FB New All-time High Close...Just the Beginning?...MSFT Jumps on CEO News...ADSK, ROST Gap...

All nine sectors moved higher on Friday…XLU, XLB and XLK were the strongest sectors…XLY was the weakest sector. 

 

Breadth weakened… advancers led decliners…2.11 to 1 on the NYSE and 1.16 to 1 on the NASDAQ…

 

Friday – weakened, advancers led

Thursday – strengthened – advancers led

Wednesday – weakened, decliners led

Tuesday – strengthened – advancers led

Monday – weakened, decliners led

 

 

SPY up .56…volume 90.9 million shares

VIX down -.78…at 13.98…

TNX down -0.83 at 28.18…

TLT up 1.12 at 104.29...

XLF up .02 at 20.06…volume 25.3 million shares

 

AAPL down -1.94 at 501.02…volume 7.9 million shares…inside day

FB up 2.00 at 40.55…volume 86.4 million shares…New All-time High Close

 

Technical Commentary:

 

QQQ +0.67%, SPY +0.34%, DIA +0.29%, IWM +0.25%.  

 

The broad SPX open higher and traded in a narrow range most of the day closed above its open gaining 6.54 points.  The ES futures with its highest close in seven days closed higher for a second straight day for the first time since August 13.   

 

While the SPY has continued in a consolidation pattern that could ultimately be a bear flag price pattern, GMCR, NFLX, FB, TSLA and WYNN, which we listed on Thursday as horizontal resistance breakout setups all closed above resistance on Friday.  These are of course leading stocks along with GRMN, ROST and SSYS that are trading well above their 30 DMA while the SPY is below its 30 DMA.

 

The NDX closed higher with support from just 60 stocks.   Over 90% of the 22 point gain came from MSFT and FB.  While only AAPL and GOOG weighed slightly on the NDX, over 50 of 100 stocks had gains or losses of 20 cents or less.  Without the big CEO news move on MSFT the index would have been near even on Friday.     

 

 

Short-term market posture continues defensive.

Support Levels

ES = 1,647, 1,629, 1,611

SPY = 165.15, 163.35, 161.55

 

 

Q2 Earnings Reactions

Positive Reactions – ADSK, ROST, GME, JRCC, RAX, SSYS, TMUS, SGMS, FWLT, MNST, GRPN, TSLA, AGU, BOFI, FOSL, ADM, MGM, DSW, WPO, CNK, KORS, SATS, MGM, EAT, VIAB, YOKU, AIG, CTRX, CHK, COP, LNKD, MELI, MYL, NUS, ZAGG, CMCSA, CTRP, GRMN, HES, MA, MCHP, SODA, YELP, QCOR, FISV, BWLD, MTW, VRTX, WYNN, SWK, SBUX, ALK, AMZN, CELG, CB, CLF, GILD, IP, MXIM, RCL, HSY, UA, UAL, V,   FB, BIDU, TRIP, COG, CTXS, ETFC, FFIV, AKAM, AAPL, EA, VMW, DAL, LCC, EMC, LLY, MCO, AKS, FCX, BTU, UTX, HAS, TXN, GE, HON, SLB, STI, WHR, CHKP, CMG, JCI, KEY, MS, OSTK, SWKS, UNP, UNH, BAC, IBM, SNDK, XLNX, CSX, GS, URI, YHOO, C, WFC

 

Negative Reactions – P, SHLD, PWRD, CREE, MCP, GMCR, SCTY, SUNE, Z, CAR, CHRW, FSLR, LINTA, ANR, CVX, CME, XOM, K, DTV, RVBD, X, COH, DISCA, ESRX, SOHU, DLR, CERN, CRUS, DECK, DNKN, EXPE, KLAC, POT, PCP, SWI, TPX, EQIX, ABC, CROX, ANGI, ATI, CAT, WDC, PNRA, STX, NSC, USNA, TRV, MCD, MO, NFLX, ZION, BHI, AMD, GOOG, ISRG, MSFT, EBAY, INTC, MAT, SCSS, USB, AXP, KO, MOS

 

 

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 out of the upper zone and pointed down. 

 

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Setups

H Breakout: SCSS, MFRM, YHOO, ANR, ACI, BTU, JRCC, KOL, WLT, KKD, LNKD, SSYS, TIF, ZION, AKAM, BIDU, COST, QCOM,

 

Diagonal Breakout: CMG, CRM, DNKN, LVS, RCL, SINA, SOHU, STI, YELP, AMGN, ATVI, BBBY, CMCSA, ESRX, MU, WDC, XLNX

 

Bull Flag: GME, BBRY, TBT, AAPL, MYL, NTAP, NVDA,

 

Potential Bullish Divergence:  MAT, ANGI, FIVE

 

Gap Up: 

 

Gap Down: 

 

Bear Flag:  BAC, C, CIEN, F, FAS, FSLR, GLW, GS, SPY, TLT, UNG, ADBE, AMAT, GOOG, INTC, MNST, STX,

 

At Support: ANGI, CREE, FIVE, SCTY, SPLK, UAL,

 

Moves

New Highs:  NTES, GMCR, NFLX, FB, TSLA, WYNN,  

 

Gap Up: GME, ADSK, MSFT, ROST

 

Gap Down: P

 

H&D Breakout: GMCR, NFLX, FB, TSLA, WYNN, CNX, GLD, NTES, RAX, VECO, Z, AMZN

 

Breakout Test:  GRMN, ROST,

 

Bounce: PWRD, ALK, ESI, YOKU, CTSH, PCLN, SBUX, TXN,

 

MACD Divergence Bounce: TPX, YHOO, SOHU, STX, SCSS, MFRM

 

Bear Flag:  

 

Support Break:

 

______________________

 

 

60 of 100 NDX stocks closed higher and two were unchanged on Friday.

 

 

Leading NDX 100 stocks included: ADSK, MSFT, FB, EXPE, NFLX, TSLA, GOLD, ROST, EQIX, SBIC

 

Lagging NDX stocks included:  WDC, ALXN, MNST, VRTX, CTXS, FFIV, AMGN, BIDU, CSCO, FOSL

 

Leading stocks > +2% on Friday included: PWRD, TPX, Z, CDE, TSL, GMCR, ESI, RVBD, LDK, VMW, SCSS, MFRM, LNKD, MCP, AKS, URE, UCO, JCP, XONE, VECO

 

Lagging stocks < -2.0% included: P, TBT

 

Stocks to Watch on Monday

Holding Above 30 DMA= 38

TSLA, GRMN, PCLN, VIAB, FB, NTAP, SYMC, NFLX, BMC, FISV, CTXS, MYL, AKAM, BIDU, CTRX, QCOM, AAPL, WYNN, FOXA, DELL, MU, FOSL, GOLD, NVDA, NUAN, ROST, CTSH, ADP, ADSK, CA, CHKP, DLTR, EXPD, FFIV, GILD, SBUX, TXN, YHOO

 

Moving Above 30 DMA = 6

INTU, MDLZ, MSFT, ORLY, VOD, VRSK

 

Moving Below 30 DMA = 2

ATVI, WDC

       

Staying Below 30 DMA

SHLD, PAYX, SPLS, SIAL, HSIC, ALTR, ALXN, AMGN, CELG, CSCO, EBAY, KLAC, LIFE, LLTC, MCHP, MXIM, SIRI, SRCL, XLNX, XRAY, ADI, LMCA, AVGO, BBBY, CMCSA, ESRX, PCAR, WFM, DISCA, MNST, FAST, ADBE, COST, LBTYA, AMAT, AMZN, BIIB, CERN, CHRW, KRFT, GOOG, LINTA, REGN DTV, SBAC, EXPE, VRTX, SNDK, EQIX, STX, BRCM, MAT, ISRG, INTC

 

Seven-Week Intermediate Term Market Trend: Neutral

5-Day Short Term Market Trend: Neutral