All nine sectors moved lower on Thursday…XLP, XLF and XLB were
the strongest sectors…XLU was the
weakest sector.
Breadth weakened…decliners led
advancers…3.69 to 1 on the NYSE and 2.81 to 1 on the NASDAQ.
Thursday – weakened, decliners led
Wednesday – weakened,
decliners led
Tuesday – strengthened,
advancers led
Monday – weakened,
decliners led
Friday – weakened,
decliners led
SPY down1.56 at 167.62…volume 176.6 million shares
VIX up 1.07 at 17.67…
TNX down .20 at 26.06…
TLT down .17 at 105.79...
XLF down .15 at 19.89…volume 46.6 million shares
AAPL down 6.15 at 483.41…volume 11.5 million shares
FB down 1.10 at 49.18…volume 81.9 million shares
Technical
Commentary:
QQQ – 1.17%,
SPY – 0.92%, DIA –
0.87%, IWM – 0.87%.
DIA fell and closed below Monday’s
short-term support as SPY bounced up from Monday’s low. IWM and QQQ continue to be relatively
stronger finding support above Monday’s lows while closing near Monday’s
close. Uncertainty surrounding the timing
of a budget deal appeared to weigh on traders on Thursday.
The market
is currently pulling back to higher highs in its continuing uptrend. Numerous bull flag, diagonal and horizontal
breakout setups appear on many stock charts on Thursday.
FB -1.09,
-21.8% announced
that it will add advertisements to Instagram, which lifted the stock in
after-hours trading. Bull flag setup on
FB.
CREE +4.50,
+6.56%, SOHU +2.30, +2.86%, KKD +1.20, +6.01% and MU +0.35, +1.98% continued to their recent moves to new
highs.
Twitter (TWTR)
filed its registration statement on Thursday for its IPO.
Though the
markets are consolidating in the face of the congressional deadlock it is
essential to continue to follow your rules.
Resistance Chart Targets:
QQQ = 79.69
SPY = 173.60
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 neutral.
Support Levels
ES = 1,672, 1,660
SPY = 168.33, 167.08,
165.31
QQQ = 78.40, 77.67
IWM = 105.52, 104.57
Q2 Earnings Reactions
Positive Reactions – NKE, BBBY, 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, CTSH, FAST, SIRI, SNDK, STX, CIEN, CNX, P, SCSS, SINA, TPX,
Diagonal Breakout: WDC, CRM,
GLD, WLT,
Bull Flag: AKAM, AMAT,
AMGN, CMCSA, COST, FB, NVDA, TSLA, NKE, SWK, TLT, V,
Potential Bullish
Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support: NUAN,
Moves
New Highs: MU, MYL, SOHU,
YNDX,
Gap Up: FIVE,
Gap Down: ANGI,
H&D Breakout:
Breakout Test:
Bounce: KKD, MFRM,
MACD Divergence
Bounce:
Bear Flag:
Support Break: ADBE, RAX,
______________________
5 of 100 NDX stocks
closed higher on Thursday and one was unchanged.
Leading NDX 100 stocks included: MU, MYL, VRTX
Lagging NDX stocks included: EQIX, BIIB, TSLA, REGN, NFLX, CTXS, EXPE, EXPD,
ISRG, CHRW, FB
Leading stocks > +2% on Thursday
included: CREE, SOHU, FAZ, UAL, ICE
Lagging stocks < -2.0% included: HLF, ESI, GRPN, SSYS, JCP, LDK, VMW,
URE, BBRY, LNKD, Z, CHL, DDD, FAS, MCP, PWRD
Stocks to Watch on Friday
Holding Above 30 DMA= 59
TSLA,
GRMN, PCLN, VIAB, FB, NFLX, WYNN, NVDA, ADSK, AVGO, CTSH, VOD, SBAC, SHLD,
AKAM, BIIB, CELG, MU, MXIM, ROST, YHOO, REGN, FOXA, ADBE, ALXN, DLTR, INTU,
KLAC, SNDK, XLNX, TXN, AMZN, FAST, LINTA, SIRI, WFM, LMCA, EBAY, EXPE, FISV, CHTR, BIDU, MYL, SBUX, STX, AMAT, CERN, CMCSA, MAT, BBBY, DISCA, FOSL, ORLY, SPLS, MSFT,
HSIC, BRCM, DELL, FFIV,
Moving Above 30 DMA = 0
Moving Below 30 DMA = 18
AAPL, AMGN, CHKP, CHRW, EXPD, GILD,
GOOG, LLTC, MCHP, NTAP, PAYX, PCAR, SIAL, SRCL, XRAY, LBTYA, VRSK, WDC
Staying Below 30 DMA
ALTR,
ATVI, COST, EQIX, INTC, MDLZ, ADP, DTV, CA, QCOM, ADI, CSCO, CTXS, KRFT, NUAN,
GMCR, GOLD, ESRX, VRTX, CTRX, SYMC, ISRG, MNST
Thirteen Week Intermediate
Term Market Trend: Up
5-Day Short Term Market
Trend: Neutral
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