TSLA Power Rebound with Piercing Line...Earnings Winners and Losers...Airline Stocks Take Flight...

Eight of nine sectors moved higher on Wednesday… XLB, XLE and XLI were the strongest sectors…XLU was the weakest sector.

Breadth strengthened…advancers led decliners…1.91 to 1 on the NYSE and 1.44 to 1 on the NASDAQ…

Wednesday – strengthened, advancers led

Tuesday – weakened, decliners led

Monday – strengthened, advancers led

Friday – weakened, advancers led

Thursday – strengthened, advancers led

SPY up .43…volume 92.8 million shares

VIX down .64 at 13.78…

TNX down .41 at 24.91…

TLT up .20 at 108.86...

XLF up .08 at 20.45…volume 37.4 million shares

AAPL up .12 at 430.31…volume 7.1 million shares

FB up .33 at 26.65…volume 21.5 million shares

Technical Commentary:

IWM + 0.39%, QQQ + 0.25%, SPY + 0.25%, DIA + 0.09%.

The SPY gained 43 cents as buyers and sellers continue to battle at horizontal resistance while IWM gained 40 cents hitting its 161.8% fib extension.

TSLA +10.27% which collapsed on Tuesday after an analyst’s valuation comments came roaring back on Wednesday forming a large piercing line candle from a higher low.  TSLA is volatile but the trend is still up.

Airlines UAL, DAL, ALK and LCC took off and ANGI, GRPN, RAX, MCP, SINA and RCL had big bounces on Wednesday.

MAT and USB closed lower after earnings this morning and AXP, EBAY, INTC and SCSS were down in after-hours trading with earnings following the close.  URI, YHOO, soared and BAC, CSX closed higher after earnings and SNDK, XLNX, IBM jumped in after-hours trading with earnings following the close.

Earnings of Interest

Monday – C

Tuesday – KO, CSX, GS, JNJ, MOS, URI, YHOO

Wednesday – AXP, BAC, EBAY, INTC, IBM, MAT, SNDK, SCSS, STLD, USB, XLNX

Thursday – AMD, CHKP, CMG, GOOG, ISRG, KEY, MSFT, MS, OSTK PM, SWKS, UNP, UNH

Friday – BHI, GE, HON, SLB, STI, WHR

After Release Action

MAT, USB – closed lower

URI, YHOO, BAC, CSX – closed higher

SNDK, XLNX, IBM – up in after-hours

AXP, EBAY, INTC, SCSS – lower in after-hours

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 in the upper zone. 

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Setups

H Breakout: QCOM, ANGI, C, FIVE, PWRD, SINA,

Diagonal Breakout: WYNN, TLT, UNG,

Bull Flag: BBBY, CMCSA, CSCO, CTSH, DTV, FFIV, PCLN, ROST, CREE, F, FSLR, GLW, GS, LNDK, MFRM, SCSS, SSYS, SWI, TBT, TIF, TPX, TSLA, XONE,

Potential Bullish Divergence:  

Gap Up:

Gap Down: 

Bear Flag:   

At Support: DELL, SNDK,

Moves

New Highs: AMAT, AMZN, CELG, COST, GILD, NFLX, TXN, WDC, XLNX, YHOO, BAC, CIEN, NTES, YELP, Z

Gap Up: RCL,   

Gap Down:  BRCM, MAT,  

H&D Breakout: MNST, CNX, LVS, UAL,

Breakout Test: 

Bounce: GRPN,    

MACD Divergence Bounce:  

Bear Flag:  

Support Break:   

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62 of 100 Leading NDX stocks closed higher on Wednesday.

Leading NDX 100 stocks included:  YHOO, NWSA, MNST, NFLX, BIDU, REGN, MDLZ, LBTYA, ESRX, MU, ALXN, AKAM, QCOM, NFLX

Lagging NDX stocks included:  MAT, BRCM, GOLD, XBUX, CTXS, ISRG, MSFT, DELL, MXIM, SHLD, DTV

Leading stocks > +2% on Wednesday included: TSLA, UAL, GRPN, MCP, BAC, ANR, YELP, CIEN, SOHU, LNKD, CRM,

Lagging stocks < -2.0% included: ZAGG, LDK, ESI, TSL

Stocks to Watch on Wednesday

Holding Above 30 DMA= 91

SPLS, AVGO, CSCO, AMZN, DLTR, ADBE, INTU, SBUX, BBBY, EXPE, MCHP, PCLN,  SRCL, VRTX, ALTR, CA, LINTA, MAT, MNST, ORLY, PCAR, PCLN, 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, FISV, LLTC, XLNX, ADI, ATVI, BIIB, CHRW, COST, CTXS, EXPD, GILD, LIFE, MYL, NUAN, PAYX, XRAY, TXN, SIAL, SIRI, AKAM, AMAT, GRMN, KLAC, YHOO, AMGN, MSFT, NVDA, EQIX, REGN, SBAC, AAPL, ADSK, BIDU, CERN, FFIV, MXIM, MDLZ, WYNN, FAST, MU, QCOM

Moving Above 30 DMA = 1

ORCL

Moving Below 30 DMA = 1

BRCM, GOLD, MAT

Staying Below 30 DMA

DELL, SHLD, ISRG, INTC, CTRX, NWSA

Four-Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up