All nine sectors moved lower on Wednesday…however…XLK,
XLF and XLI were the strongest
sectors…XLP was the weakest
sector.
Breadth weakened… as decliners
led advancers…2.43 to 1 on the NYSE and decliners led advancers 2.76 to 1 on the NASDAQ.
Wednesday – weakened, decliners led
Tuesday – strengthened,
advancers led
Monday – weakened,
decliners led
Friday – weakened,
advancers led
Thursday – strengthened,
advancers led
SPY down .88 at 176.29…volume 140 million shares
VIX up .24 at 13.65…
TNX up .20 at 25.27…
TLT down .65 at 107.41...
XLF down .08 at 20.79 volume 35.4 million shares
AAPL up 8.22 at 524.90…volume 12.6 million shares
FB down .39 at 49.01…volume 127 million shares
Technical
Commentary:
QQQ – 0.10%,
DIA – 0.40%, SPY
– 0.50%, IWM – 1.37%.
The SPY
after making a new intra-day high (within 47 cents of its 162.8% chart target)
in the first ten minutes of trading sold off forming a bearish engulfing
pattern on Wednesday. The SPY did
rally from daily lows during the last 90 minutes of trading. Traders with stops under Tuesday’s low may
have been taken out with big profits today.
QQQ and IWM also formed bearish engulfing
patterns. QQQ also made a new
intra-day high before closing lower. IWM
did break and close below Tuesday’s low.
QQQ has been trading in the area of its 200% price target over
the past four days and IWM has been trading in the area of its 161.8%
target for 8 days.
Chart Signals has been alerting readers to, “Move profit protective stops
according to your rules,” since Monday.
DIA sold off at horizontal resistance
forming a dark cloud candle pattern.
Notwithstanding
Wednesday’s pullback the uptrend continues.
Today’s price action could be a one day pause or turn into a multi-day
flag pullback to a higher low. Continue to move profit
protective stops according to your rules.
CMCSA lower, GRMN higher reported
earnings before the open. After the
close EXPE +9.40, +18.82% and SBUX -2.03, -2.51% reported earnings.
FB reported better than expected
earnings after the
close and traded more than $6 higher but then reversed after forward looking
comments and finished after-hours trading 2 cents lower.
Chart Targets:
QQQ = 83.17…
IWM = 110.96, 112.83…
SPY = 177.85, 180.99…
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 SPY up.
Support Levels
ES = 1,726
SPY = 172.76
QQQ = 81.87, 79.76,
78.40
IWM = 107.83
Earnings to Watch
Earnings releases continue with a large list of major companies reporting
this week including:
Monday – AAPL,
STX, BIIB, HLF
Tuesday – X, LNKD,
YELP, BIDU, FISV, GILD, VRTX, XRAY
Wednesday – FB, GRMN, CMCSA, EXPE, KRFT, MCHP, SBUX
Thursday – CTRX, DISCA, MYL
Q3 Earnings Reactions
Positive Reactions – GILD,
DWA, LVLT, EA, SEE, SPW, TFX, X, XRAY, XYL, JLL, PBI, ALR, HUN, ACT,
DECK, AMZN, MSFT, FLS, AVY, ALXN, WOOF, COG, BA, CLGX, ESI, EQIX,
WLL, TSCO, RRD, PHM, RCL, ALXN, APOL, BCR, NDAQ, NSC, WHR, ILMN,
NUS, GNTX, LXK, DD, VFC, CMG, GOOG, BHI, GE, KSU, MS, SLB, STI, LVS, VZ,
SNDK, NUE, BTU, AXP, KEY, STLD, URI, USB, INTC, JNJ, SCHW, COST,
AA
Negative Reactions – DLR,
XCO, WU, LNKD, IACI, MSM, INGR, HTS, VRTX, AAPL, PMCS, MWV, AGNC, AGCO, PCL,
GT, CMI, VSH, ALSN, ROP, EW, MRK,
RYN, RMD, NCR, KBR, FSL, ESRX, EMN, FIO, CAM, TKR, SYMC, CVA,
CDNS, AKAM, XRX, CRI, ORLY, CAT, NFLX, COH, ZION, WAT, EMC, UTX, TXN,
HON, ISRG, GS, UNP, UNH, EBAY, IBM, XLNX, SCSS, SWK, MU,
FAST
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 above
80.
____________________
Setups
H Breakout: BBBY, BIDU, BRCM, COST, FAST,
QCOM, SBUX, STX, WDC, WYNN, ANGI, FAS, LVS, RAX, SPLK, SSYS, UAL,
Diagonal Breakout: ADSK,
EBAY, MYL, XLNX, YHOO, IBM, QIHU, TPX,
Bull Flag: CMCSA, MNST,
WFM, ATI, RCL, TLT,
Potential Bullish
Divergence:
Gap Up: EXPE
Gap Down: SBUX
Bear Flag:
At Support:
Moves
New Highs: ROST, DDD,
Gap Up: GILD, DWA, LVLT,
EA, SEE, LSI, SPW, TFX
Gap Down: DLR, XCO, WU,
IACI, INGR, HTS,
H&D Breakout:
Breakout Test:
Bounce:
MACD Divergence
Bounce:
Bear Flag:
Support Break: VECO,
YELP,
______________________
24 out of 100 NDX
stocks closed higher on Wednesday.
Leading NDX 100 stocks included: GILD, BIDU, STX,
SYMC, XRAY, AAPL, SBUX, GOLD, ALXN
Lagging NDX stocks included: VRTX, SHLD, EQIX,
TSLA, NFLX, ADP, CELG, FOXA, REGN, SPLS
Leading stocks > +2% on Wednesday
included: WLT, SSYS, ANR, JCP, ANGI, DDD, SCSS
Lagging stocks < -2.0% included: LNKD, SCTY, TSL, BX, SPWR, P, RAX,
GRPN, NTES, VECO, X, GLW, FIVE, YELP
Stocks to Watch on Thursday
Holding Above 30 DMA= 68
GRMN, WYNN,
AVGO, CTSH, VOD, ROST, ADBE, SNDK, WFM, CHTR, BIDU, SBUX, STX, AMAT, CERN,
CMCSA, BBBY, MSFT, XRAY, VRSK, AAPL, HSIC, SPLS, FISV, FOSL, GILD, INTC, INTU,
KLAC, LINTA, PAYX, PCLN, SBAC, WDC, LMCA, FOXA, CHKP, DTV, MNST, VIAB, GOOG,
ADP, AMGN, AMZN, BIIB, MAT, MDLZ, DISCA, KRFT, CA, CHRW, EXPD, CTRX, GOLD,
SIAL, LBTYA, ALXN, COST, DELL, FAST, QCOM, BRCM, LLTC, TXN, ADI, MCHP, MU, SHLD
Moving Above 30 DMA = 0
Moving Below 30 DMA = 8
CELG, DLTR, ISRG, VRTX, YHOO, LBTYA,
NFLX, CHTR
Staying Below 30 DMA
MXIM,
SRCL, EQIX, ESRX, AKAM, ORLY, SIRI, FFIV, MYL, NVDA, SYMC, ALTR, TSLA, ADSK, XLNX, EBAY, EXPE, NTAP,
CSCO, CTXS, GMCR, NUAN
Sixteen Week
Intermediate Term Market Trend: Up
5-Day Short Term Market
Trend: Up
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