Nine sectors moved lower on Tuesday… XLP, XLV and XLU were
the strongest sectors…XLF was the
weakest sector.
Breadth weakened … decliners led advancers…6.70
to 1 on the NYSE and 2.80 to 1 on the NASDAQ…
Tuesday
– weakened, decliners led
Monday - mixed
Friday – weakened
slightly, advancers led
Thursday – strengthened,
advancers led
Wednesday – weakened,
decliners led
NFLX replaced PRGO in the NDX 100 on
Thursday morning June 6.
SPY
down 1.70…volume 159. 5 million shares
VIX
up 1.63 at 17.07…
TNX
down .20 at 21.95…
TLT
up 1.34 at 113.96...
XLF
down .33 at 19.65…volume 70.6 million shares
AAPL
down 1.29 at 437.60…volume 10.2million shares
FB
down .30 at 24.03…volume 29.8 million shares
Technical Commentary:
IWM – 1.08%, SPY – 1.03%, QQQ – 0.99%, and DIA – 066%.
Stock futures traded down overnight and the SPY opened lower
and then rallied for the first two hours of trading rising to near Monday’s
lows. Buying pressure exhausted and seller were able to push prices lower with
the close 21 cents lower than the open.
The SPY formed a spinning top closing above its 50% Fib retracement
from Thursday’s low.
Tuesday’s losses were again
attributed to Asian weakness as the BOJ kept rates at current levels and renewed
concerns on the Fed tapering its asset purchases.
Interest rates fell and bonds TLT
+1.19% gained. The Euro up 57
pips closed at 1.3312
above its recent horizontal resistance breakout at 1.3243.
Solar stocks FSLR, CSIQ, JASO,
SPWR, YGE and TSL which were sizzling hot on Monday crashed and burned on
Tuesday giving back most or all of the prior day’s gains. GME +7.80% reversed
Monday’s selloff.
TSLA -5.58% closed below
95 near last Wednesday’s low.
The Euro up 35 pips closed
at 1.3255.
FB +4.46% broke out of diagonal resistance and rallied higher
out of a W pattern base with MACD histogram bullish divergence.
The current market condition is support
bounce pause.
Trade what you see on the chart of your position. The intermediate term trend is up and the short-term trend is again neutral. Many bull flag entries and diagonal breakout
entries including the broad and sector indexes occurred on Friday. Adjust stops trade to
targets according to your rules.
Chart Signals Strategy Guidelines
When the market
is trending up Chart Signals looks
for support bounce and resistance breakout entries.
When the market
is trending down Chart signals looks
for resistance pull back and support break entries.
When the market
is sideways in consolidation Chart Signals
will look for support bounce, diagonal breakouts and pull backs
at resistance where price action stays between support and resistance.
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.
The Market Forecast Green Line is
below the Upper Zone and is pointed down. Defensive
posture.
____________________
Setups
H Breakout: XONE, ANGI,
ESI, SCSS, MNST, SNDK, STX,
Diagonal Breakout: CMG,
BBRY, DDD, F, FAS, FSLR, GLD, GLW,
GMCR, JCP, NTES, SCTY, SINA, SOHU, TSLA, YELP, AAPL, AMAT, CELG, COST, ESRX, GILD,
GOOG, NFLX, PCLN, WFM, YHOO
Bull Flag: CREE, GS, JNPR, MRFM, STI, TBT, TIF, TPX, AMZN, BIDU,
CSCO, MSFT, SBUX,
Potential Bullish Divergence: ATI,
Gap Up:
Gap Down:
Bear Flag: CMG, RAX, FAS, P, SPLK, SSYS, YELP, Z, CELG, GILD, SYMC,
At Support: ALK, CTSH, BAC, C, CLF, CRM, FIVE,
NFLX, SWI, VECO, AAPL, AKAM, CMCSA, COST, FAST, QCOM, TXN,
Moves
New Highs: CIEN, PWRD, MU, WDC, SGOC
Gap Up:
Gap Down: LVS, MFRM,
H&D Breakout: GME,
Breakout Test:
Bounce: TLT,
MACD Divergence Bounce: FB,
Bear Flag: GLW, LNKD, RCL, SPY, UAL, ADBE, AMGN, DTV, GRMN,
WYNN,
Support Break: CNX, LVS, UNG, WLT, ADSK, BRCM, FFIV, XLNX,
______________________
14 of 100 NDX stocks closed higher
and two were unchanged on Tuesday…
Leading NDX 100 stocks included: CTRX, ALXN, CELG, NUAN, MDLZ,
CTSH, BIIB, FISV
Lagging NDX stocks included:
TXN, BIDU, WYNN, XLNX, NFLX, GOLD, FFIV, KLAC, FOSL, ATVI, CHKP, EBAY,
AMZN, ADBE, LLTC, BRCM, CA, INTU, ISRG
Leading stocks > +2% on Tuesday included: FAZ
Lagging stocks < -2.0% included: LDK, TSL, TSLA, FAS, CREE, CROX, JNPR, C,
SWKS, RVBD, SINA, MOS, LNKD, URE, MCP, NFLX, CRUS
Stocks to Watch on Wednesday
Holding Above 30 DMA= 36
MSFT, LIFE, INTC, WFM, WDC, AMAT,
STX, LMCA, CA, ESRX, PCAR, XLNX, CERN, KLAC, CHKP, PCLN, MU, NTAP, SPLS, BIDU,
HSIC, SNDK, AVGO, CSCO, ISRG, AMZN, MNST, DLTR, MYL, SBUX, YHOO, BBBY, GOOG,
ORLY, VRTX, VOD
Moving Above 30 DMA = 1
CTRX
Moving Below 30 DMA = 12
DELL, DTV, EXPD, FOSL, GOLD, LINTA, NVDA, ORCL, SIAL, WYNN,
TXN, ADI
Staying Below 30 DMA
BIIB, CTSH, INTO, SIRI, VIAB,
LBTYA, REGN, COST, AAPL, ALTR, NFLX, ADBE, FAST, LLTC, MCHP, NWSA, KRFT, ADP,
AKAM, BMC, FFIV, PAYX, SRCL, XRAY, DISCA, BRCM, CELG, GILD, ALXN, ATVI, CTXS,
EBAY, GRMN, ROST, FISV, MAT, MDLZ, CHRW, CMCSA, SHLD, SBAC, QCOM, EQIX, VRSK,
ADSK, AMGN, EXPE, SYMC, MXIM, FB, NUAN
Five Month Intermediate Term Market Trend: Up
Short Term Market Trend:
Neutral
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