SPY Gives Back Gains after FOMC Minutes...Solar Stocks Sizzle Again...GRMN, WDC, YOKU Up...

All nine sectors moved lower on Wednesday…Stocks drifted before the FOMC minutes were released at 2 pm ET and then plunged to lows and rallied to daily highs before selling off during the final 60 minutes of trading, closing near lows…XLK, XLE and XLV were the strongest sectors…XLU was the weakest sector.  

 

Breadth weakened… decliners led advancers…2.61 to 1 on the NYSE and 2.09 to 1 on the NASDAQ…

 

Wednesday – weakened, decliners led

Tuesday – strengthened – advancers led

Monday – weakened, decliners led

Friday – strengthened, decliners led

Thursday – weakened, decliners led

 

 

SPY down 1.02…volume 159.4 million shares

VIX up 1.03…at 15.94…

TNX up 0.41 at 28.55…

TLT down 1.13 at 102.13...

XLF down .14 at 19.81…volume 46.8 million shares

 

AAPL up 1.29 at 502.36…volume 12 million shares…spinning top

FB down .09 at 38.32…volume 46 million shares…doji, close above 10DMA

 

Technical Commentary:

 

QQQ -0.34%, IWM -0.61%, SPY -0.62%, DIA -0.74%.  

 

Broad markets pulled back following the release of the FOMC minutes.  The NDX closed lower on weakness in CMCSA, INTC, SPLS, CSCO, EBAY and AMZN while NDX strength came from AAPL, GILD and GOOG. 

 

Solar stocks TSL, CSIQ, SPWR, JKS and JASO were sizzling for the second straight day on Wednesday. 

 

Short-term market posture continues defensive.

Support Levels

ES = 1,629, 1,611

SPY = 163.35, 161.55

 

 

Q2 Earnings Reactions

Positive Reactions – 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 – 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: NFLX, GRMN, FB, TSLA, WYNN, CNX, GMCR,

 

Diagonal Breakout: Z, SWI, ZION, PWRD, AKAM, AMGN, AMZN, ATVI, BBBY, CMCSA, ESRX, FAST, FFIV, INTC, SBUX, SIRI, SYMC, XLNX, ALK, ATI, BAC, CRM, DNKN, ESI, FAS, GS, JNPR, RAX, STI,

 

Bull Flag: NTES, WLT, BIDU, MU, MYL, NTAP, NVDA, PCLN, QCOM, TXN, ANR, BBRY, CLF, GLD, LVS, RCL, SINA, SSYS,

 

Potential Bullish Divergence:  MAT, YHOO, ANGI, FIVE, FSLR, SOHU,

 

Gap Up: 

 

Gap Down: 

 

Bear Flag:  GOOG, MNST, UNG

 

At Support: TLT, COST, EBAY, MSFT, CREE, SCTY, SPLK, UAL, VECO

 

Moves

New Highs:  

 

Gap Up:

 

Gap Down:

 

H&D Breakout: TSL, GRMN, GMCR, SHLD, CELG, CTSH, GILD

 

 

Breakout Test: 

 

Bounce: TSL, WDC, YOKU, GRPN, YELP, TBT, ROST, SNDK

 

MACD Divergence Bounce: STX, SCSS, MFRM, TPX

 

Bear Flag:  

 

Support Break:

 

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24 of 100 NDX stocks closed higher on Wednesday.

 

 

Leading NDX 100 stocks included: GRMN, SHLD, CTSH, WDC, CELG, GILD, PCLN, BIDU, BIIB, STX

 

Lagging NDX stocks included:  SPLS, EXPE, GOLD, CMCSA, EBAY, ADI, DTV, FFIV, INTC, LLTC

 

Leading stocks > +2% on Wednesday included: TSL, YELP, CROX, V, GRPN, DDD, DECK

 

Lagging stocks < -2.0% included: CDE, ANF, RVBD, JCP, TPX, BBRY, MOS, NTES, CLF, ESI, GES, JNPR, FCX

 

Stocks to Watch on Thursday

Holding Above 30 DMA= 26

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

 

Moving Above 30 DMA = 2

CTSH, SHLD

 

Moving Below 30 DMA = 9

ADP, ATVI, CA, CHKP, FFIV, ORLY, PAYX, SPLS, TXN

       

Staying Below 30 DMA

ADSK, INTU, SBUX, SIAL, VOD, HSIC, MDLZ, ALTR, ALXN, AMGN, CELG, CSCO, EBAY, EXPD, KLAC, LIFE, LLTC, MCHP, MXIM, SIRI, SRCL, XLNX, XRAY, YHOO, ADI, WDC, LMCA, AVGO, BBBY, CMCSA, DLTR, ESRX, GILD, PCAR, WFM, DISCA, VRSK, MNST, FAST, ADBE, COST, LBTYA, AMAT, AMZN, BIIB, CERN, CHRW, KRFT, GOOG, LINTA, REGN DTV, SBAC, EXPE, VRTX, SNDK, EQIX, STX, MSFT, BRCM, MAT, ISRG, INTC

 

Six-Week Intermediate Term Market Trend: Neutral

10-Day Short Term Market Trend: Down