Five out of nine sectors moved higher on Wednesday…XLU,
XLK and XLF were the strongest sectors…XLY
was the weakest sector.
Breadth strengthened…decliners led
advancers…1.05 to 1 on the NYSE and 1.30 to 1 on the NASDAQ.
Wednesday – strengthened, decliners led
Tuesday – weakened,
decliners led
Monday – weakened,
decliners led
Friday – strengthened,
advancer led
Thursday – weakened, decliners
led
SPY up .12 at 165.60…volume 168.6 million shares
VIX down .74 at 19.60…
TNX up .14 at 26.50…
TLT down .85 at 105.32...
XLF up .06 at 19.64 volume 78.7 million shares
AAPL up 5.65 at 486.59…volume 10.7 million shares
FB down .37 at 46.77…volume 147.1 million shares
Technical
Commentary:
QQQ – 0.31%,
IWM – 0.40%, SPY +
0.07%, DIA +
0.17%.
Earnings season is underway with positive
reactions from AA and COST and a negative reaction from
FAST. MU reports on Tuesday after
the close.
HPQ +1.85,
+8.92% formed a
mega white candle on triple recent volume.
Stocks moved lower and found support and
SPY and QQQ formed hammer candles. In the wake of Washington’s
excuses the six strong sectors XLB, XLE, XLI, XLK, XLV and XLY broke the
support of their bull flag on Tuesday and came back into their three month
trading range.
IWM fell to its 61.8% Fib level and bounced forming a red candle
with a lower shadow the size of its red body. QQQ penetrated its 61.8% Fib support
and within 11 cents of its 200% price target of Tuesday’s break of Sep
30 support. SPY hit a 78.6% retracement
of it Aug – Sep uptrend and also hit its 200% price target of
Tuesday’s break of Oct 3 support. DIA completed a 100% retracement of
its recent up trend.
While the
markets look for the end of the uncertainty caused by current fiscal issues,
the broad markets may be establishing the range of the next three weeks as
focus shifts from the broad market to individual earnings reports. Look for big moves on individual stocks both
up and down as companies report over the next three weeks.
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 down.
Support Levels
ES = 1,672, 1,660, 1,641,
1,681
SPY = 168.33, 167.08,
165.31, 164.62
QQQ = 78.40, 77.36,
76.79, 75.99
IWM = 105.82, 104.85,
103.90, 102.94
Q3 Earnings Reactions
Positive Reactions –
COST, AA
Negative Reactions –
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 down.
____________________
Setups
H Breakout: KKD, SCSS, TBT,
Diagonal Breakout: ALK, ATI, JNPR, QIHU, SINA, V, AAPL, ADBE, SYMC,
TSLA, TXN,
Bull Flag: A, CIEN, CMG,
CNX, CREE, FSLR, NKE, SOHU, TSL, VECO, X, BIDU, CERN, CMCSA, CTSH, FB, GRMN, MSFT,
MU, MYL, PCLN, SHLD, SNDK, STX, WYNN, YHOO,
Potential Bullish
Divergence: BAC, C, CLF, SSYS, STI, SWI,
SWKS, UAL, Z, ZION
Gap Up:
Gap Down:
Bear Flag: MNST,
At Support: TLT,
Moves
New Highs:
Gap Up:
Gap Down:
H&D Breakout:
Breakout Test:
Bounce:
MACD Divergence
Bounce:
Bear Flag:
Support Break:
______________________
25 of 100 NDX stocks
closed higher on Wednesday and two were unchanged.
Leading NDX 100 stocks included: COST, ISRG, HSIC,
MU, AAPL
Lagging NDX stocks included: GMCR, FAST, SHLD, NFLX, TSLA, VRTX, ALXN,
LINTA, REGN
Leading stocks > +2% on Wednesday
included: LDK, NTES, SINA, ANF
Lagging stocks < -2.0% included: DDD, UCO, TSL, GRPN, RBVD, JDSU, MCP,
TPX, ZAGG
Stocks to Watch on Thursday
Holding Above 30 DMA= 29
GRMN, FB,
WYNN, ADSK, AVGO, CTSH, VOD, SHLD, MU, MXIM, ROST, YHOO, ADBE, DLTR, SNDK, WFM,
CHTR, BIDU, MYL, SBUX, STX, AMAT, CERN, CMCSA, BBBY, MSFT, XRAY, VRSK, ISRG
Moving Above 30 DMA = 3
AAPL, HSIC, SPLS
Moving Below 30 DMA = 11
CELG, FAST, FFIV, INTU, KLAC, NVDA,
PCLN, SIRI, REGN, LMCA, TSLA
Staying Below 30 DMA
AKAM, ALXN, AMZN, BIIB,
BRCM, DELL, EBAY, EXPE, FOSL, LINTA, ORLY, SRCL, XLNX, TXN, VIAB, SBAC, WDC,
KRFT, NFLX, FOXA, AMGN, CHKP, FISV, GILD, MAT, QCOM, SIAL, DISCA, LBTYA, CHRW,
EXPD, GOOG, LLTC, MCHP, NTAP, PAYX, PCAR, ALTR, ATVI, COST, EQIX, INTC, MDLZ,
ADP,DTV, CA, ADI, CSCO, CTXS, NUAN, CMCR, GOLD, ESRX, VRTX, CTRX, SYMC, MNST
Sixteen Week Intermediate
Term Market Trend: Up
5-Day Short Term Market
Trend: Down
No comments:
Post a Comment