CERN, Z, TSCO, RSH, MDRX, EQIX, FOSL, AGO, GLW, CRR, ANR, JDSU, CBG, AVP, WYN, VMI, ATI, CSTR, LNKD, MWV, XRX, ZNGA, C, FIVE, ALB, GES, STZ, IM, ANGI, MAS, RL, DECK, CNW,   2 day – NFLX, AGO, TIF, KORS, ADM, CNX, WBC, ADI, AIZ, ATVI, FAST, GNC, ATML, AOL, GRPN, MBI, ALTR, FTI, MTW, PTEN, P, PRGO, MJN,

Gap Up:

Gap Down:

Bear Flag:  AMZN, HSP, RMD, TFM, CTL, CPA, DNB, MCO, GMCR,

Break of Support: WLT, CTSH, ORCL, SWK, NBR, 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: AWAY

Gap Down: PAY, PPO, GRMN, LIFE, OC

Breakout: FB, ESI, SPWR, 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

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Just 13 of 100 NDX stocks closed higher on Thursday…

Leading NDX 100 stocks included:  ALXN, DLTR, EXPE, ISRG, AMGN, REGN, GOOG, BIDU, MYL, ATVI

Lagging NDX stocks included:  FB, XRAY, LINTA, AVGO, NTAP, EXPD, AMAT, FAST, MU, CTSH

Leading stocks> +2% on Thursday included: GRPN, CDE, FAZ

Lagging stocks < -2.0% included:  SWKS, TSL, TSLA, LDK, DECK, UCO, URI, ANF, BAC, SSYS, CIEN, X, MCP, GS, AKS, SINA, ANR, JDSU, CREE, FAS, NTES, FSLR, C, CRUS, RCL, SWK

Stocks to Watch on Friday…

Holding Above 30 DMA = 42
VMED, ADI, LLTC, XLNX, DELL, NWSA, AMAT, KLAC, CHKP, FAST, MCHP, SNDK, STRZA, ADP, SRCL, SYMC, CA, CELG, GILD, HSIC, MDLZ, SPLS, ATVI, SHLD, MSFT, MYL, CERN, ISRG, GOOG, ORLY, BIIB, MAT, PAYX, CTXS, ADBE, PRGO, YHOO, ALTR, DLTR, CMCSA, CTRX, ESRX, MNST

Moving Above 30 DMA = 1                      

AMGN                                   

Moving Below 30 DMA = 15

ADSK, BRCM, CSCO, DISCA, EBAY, FFIV, LINTA, MU, MXIM, NTAP, NVDA, PCAR, PCLN, QCOM, XRAY

Staying Below 30 DMA

AMZN, AVGO, BBBY, CTSH, EQIX, FOSL, GRMN, LIFE, ORCL, ROST, SIAL, SIRI, TXN, VIAB, VRSK, VRTX, WDC, COST, WYNN, EXPE, SBUX, STX, MDLZ, VOD, WFM, EXPD, LBTYA, DTV, 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: Down