SPY, Stocks Bounce After Consumer Confidence and Home Prices Jump...Financials Rise...

All nine sectors moved higher on Tuesday… XLF, XLU and XLE were the strongest sectors…XLP was the weakest sector.

Breadth strengthened…advancers led decliners…4.19 to 1 on the NYSE and 2.51 to 1 on the NASDAQ…

Tuesday – strengthened, advancers led

Monday – weakened, decliners led

Friday – strengthened, advancers led

Thursday weakened, decliners led

Wednesday – weakened, decliners led

SPY up 1.51…volume 162.1 million shares

VIX down 1.64 at 18.47…

TNX up .41 at 25.89…

TLT down .97 at 107.88...

XLF up .35 at 19.12…volume 65.2 million shares                 

AAPL up .09 at 402.63…volume 11.2 million shares

FB up .31 at 24.25…volume 24.7 million shares

Technical Commentary:

 IWM +0.96%, SPY +0.96%, QQQ +0.73%, DIA +0.70%.

Positive economic news of rising home prices and Consumer Confidence rising to its highest level since January 2008 appeared to act as a catalyst for buyers to step in on Tuesday.

Numerous stocks that have fallen below their 30 DMA recently have either MACD Histogram Bullish Divergence setups or MACD HBD entry bounces on Tuesday including GILD, SPY, DDD, COST, FAST and EBAY.

 (click image to enlarge)

Trade what you see on the chart of your position.  The multi-month intermediate term trend is up, the four-week trend is down and the ten-day short-term trend is down and Tuesday was a support bounce.  Chart Signals guidance…Adjust stops, trade to targets and take bearish or bullish trades according to your rules as the month long consolidation continues.  Several bullish setup entries did occur on Tuesday and as always follow 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 –  ADBE, ULTA, 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 – ORCL, 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 down. 

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Setups

H Breakout:  ANGI, XONE, ZION, FB,

Diagonal Breakout: MFRM, Z,

Bull Flag:  GME, JNPR, SCSS, YELP, FIVE, ADBE, AMZN, BBBY, MU, NTAP, PCLN, SNDK,

Potential Bullish Divergence:  NFLX, AMGN, CSCO, DTV, ESRX, NVDA, CMG, GMCR, ATI, CLF, UNG, WLT,

Gap Up:

Gap Down: 

Bear Flag:  BIDU, ALK, LVS, NTES, SINA, JCP,

At Support: VECO,

Moves

New Highs:  GRPN, TBT, XONE,

Gap Up: 

Gap Down:  

H&D Breakout:  P,

Breakout Test:

Bounce:  SCTY, Z, STX, WDC, ZION, CIEN, CREE, PWRD, LNKD, STI, ESI, BBRY, BAC, C, F, GS, CTSH, MNST,

MACD Divergence Bounce: SPY, DDD, FAS, FSLR, QCOM, GLW, RCL, UAL, AKAM, ADSK, ATVI, BRCM, CELG, CMCSA, COST, EBAY, FAST, GILD, MAT, WFM

Bear Flag:  

Support Break:   

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86 of 100 NDX stocks closed higher and one was unchanged on Tuesday…

Leading NDX 100 stocks included:  YHOO, QCOM, KLAC, STX, SPLS, WDC, ALTR, VOD, BRCM, TXN

Lagging NDX stocks included:  NFLX, ORCL, BIIB, SIRI, DTV, ISRG, GOOG, XRAY, ESRX, CSCO

Leading stocks > +2% on Monday included: SCTY, FSLR, HLF, FAS, MCP, UAL, ZAGG, RCL, URI, PHM, TSL, X, URE, C, TPX, BBRY, CREE, BAC, SINA, STI, ANR, LVS, ZION, GRPN, LNKD, SMH, RAX, F, CLF

Lagging stocks < -2.0% included:  FAZ, UNG

Stocks to Watch on Wednesday

Holding Above 30 DMA= 9

LIFE, MU, SPLS, AVGO, CSCO, ISRG, AMZN, ORLY, DLTR

Moving Above 30 DMA = 7

ADBE, AMAT, DELL, INTU, PAYX, SBUX, WFM

Moving Below 30 DMA = 0

Staying Below 30 DMA

BBBY, EXPE, NTAP, PCLN, GOOG, SNDK, STX, LMCA, CA, ESRX, FOSL, HSIC, INTC, KLAC, MHCP, MNST, MSFT, MYL, NVDA, PCAR, XLNX, ADI, CTRX, WDC, NFLX, ADP, CERN, CHKP, CHRW, COST, DTV, EXPD, FISV, GRMN, LINTA, NUAN, ORCL, ROST, SRCL, VOD, WYNN, YHOO, MDLZ, DISCA, VRSK, DRFT, BIDU, VRTX, GOLD, SIAL, TXN, BIIB, CTSH, SIRI, VIAB, LBTYA, REGN, AAPL, ALTR, FAST, LLTC, NWSA, AKAM, BMC, FFIV, XRAY, BRCM, CELG, GILD, ALXN, ATVI, CTXS, EBAY, MAT, CMCSA, SHLD, SBAC, QCOM, EQIX, ADSK, AMGN, SYMC, MXIM, FB,

Four-Week Intermediate Term Market Trend: Down

Ten-day Short Term Market Trend: Down