Stocks Close Higher on Wednesday...Markets Closed Fourth of July Observance...

Chart Signals is grateful for the blessings, bounty and freedoms that we enjoy in America.  Thank you to all of those who have served and sacrificed to establish and preserve freedom in the United States of America.  May everyone have an incredible and safe Fourth of July!

 

 

Four of nine sectors moved higher on Wednesday… XLK, XLY and XLI were the strongest sectors…XLU was the weakest sector.

 

Breadth strengthened slightly…decliners led advancers…1.55 to 1 on the NYSE and strengthened …advancers led decliners 1.31 to 1 on the NASDAQ…

 

Wednesday - mixed

Tuesday – weakened, decliners led

Monday – strengthened, advancers led

Friday – weakened, advancers led

Thursday – strengthened, advancers led

 

 

 

SPY up .07…volume 75.2 million shares

VIX down .24 at 16.20…

TNX up .32 at 25.01…

TLT down .33 at 110.01...

XLF down .06 at 19.47…volume 25 million shares

 

AAPL up 2.31 at 420.80…volume 8.6 million shares

FB up .11 at 24.52…volume 10.4 million shares

 

 

Technical Commentary:

QQQ + 0.41%, DIA + 0.41%, IWM + 0.20%, SPY + 0.04%.

 

The SPX traded in a modest range of 14 points and a weekly range of 22 points headed into the Fourth of July Holiday.  The SPX which opened lower traded down as many as 10 points from Tuesday’s close before rallying 15 points with a close at 1,615.  The SPY traded 75.2 million shares for the half-day trading session.  The SPX and SPY are holding right below their 30 DMA.

 

The past five days consolidation suggests a pause before continuing to move higher towards resistance of SPX 1,675 and SPY 167.

 

The unofficial start of earnings season is Monday, July 8 with AA reporting earnings after the close.

 

 

CMG gapped up to break horizontal resistance of mid-May closing up 12.94 or 3.48% on higher volume.

 

UCO gapped higher also breaking horizontal resistance of mid-June.  It was up 1.21 or 3.80%.

 

MJN gapped down a second day after receiving a downgrade from analysts closing down 6.05 or 8.08%.

 

UCO also gapped up breaking horizontal resistance the previous day closing at 33.09 up 1.21 or 3.80%.

 

 

 

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 up. 

 

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Setups

H Breakout:  ADBE, BBBY, CELG, CSCO, GOOG, WDC, WFM, ANGI,

 

Diagonal Breakout: AAPL, BRCM, CTSH, NFLX, TXN, XLNX, BAC, DDD, NFLX, SPY, SWI, VECO,

 

Bull Flag:  GRMN, MNST, STX, MFRM, SCSS,

 

Potential Bullish Divergence:  ADSK,

 

Gap Up:

 

Gap Down: 

 

Bear Flag:   

 

At Support:  ADSK, AMGN, BIDU, INTC, MYL, ATI, GMCR, GS,

 

 

 

Moves

New Highs:  AMZN, SBUX, CREE, F, GME, GRPN, SPLK, STI, ZION,

 

Gap Up:  CMG, UCO

 

Gap Down: RCL,   

 

H&D Breakout: DTV,  

 

Breakout Test:

 

Bounce:  AMAT, ORCL, YHOO, RAX,

 

MACD Divergence Bounce:  

 

Bear Flag:  

 

Support Break:  

 

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62 of 100 Leading NDX stocks closed higher on Wednesday…and two were unchanged.

 

 

Leading NDX 100 stocks included:  GOLD, DISCA, YHOO, ORCL, LBTYA, DTV, VRTX, VIAB, CTXS, FISV, AMAT, CSCO, CMCSA

 

Lagging NDX stocks included:  SPLS, CTRX, BIDU, MU, FAST, NWSA, PCAR, FOSL, MDLZ

 

Leading stocks > +2% on Wednesday included: UCO, CMG, LNKD, GRPN

 

Lagging stocks < -2.0% included:  X, CLF, ANR, LDK, TSLA, ESI

 

Stocks to Watch on Thursday

Holding Above 30 DMA= 54

MU, SPLS, AVGO, CSCO, ISRG, AMZN, DLTR, ADBE, INTU, SBUX, BBBY, EXPE, GRMN, MCHP, PCLN, SNDK, SRCL, VRTX, ALTR, CA, LINTA, MAT, MNST, ORLY, PCAR, ROST, STX, VOD, VIAB, FB, LBTYA, KRFT, LMCA, CMCSA, GOOG, HSIC, DISCA, VRSK, ADP, ALXN, CHKP, CTSH, DTV, EBAY, FOSL, NTAP, SYMC, WFM, WDC, NFLX, BMC, CELG, ESRX, SIRI

 

Moving Above 30 DMA = 4

FISV, LLTC, XLNX, ADI

 

Moving Below 30 DMA = 3

CERN, DELL, ISRG

 

Staying Below 30 DMA

EXPD, LIFE, MYL, COST, PAYX, AMAT, INTC, KLAC, MSFT, NVDA, CTRX, CHRW, NUAN, ORCL, WYNN, YHOO, MDLZ, BIDU, GOLD, SIAL, TXN, BIIB, REGN, AAPL, FAST, AKAM, FFIV, XRAY, BRCM, GILD, ATVI, CTXS, SHLD, SBAC, QCOM, EQIX, ADSK, AMGN, MXIM, NWSA

 

Four-Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Up