Stocks Advance...Many Bounce...Many Moving From Bull Flag Setups To Horizontal Resistance Setups...YHOO All-Time High Up 4.50%...BBBY Up 4.47%...REGN Up 4.55%...

Seven of nine sectors moved higher on Thursday…XLY, XLB and XLP were the strongest sectors…XLU was the weakest sector. 

 

Breadth strengthened…advancers led decliners…1.71 to 1 on the NYSE and 1.46 to 1 on the NASDAQ.

 

Thursday – strengthened –advancers led

Wednesday – weakened, mixed

Tuesday – strengthened, advancers led

Monday – mixed, decliners led

Friday – weakened, decliners led

 

 

SPY up .65 at 169.69…volume 77.1 million shares

VIX up .05 at 14.06…

TNX up .29 at 26.43…

TLT down .75 at 106.30...

XLF unchanged at 20.12…volume 28.8 million shares

 

AAPL up 4.69 at 486.22…volume 8.4 million shares

FB up .93 at 50.39…volume 98.1 million shares

 

Technical Commentary: 

DIA + 0.35%, SPY + 0.38%, IWM + 0.55%, QQQ + 0.78%.

 

With today’s gains across the broad market, many stocks had a bounce in the market and several made all time new highs.  We saw a bulk of the stocks that were in bull flag set-ups move to a horizontal resistance set-up and also a diagonal set-up.

 

BBBY gapped up today breaking its horizontal resistance of early August gaining 3.32 or 4.47%.  EBAY had a bounce today up 2.43 or 4.48% and is approaching its horizontal resistance of mid-June.  REGN also bounced today and rose 13.30 or 4.55%

and is closing in on its September 18 all-time high and also its horizontal resistance.

 

YHOO made a bull-market closing high at 32.75 up 1.41 or 4.50% with volume of 39.2 million shares.

 

Breakout Chart Targets:

QQQ = 78.70, 79.58

IWM = 110.91

SPY = 169.93, 171.56

 

Remember it is big money that creates and sustains the trend.  As Granville once wrote, “technical analysis is the art of tracking the market, following the footsteps of the ‘smart money’ crowd.  The ‘smart money crowd’ is no mysterious ‘THEY.’  It is simply a collection of people who are reading the market correctly, seeing through the maze, unconfused by this hall of mirrors.”

 

Short-term market posture is neutral.

Support Levels

ES = 1,660

SPY = 167.30

 

 

Q2 Earnings Reactions

Positive Reactions – ULTA, FIVE, CIEN, SPLK, CRM, GES, DSW, ADSK, ROST, GME, JRCC, RAX, SSYS, TMUS, SGMS, FWLT, MNST, GRPN, TSLA, AGU, BOFI, FOSL, ADM, MGM, 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 pointed down. 

 

____________________

 

Setups 

H Breakout: AAPL, ADBE, AKAM, AMZN, CELG, CTSH, NFLX, ROST, SBUX, SNDK, WFM, CIEN, CREE, CRM, DDD, ESI, GLW, LNKD, RAX, SCSS, SOHU, SPLK, TPX, UAL, VECO, YELP, YNDX, YOKU,

 

Diagonal Breakout: ATVI, MYL, SYMC, WDC, QIHU, WLT,

 

Bull Flag: AMGN, COST, GOOG, INTC, MAT, ATI, CNX, GS, SCTY, SPY, Z,

 

Potential Bullish Divergence:  

 

Gap Up:

 

Gap Down: 

 

Bear Flag:

 

At Support: MNST, SWI,

 

Moves

New Highs: BIDU, FB, PCLN, TSLA, WYNN, YHOO, LVS,

 

Gap Up: BBBY,    

 

Gap Down:   

 

H&D Breakout: ADSK, SINA,    

 

Breakout Test:

 

Bounce: CMCSA, EBAY, GILD, MSFT, MU, SIRI, DNKN, GRPN, TBT,

 

MACD Divergence Bounce: 

 

Bear Flag:  

 

Support Break:  

 

______________________

 

 

78 of 100 NDX stocks closed higher on Thursday and one was unchanged.

 

Leading NDX 100 stocks included: REGN, YHOO, EBAY, BBBY, DISCA, ADSK, CELG, MU, SIRI, ALXN

 

Lagging NDX stocks included:  WDC, CSCO, STX, BRCM, MNST, INTC

 

Leading stocks > +2% on Thursday included: GRPN, DECK, SOHU, LNKD, JCP, SSYS, CRM, NKE

 

Lagging stocks < -2.0% included: XONE, LDK, CDE

 

Stocks to Watch on Friday

Holding Above 30 DMA= 81

TSLA, GRMN, PCLN, VIAB, FB, NFLX, QCOM, WYNN, DELL, NVDA, ADSK, AMGN, AVGO, CTSH, GILD, VOD, SBAC, SHLD, AKAM, ALTR, BIIB, CELG, EXPD, MU, MXIM, NTAP, ROST, YHOO, REGN, VRSK, FOXA, ADBE, ADP, ALXN, CHRW, DLTR, INTC, INTU, KLAC, SNDK, XLNX,TXN, AMZN, BRCM, FAST, GOOG, LINTA, SIRI, WFM, XRAY, LMCA, EBAY, EXPE, FISV, CHTR, BIDU, COST, MYL, PAYX, PCAR, SBUX, STX, AMAT, CA, CERN, LLTC, SIAL, ADI, CMCSA, MDLZ, LBTYA, MAT, MCHP, BBBY, EQIX, DISCA, FOSL, ATVI, ORLY, SPLS, SRCL,

 

Moving Above 30 DMA = 4

DTV, FFIV, HSIC, MSFT

 

Moving Below 30 DMA = 2

CSCO, WDC

 

Staying Below 30 DMA

AAPL, CHKP, CTXS, KRFT, GMCR, NUAN, GOLD, ESRX, VRTX, CTRX, SYMC, ISRG, MNST

 

Thirteen Week Intermediate Term Market Trend: Up

4-Day Short Term Market Trend: Neutral