IWM, QQQ New High Close...Dow Falls on JNJ, TRV and VZ EPS Reaction...IBM Down in After-hours...FB, MU, GILD, TSLA, PCLN and AAPL Gain as NDX Gains...

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

Breadth strengthened as advancers led decliners 1.89 to 1 on the NYSE and 1.65 to 1 on the NASDAQ.

Tuesday – strengthened, advancers led

Monday – holiday

Friday – weakened, decliners led

Thursday – weakened, mixed

Wednesday – weakened, advancers led

SPY up .55 at 184.18 volume 88.4 million shares, below average volume, bull flag

VIX up .43 at 12.87… did not confirm

TNX down .02 at 28.25…

TLT up .08 at 105.56...

XLF up .02 at 21.95 volume 41.5 million shares, bull flag

AAPL up 8.40 at 549.07 volume 11.7 million shares

FB up 2.21 at 58.51…volume 48.6 million shares, ascending triangle bounce

Technical Commentary: 

QQQ +0.76%, IWM +0.60%, SPY +0.30%, DIA -0.21%.

IWM and QQQ each made a new high close on Tuesday.  QQQ rose on the strength of big moves in AAPL, GILD, FB, GOOG, AMZN, BIIB, PCLN, EBAY and QCOM.

The Dow was down as weak earnings reaction included three Dow stocks JNJ -1.03, -1.08%, TRV -1.47, -1.70%, VZ -0.65, -1.34% and HAL -0.88, -1.74% which released earnings before the open.  AMD -0.49, -11.75%, IBM -5.83, -3.09% and XLNX -1.77, -3.72% fell in after-hours trading.

Positive earnings reactions included BHI +2.59, +4.78%, DAL +1.01, +3.25% and RF +0.29, +2.74% gained after releasing earnings before the open.  CA +1.02, +2.98% and CREE +1.66, +2.64% gained in after-hours trading on Tuesday.

The weight of the technical evidence still favors the uptrend. Trade the trend in this week’s holiday shortened trading week and be mindful of when individual stocks are reporting earnings.  Earning releases increase over the next two weeks.

The intermediate-term trend is still up, while the short-term trend is neutral.

Trade with the trend, move your protective stops.  Continue to follow your rules.

Remember it is big money that creates and sustains the trend.  As Granville 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 up trend Chart Targets:

SPY = 184.69, 186.76, 188.04…

QQQ = 88.74, 89.38, 90.25…

IWM = 116.70, 118.54…

Q4 earnings season is underway.

Monday – holiday

Tuesday – AMD, BHI, CA, CREE, DAL, HAL, IBM, JNJ, RF, TXN, TRV, VZ, XLNX

Wednesday – ABT, ATI, COH, EBAY, FFIV, FCX, NFLX, SNDK, USB, URI, UTX, WDC

Thursday – ALK, ALTR, BAX, ETFC, ISRG, JCI, JNPR, KEY, KLAC, LMT, MXIM, MCD, MSFT, LUV, SBUX, UAL, UNP,

Friday – HON, KSU, KMB, PG, SWK, STT

Q4 Earnings Reactions

Positive Reactions – BHI, DAL, RF, MS, SLB, STI, AXP, SWKS, BAC, LLTC, WEN, MON, MU, STZ, APOL

Negative Reactions – HAL, JNJ, TRV, VZ, GE, COF, INTC, UNH, C, GS, CSX, FAST, AA, FDO, BBBY, SCHN,

Reversal of Initial Reaction – FAST, FDO, AA

The Market Forecast Green Line is above 80.

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Setups

H Breakout: ANGI, RAX, SPY, AMZN, FB, GRMN, TXN,

Diagonal Breakout: DDD, DRYS, FSLR, GRPN, KKD, SOHU, TWTR, UNG, YNDX, AAPL, BIDU,

Bull Flag: BAC, CSIQ, FAS, LNKD, MFRM, MS, P, RCL, SCTY, SFUN, SPWR, SWI, SWKS, TSL, VRSN, YOKU, Z, AKAM, CMCSA, GMCR, MU,

Potential Bullish Divergence: WFM,  

Gap Up: CREE,

Gap Down: AMD, IBM,

Bear Flag:  FSLR, GME, SCSS,  

At Support: ANR, ATI, C, DDD, GLD, MCP, SINA, SSYS, TPX, X, CTSH, INTC, NFLX, ROST, YHOO,

C- Pattern: GOGO,

Is GOGO ready to Go?  After a 30%+ pullback over the past six weeks and a MACD histogram bullish divergence bounce and a potential C-pattern setup, is GOGO ready to move to the upside?

(click image to enlarge)

Moves

New Highs:  A, AAL, BX, CRM, DAL, ESI, GLW, IWM, JNPR, LVS, SPLK, STI, UAL, V, YELP, ZION, ADSK, DTV, ESRX, FFIV, GILD, GOOG, NTAP, PCLN, QCOM, STX, TSLA, WDC, WYNN,  

Gap Up: BBRY,           

Gap Down: SNDK,

H Breakout: QIHU, PCLN,

Diagonal Breakout: CIEN,

Breakout Test: ADBE,

Bounce: NTES, TLT, UNG, AMZN, CELG, EBAY, FB, FFIV, MNST, TXN,

MACD Divergence Bounce:  GOGO,

Bear Flag: XONE, COST,

Support Break: WLT, SBUX, TRIP,

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54 out of 100 NDX stocks closed higher on Friday and two were unchanged.

Leading NDX 100 stocks included: BIIB, VRTX, GOLD, GILD, FB, TSLA, ILMN, MU, PCLN, ISRG

Lagging NDX stocks included: EXPE, TRIP, SNDK, MDLZ, TSCO, SBUX, WYNN, DLTR, DISH, MAT

Leading stocks > +2% on Tuesday included: BBRY, QIHU, GOGO, CIEN, ZION, SCSS, DAL, ANGI, UNG, CSIQ, SSYS, SPLK, SWKS, AAL

Lagging stocks < -2.0% included: WLT, ATI, DDD, CLF, MCP, FIVE, X, ANR, MS

Stocks to Watch on Wednesday

Holding Above 30 DMA= 70

CTSH, WDC, GOOG, ILMN, LLTC, EXPE, ADSK, ESRX, ALXN, SIAL, CMCSA, GMCR, STX, DTV, BRCM, WYNN, FB, AVGO, INTC, EQIX, ORLY, ADBE, AKAM, CA, CHKP, FFIV, PCAR, SNDK, VRTX, XLNX, CTRX, KRFT, AMAT, CSCO, SBAC, CHTR, HSIC, SIRI, AMGN, ISRG, MU, MYL, BIIB, CHRW, EXPD, ADP, ALTR, AMZN, CTXS, EBAY, GILD, INTU, MXIM, NVDA, QCOM, SRCL, VOD, TXN, REGN, TSLA, NXPI, CERN, GRMN, NTAP, PCLN, SYMC, CELG, GOLD, FAST

Moving Above 30 DMA = 1

ADI

Moving Below 30 DMA = 4

LBTYA, MDLZ, TRIP, VIP

Staying Below 30 DMA

AAPL, FISV, KLAC, VIAB, YHOO, LINTA, DISH, TSCO, BIDU, ATVI, PAYX, ROST, DLTR, BBBY, SPLS, FOXA, MAT, DISCA, WFM, VRSK, NFLX, MSFT, COST, SBUX, LMCA

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Up – IWM, QQQ, Neutral - SPY