SPY, IWM New All-time Closing High...QQQ Gains After NFLX Gap and Reverse...WHR, ILMN Gap Up...

Eight of nine sectors moved higher on Tuesday…XLB, XLU and XLP were the strongest sectors…XLK was the weakest sector. 

 

Breadth strengthened… as advancers led decliners…2.72 to 1 on the NYSE and 1.21 to 1 on the NASDAQ.

 

Tuesday – strengthened, advancers led

Monday – weakened, decliners led

Friday – weakened, advancers led

Thursday – strengthened, advancers led

Wednesday – strengthened, advancers led

 

 

SPY up 1.01 at 175.41…volume 126.6 million shares

VIX up .17 at 13.33…

TNX down .97 at 25.12…

TLT up 1.19 at 107.89...

XLF up .04 at 20.91 volume 31.6 million shares

 

AAPL down 1.49 at 519.87…on rising volume 14.2 million shares

FB down 1.17 at 52.68…volume 83.1 million shares

 

Technical Commentary: 

SPY +0.58%, DIA +0.47%, IWM +0.26%, QQQ +0.15%.

 

The SPY played catchup up with QQQ and IWM on Tuesday, while the NDX lagged after the NFLX intra-day reversal.  DIA still lags behind below September resistance in a sideways channel.

 

In an unusual reversal NFLX which was up after the close on Monday +40.00, +11.27%  opened higher this morning and reversed closing down -32.46, -9.15%.  This reversal weighed on many other tech stocks and XLK which was the only losing sector.    VMW which was +9.35, +11.31% after the close on Monday finished +2.35, +2.84%. 

 

CREE -11.32, -15.23%, after the close did it for the second straight quarter missing revenues, this time by 1.3 million on 391 million in revenues and was again creemed.

 

LCC reports Wednesday morning BMO.  AKAM after the close.

 

 

Resistance Chart Targets:

QQQ = 81.87, 83.17…closed at 82.45

IWM = 110.96, 112.83…closed at 110.76

SPY = 177.85, 180.99…closed at 175.41

 

 

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 next week.

 

 

Q3 Earnings Reactions

Positive Reactions – 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 – 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 pointed up and is above 80.   

 

____________________

 

Setups 

H Breakout: ATI, CIEN, CLF, NTES, P, QIHU, RAX, SPLK, SSYS, SWI, UAL, V, YOKU, AKAM, DTV, INTC, MNST,  

 

Diagonal Breakout:  LNKD, SWKS, BBBY, FFIV, GILD, MYL, QCOM, YHOO,

 

Bull Flag: A, CNX, CRM, SCTY, SINA, SOHU, STI, X, XONE, YELP, BIDU, FB, GOOG, TXN,

 

Potential Bullish Divergence:  MU, TSLA,  

 

Gap Up: AMGN,  

 

Gap Down:  CREE, BRCM,  

 

Bear Flag: SWK, TPX, SHLD,

 

At Support: MCP, SCSS, ADSK, CSCO,     

 

Moves

New Highs: CMG, DNKN, FSLR, GME, KKD, LCC, SPY, IWM, QQQ, SPWR, TSL, VRSN, AA, AXP, AMZN, CELG, GRMN, SBUX, SIRI, WFM, NUS,

 

Gap Up: WHR, ILMN, LXK

 

Gap Down: ZION, COH, WAT, EMC

 

H&D Breakout: GLD, GLW, TLT, ADBE,

 

Breakout Test: AAPL, PCLN, ROST,

 

Bounce: SWKS, TBT, CMCSA,        

 

MACD Divergence Bounce: 

 

Bear Flag: Z, NTAP,

 

Support Break: GRPN, VECO,

 

 

______________________

 

 

57 of 100 NDX stocks closed higher on Tuesday.

 

Leading NDX 100 stocks included: VRTX, GOLD, REGN, BIIB, DISCA, FOSL, MDLZ, AKAM, AMGN, SIAL

 

Lagging NDX stocks included:  NFLX, STX, NUAN, NTAP, FB, CHKP, WYNN, TXN, BIDU, CSCO

 

Leading stocks > +2% on Tuesday included: ANR, TSL, KKD, SCTY, LCC, ATI, SWI, CMG, TPX, SCSS, JCP, UAL

 

Lagging stocks < -2.0% included: GRPN, ZION, VECO, QIHU, SINA, Z, JNPR, YELP, TBT, X, UNG

 

Stocks to Watch on Wednesday

Holding Above 30 DMA= 76

GRMN, FB, WYNN, AVGO, CTSH, VOD, MXIM, ROST, YHOO, ADBE, DLTR, SNDK, WFM, CHTR, BIDU, SBUX, STX, AMAT, CERN, CMCSA, BBBY, MSFT, XRAY, VRSK, AAPL, HSIC, SPLS, AKAM, ATVI, CELG, FISV, FOSL, GILD, INTC, INTU, KLAC, LINTA, ORLY, PAYX, PCAR, PCLN, SIRI, SRCL, SBAC, WDC, LMCA, FOXA, CHKP, DTV, MNST, VIAB, NFLX, ESRX, GOOG, QCOM, ADP, AMGN, AMZN, BIIB, BRCM, COST, MAT, MCHP, NVDA, SYMC, MDLZ, DISCA, KRFT, CA, ADI, CHRW, EXPD, CTRX, DELL, FFIV, GOLD

 

Moving Above 30 DMA = 6

FAST, LBTYA, MYL, REGN, SIAL, VRTX

 

Moving Below 30 DMA = 2

ALTR, TXN

 

Staying Below 30 DMA

TSLA, ADSK, ISRG, XLNX, EBAY, LLTC, MU, EXPE, SHLD, ALXN, NTAP, EQIX, CSCO, CTXS, NUAN, GMCR

 

Sixteen Week Intermediate Term Market Trend: Up

5-Day Short Term Market Trend: Up