Friday, June 14, 2013

SPY Finds Daily Support at Thursday's S1 Level...GRPN, GME Gap Higher in Uptrends...

Only one of nine sectors moved higher on Friday… XLU, XLV and XLP were the strongest sectors…XLF was the weakest sector.

Breadth weakened… decliners led advancers…1.17 to 1 on the NYSE and 2.54 to 1 on the NASDAQ…


Friday – weakened, decliners led
Thursday – strengthened, advancers led
Wednesday – strengthened, decliners led
Tuesday – weakened, decliners led
Monday - mixed


SPY down 1.04…volume 141.1 million shares
VIX up .74 at 17.15
TNX down .48 at 21.26
TLT down .27 at 113.82...
XLF down .26 at 19.55…volume 44.3 million shares                 

AAPL down 5.91 at 430.05volume 9.7 million shares
FB down .10 at 23.63volume 30.6 million shares


Technical Commentary:
IWM – 0.78%, DIA – 0.72%, QQQ – 0.66%, and SPY – 0.63%.

The SPY drifted lower on Friday forming a potential intra-day double bottom at the S1 level of Thursday’s large white candle.  The SPY was down –0.986% from last Friday’s close.

What do we know going into next week about the SPY, SPX and ES futures?
On Monday the SPY completed a 59.2% retracement bounce in three days from the prior 10 day selloff that started on May 22.
On Thursday the SPY bounced +1.52% from a low higher than its 10 day selloff low on June 6.  That Thursday low and bounce formed a potential higher low W pattern creating a base from which the SPY could bounce to its 167 resistance area of its current sideways consolidation beginning on May 22.
On Friday a pull back to Thursday’s S1 level occurred creating a daily higher low that looks like a buyers not being aggressive day going into the weekend as opposed to a sellers being aggressive day.

Chart Signals technical conclusion based on institutional price action on the chart is that the current sideways range and recent support lows are still intact, that buyers are stronger than sellers at this week’s price levels and that Thursdays’ bounce rally is likely to continue next week.  The SPY diagonal breakout level of 164.50 would indicate an opportunity for diagonal breakout traders.

Trade what you see on the chart of your position.  The intermediate term trend is up and the short-term trend is neutral with the shorter two-day trend downAdjust stops and 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.


EPS Reaction Summary
EPS Gainers –  ULTA, CIEN, GES, SPLK, PWRD, 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 – CPRT, COST, 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 is below the Upper Zone and is pointed up. 

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Setups
H Breakout:  ATVI, COST, CSCO, DTV, GOOG, INTC, MU, MYL, NTAP, PCLN, ROST, STX, ANGI, CMG, CREE, DDD, GMCR, GME, SOHU, TSLA, YELP,

Diagonal Breakout:  ADBE, ADSK, CELG, CMCSA, ESRX, GILD, MAT, NFLX, NVDA, QCOM, SIRI, WFM, WYNN, YHOO, BBRY, CLF, CNX, CRM, FAS, FIVE, GLD, GLW, LVS, NFLX, P, SPY, SSYS, TLT, TPX, UAL, Z,

Bull Flag:  BIDU, MNST, MSFT, ESI, PWRD,

Potential Bullish Divergence:  EBAY, RAX, UAL,

Gap Up:

Gap Down: 

Bear Flag: 

At Support: 

Moves
New Highs:  BBBY, SCSS,

Gap Up:  GRPN,   

Gap Down:

H&D Breakout:  LNDK,  

Breakout Test:

Bounce:  BRCM, XLNX, SCTY, SWI,

MACD Divergence Bounce:

Bear Flag:  

Support Break: 

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77 of 100 NDX stocks closed higher on Friday…and one was unchanged…


Leading NDX 100 stocks included: SPLS, DTV, AVGO, BIIB, MYL, LMCA, SBAC, BRCM, MXIM, GILD, DISCA, ATVI

Lagging NDX stocks included:  MNST, VRTX, CTRX, ADSK, FAST, BIDU, KLAC, NUAN, CTSH, SHLD, NTAP, ORCL

Leading stocks > +2% on Friday included: GRPN, SGOC, TSL, YELP, SWI, LNKD, HLF, FAZ, UCO, DECK, TSLA

Lagging stocks < -2.0% included:  CLF,  ZAGG, ANR, LDK, MCP, FAS, VECO, ESI, STI, C, ZION

Stocks to Watch on Monday
Holding Above 30 DMA= 34
MSFT, LIFE, INTC, WFM, WDC, AMAT, STX, CA, CERN, PCLN, MU, NTAP, SPLS, BIDU, HSIC, SNDK, AVGO, CSCO, ISRG, AMZN, MNST, MYL, SBUX, BBBY, VRTX, CTRX, DELL, EXPE, KLAC, MCHP, ORLY, KRFT, LMCA

Moving Above 30 DMA = 0


Moving Below 30 DMA =8
DLTR, ESRX, EXPD, NVDA, ORCL, PCAR, ROST, YHOO

Staying Below 30 DMA
CHKP, GOOG, VOD, XLNX, DTV, FOSL, GOLD, LINTA, SIAL, WYNN, TXN, ADI, BIIB, CTSH, INTU, SIRI, VIAB, LBTYA, REGN, COST, AAPL, ALTR, NFLX, ADBE, FAST, LLTC, NWSA, ADP, AKAM, BMC, FFIV, PAYX, SRCL, XRAY, DISCA, BRCM, CELG, GILD, ALXN, ATVI, CTXS, EBAY, GRMN, FISV, MAT, MDLZ, CHRW, CMCSA, SHLD, SBAC, QCOM, EQIX, VRSK, ADSK, AMGN, SYMC, MXIM, FB, NUAN


Five Month Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

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