Financial Stocks Lead Market Higher...C, BAC, GS, MS, Resistance Breakout...

Six of nine sectors moved higher on Thursday…XLF, XLV and XLK were the strongest sectors…XLP was again the weakest sector.

Breadth strengthened… advancers led decliners…1.47 to 1 on the NYSE and 2.24 to 1 on the NASDAQ…

Thursday – strengthened, advancers led

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

Monday – Memorial Day

Friday – weakened, decliners led

SPY up .61 at 165.83…volume 107.7 million shares

VIX down .30 at 14.53…

TNX down .11 at 21.24…

TLT down .28 at 114.84...

XLF up .24 at 20.17…volume 55.5 million shares                 

AAPL up 6.63 at 451.58…volume 12.6 million shares

FB up 1.23 at 24.55…volume 60.7 million shares

Technical Commentary:

IWM + 0.67%, DIA + 0.17%, QQQ + 0.53%, and SPY + 0.37%.

Broad Indexes are forming pennant patterns…look for diagonal breakouts.

Trade what you see on the chart of your position.  The intermediate term trend is up with short-term trend neutral in a bull flag consolidation.  Traders should lock in profits when targets are reached.  As always look for re-entry according to your rules.

Chart Signals Strategy Guidelines

Technical setups for short-term option trades be in and out by earnings release.

Over earnings release use earnings option strategies such as straddles, strangles, OTM calls or puts.

After earnings look for bullish setups in positive reaction stocks and bearish setups in negative reaction stocks.

Earnings this Week: SPLK, COST,

EPS Reaction Summary

EPS Gainers –  HPQ, NTAP, AZO, MDT, CSCO, A, MCP, WCRX, NVDA, PCLN, GMCR, GRPN, TSLA, EA, DVA, WFM, CTSH, DTV, LBTYA, AIG, ADP, CBOE, REGN, FB, BZH, EXPD, GM, MDC, STX, V, YELP, ICE, JRCC, VIAB, CMCSA, DDD, AVP, HLF, CERN, CVX, DHI, TWC, ANGI, AKAM, ALXN, ALTR, BIIB, COG, CLF, CROX, DOW, ESI, FFIV, HOG, LRCX, LVS, MO, PHM, RCL, SIAL, XLNX, BA, BRCM, GLW, HES, DAL, COH, DD, NFLX, ILMN, VECO, LCC, RF, ZION, TRV, LMT, CAT, CHKP, HAL, HAS, CMG, GOOG, KMB, STI, MSFT, BTU, PEP, UNP, VZ, MAT, AXP, JNJ, INTC, KO, C, APOL

EPS Losers – TSL, CRM, GME, SHLD, DISH, XRAY, ATVI, RAX, MNST, Z, LNKD, TPX, ZAGG, CTRX, GRMN, MRK, SWI, AMZN, BIDU, CRUS, DECK, EXPE, HSY, KLAC, MXIM, QCOM, PTEN, ABC, MMM, AMGN, T, JNPR, PNRA, VMW, GE, IBM, ISRG, MCD, MS, PM, UNH, SNDK, EBAY, BAC, USB, GS, LLTC

The Market Forecast Green Line closed below the Upper Zone pointed down.

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Setups

H Breakout:

Diagonal Breakout:,

Bull Flag:

Potential Bullish Divergence:

Gap Up:

Gap Down: 

Bear Flag:   

At Support:   

Moves

New Highs:

Gap Up:

Gap Down:  

H&D Breakout:    

Breakout Test:

Bounce:   

MACD Divergence Bounce:

Bear Flag: 

Support Break:    

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70 of 100 NDX stocks closed higher on Thursday…

Leading NDX 100 stocks included: AVGO, VRTX, FB, GOLD, AMAT, SND, LLTC, ADSK, XLNX, CHKP

Lagging NDX stocks included:  SHLD, MDLZ, ATVI, DLTR, NWSA, COST, EQIX, ROST, VIAB, DELL

Leading stocks > +2% on Thursday included: CDE, SWKS, ESI, CRUS, ICE, NFLX, CSTR, FAS, BAC, FCX, CROX, CREE, TSL, MCP, HUM, RCL

Lagging stocks < -2.0% included:  UCO, LDK, FAZ

Stocks to Watch on Friday

Holding Above 30 DMA= 70

ADP, GILD, BIIB, PAYX, YHOO, MSFT, REGN, LIFE, WYNN, INTC, DTV, NWSA, SBUX, VRTX, WFM, COST, WDC, AKAM, AMAT, GOOG, NVDA, SIAL, SIRI, STX, BMC, BRCM, CA, ALXN, ESRX, ORLY, PCAR, XLNX, CERN, AAPL, FOSL, KLAC, LINTA, CHKP, ORCL, VIAB, EXPD, GRMN, LLTC, MYL, PCLN, ADI, MU, NTAP, SPLS, ALTR, BIDU, HSIC, SNDK, AVGO, FFIV, ATVI, CSCO, FAST, DISCA, BBBY, DLTR, EBAY, ISRG, AMZN, CELG, MCHP, STRZA,

Moving Above 30 DMA = 4

CTSH, CTXS, GOLD, TXN

Moving Below 30 DMA = 3

LBTYA, ROST, VMED

Staying Below 30 DMA

FISV, MAT, SRCL, PRGO, MDLZ, CHRW, CMCSA, MNST, SHLD, SBAC, QCOM, VOD, XRAY, EQIX, VRSK, ADSK, ADBE, AMGN, EXPE, SYMC, MXIM, FB, CTRX, NUAN, DELL, INTC

Five Month Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral