IWM Breaks Out to All-time High Close...QQQ Follows...AAPL, AMZN, BIDU, FB, GOOG, NFLX, PCLN, QCOM Gain...YELP, Z, P, FB Rise...

Three of nine sectors moved higher on Tuesday…XLY, XLK and XLI were the strongest sectors…while XLU was the weakest sector. 

Breadth strengthened on the NASDAQ…advancers led decliners…1.29 to 1 on the NYSE and 1.79 to 1 on the NASDAQ where advancers led decliners.

Tuesday – strengthened, advancers led

Monday – weakened, mixed

Friday – weakened slightly, advancers led

Thursday – strengthened, advancers led

Wednesday – strengthened slightly, decliners led

SPY up .05 at 180.68…volume 86.9 million shares

VIX up .02 at 12.81…

TNX down .45 at 26.96…

TLT up .39 at 104.60...

XLF down .02 at 21.50 volume 27.8 million shares, pause

AAPL up 9.66 at 533.40…volume 14.3 million shares, diagonal breakout, horizontal breakout setup

FB up 1.07 at 45.89…volume 81.9 million shares, divergence bounce

Technical Commentary: 

IWM + 0.74%, QQQ + 0.52%, SPY + 0.03%, DIA – 0.07%.

IWM and QQQ led Tuesday’s rally another sign big money is still expect this bull market to move higher with money rotating into the growth segment of the market.  SPY and DIA were near unchanged.  Look for volume to lighten going into Wednesday afternoon ahead of the Thanksgiving Holiday on Thursday.  Friday is a half day of trading.

AAPL, AMZN, BIDU, FB, GOOG, NFLX, PCLN and QCOM each had strong gains on Tuesday for the first time in many trading sessions.

Chart Signals is grateful for all of the amazing blessings we enjoy in America and we hope that you and your family will have a great and safe Thanksgiving Holiday.

Positive housing numbers this morning sent XHB and home building stocks LEN, DHI, PHM higher.  Another sign that the economy continues to move forward.

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Social media stocks bounced led by moves in YELP, Z, ANGI, YNDX, P, LNKD, TWTR, YOKU, SINA and FB.

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Solar stocks JKS, SPWR and CSIQ started to heat on Tuesday while FSLR and TSL recovered from early morning selloffs.

MU +0.45, +2.27% hit a new high following Monday’s breakout test.

Are you reading the market correctly?

Do you keep listening to someone that is not reading the market correctly?

Albert Einstein: “Insanity: doing the same thing over and over again expecting different results.”

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.”

With Friday’s breakout new short term chart targets are established.

Chart Targets:

SPY = 182.06, 183.02…

QQQ = 85.14, 85.77…

IWM = 112.83, 114.39…

Short-term SPY posture is up.

Support Levels

ES = 1,774, 1,736

SPY = 177.64, 174.76

QQQ = 83.48, 82.77, 81.37

IWM = 107.93

Q3 Earnings Reactions

Positive Reactions – SPLK, MRVL, GMCR, JCP, LZB, JKS, BRCD, TSN, YOKU, SINA, NTAP, SLXP, PCLN, NVDA, GRPN, AWAY, PRU, TPX, TSO, CTSH, FSLR, TRMB, MDVN, NATI, SPR, ONNN, EXPE, CRR, HAR, GTI, ATML, THOR, TRN, FLT, MCHP, ITT, DICSA, ANR, SWKS, FB, CMCSA, GILD, DWA, LVLT, EA, SEE, SPW, TFX, JCI, 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 – ROST, GME, BBY, CPB, JEC, TSL, CRM, CSCO, RAX, MNST, QCOM, SCTY, IPGP, AIG, BRKR, HME, NEM, XLS, Z, NIHD, AVP, WTW, ROVI, GRMN, JDSU, OSK, CNW, ITRI, CTRX, KRFT, GRMN, MYL, DLR, XCO, WU, LNKD, IACI, MSM, INGR, HTS, VRTX, AAPL, PMCS, MWV, SOHU, AGNC, AGCO, PCL, GT, CMI, VSH, ALSN, ROP, EW, MRK,  RYN, RMD, NCR, KBR, FSL, ESRX, EMN, FIO, SIRI, 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

The Market Forecast Green Line is above 80.   

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Setups 

H Breakout: AAPL, BBBY, MAT, MNST, TXN, XLNX, BX, DNKN, GS, V

Diagonal Breakout: AMAT, WYNN, CIEN, CNX, TLT, CSIQ

Bull Flag: ADSK, FSLR, A, CBI, CME, GMCR, ILMN, JKS, P, VIPS, CBOE, ICE, NDAQ

Potential Bullish Divergence: TRLA

Gap Up:

Gap Down:

Bear Flag: CREE,

At Support: SPWR, TSL

C- Pattern:

Moves

New Highs: AMZN, GOOG, MYL, PCLN, QCOM, BAC, ABC, AXP, DECK, DIS, LBTYA, PFG, RTN, TPX

Gap Up: NVDA, TIF

Gap Down: NUAN,

H Breakout: DTV, ESRX, YNDX, DUST, NKE, QQQ, IWM, QCOM

Breakout Test: C, SPY

Bounce: ANGI, LNKD, Z, BA, CSIQ, CTSH, LNG, SPLK, SPWR, BIDU, LNKD

MACD Divergence Bounce: YELP, CTRP, FB, SINA, SNDK

Bear Flag:  

Support Break:

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64 out of 100 NDX stocks closed higher on Tuesday and one was unchanged.

Leading NDX 100 stocks included: BIDU, MNST, FB, AVGO, MY, LMCA, AAPL, SNDK, LBTYA

Lagging NDX stocks included: NUAN, GMCR, ISRG, BIIB, SHLD, ATVI, GOLD, SYMC, SPLS

Leading stocks > +2% on Tuesday included: TIF, YELP, QIHU, Z, ANGI, SPWR, YNDX, P, LNKD, SPLK, TWTR, YOKU, SINA, SCSS

Lagging stocks < -2.0% included: ANR, PWRD, WLT, TSL

Stocks to Watch on Wednesday

Holding Above 30 DMA= 58

CTSH, VOD, ADBE, SBUX, MSFT, XRAY, AAPL, HSIC, FISV, INTU, LINTA, PAYX, WDC, CHKP, GOOG, ADP, AMZN, MAT, DISCA, CA, COST, LLTC, TXN, ADI, MCHP, MU, EXPE, NFLX, ADSK, ESRX, ALXN, GILD, MYL, PCLN, MDLZ, MNST, SHLD, YHOO,  QCOM, NTAP, SRCL, SIAL, CELG, BIIB, GRMN, CERN, CMCSA, CTXS, LBTYA, GMCR, BBBY, DTV, STX,  REGN, CHTR, NVDA, WYNN, LMCA

Moving Above 30 DMA = 4

BIDU, FOSL, KLAC, PCAR

Moving Below 30 DMA = 2

ATVI, ISRG

Staying Below 30 DMA

NUAN, INTC, ROST, SYMC, AMGN, DLTR, GOLD, SNDK, SBAC, CHRW, BRCM,  SIRI, EQIX, FOXA, EBAY, SPLS, AVGO, CSCO, VIAB, AMAT, VIP, WFM, CTRX, KRFT,  VRSK, TSLA, EXPD, FAST, VRTX, FB, MXIM, AKAM, ORLY, FFIV, ALTR, XLNX

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Up