IWM Close Five Cents Below All-time Closing High, SPY Nearing High on Eve of FOMC Announcement...MSFT 13-year High...

All nine sectors moved higher on Tuesday…XLK, XLV and XLE were the strongest sectors…XLU was the weakest sector.    

Breadth strengthened as advancers led decliners 3.34 to 1 on the NYSE and 3.20 to 1 on the NASDAQ.

Tuesday – strengthened, advancers led

Monday – strengthened, advancers led

Friday – strengthened, advancers led

Thursday – weakened, decliners led

Wednesday – strengthened, advancers led

SPY up 1.33 at 187.66 on 101.7 million shares, below average volume

VIX down 1.12 at 14.52…

TNX down .18 at 26.81…

TLT up .39 at 108.10...

XLF up .11 at 22.14 on 35.8 million shares

AAPL up 4.66 at 531.40 on 7.4 million shares

FB up .45 at 69.19…on 40.7 million shares

Technical Commentary: 

IWM + 1.46%, QQQ + 1.21%, SPY + 0.71%, DIA + 0.56%.

The FOMC will conclude its first meeting led by new chairwoman, Janet Yellen, tomorrow and issue its policy statement at 2 pm ET.  Typically this sets off a wave of volatility for several minutes but generally makes no significant impact on the broad market trend.

The broad market continued its bounce started on Monday with the exact opposite order of strength on Tuesday led by IWM, QQQ, SPY and DIA ranging from +0.56% to +1.46%.  On Monday DIA led followed by SPY, QQQ and IWM ranging from +0.44% to 1.07%.  Combined for the first two days this week its QQQ +2.10%, IWM +1.91%, DIA +1.64% and SPY +1.62%.

It has been a positive week so far and it appears that IWM and SPY are poised to make new all-time highs, while the QQQ is poised to make a new twelve year high.  DIA is close but lags the other broad market ETFs.

Sector bull flags in XLB, XLE, XLF, XLI, XLK, XLP, XLV and XLY have all given entry bounces and are also poised to reach new highs.  XLU made a new all-time high on Monday.  Seven of the sectors are positive and XLP is poised to turn positive from neutral.  XLE is neutral below its five-month range resistance but nearing a potential breakout setup.

From the Bull Flag list on our Saturday post BX, FAS, GOGO, HOG, IWM, LVS, SFUN, SPY, STI, AKAM, TRIP, WFM, WYNN, XLNX, TRN, SWKS, CAR, FL, MBI, VMW, AGO and PWR made an entry bounce on Monday or Tuesday.  ALK and LNG were entries last week.  The remainder of the list AAL, BAC, MS, QIHU, DTV, ESRX, FB, SBUX, BIG, ANF, DAL and PWR continue to be bull flag setups for possible entry as early as Wednesday.

MSFT +3.94% made its highest close since July 2000 following news of it will release Office suite for iPad in the near future.  MSFT accounted for 11.2 points of the NDX 44.11 point gain on Tuesday.  GOOG, AAPL and GILD followed with a combined 11.7 NDX point contribution.

Trade with the trend of the chart you are trading and continue to move your protective stops.  Continue to follow your rules.

Short-term up trend Chart Targets:

SPY = 187.15, 189.25, 190.55…

QQQ = 90.96, 92.25, 93.05…

IWM = 118.71, 120.64, 121.84…

Support Levels

SPY = 183.75, 182.60

QQQ = 88.87, 87.35, 86.49

IWM = 115.58

Q4 Earnings Reactions

Positive Reactions – KKD, MFRM, KKD, BIG, FL, JOY, DRYS, TSL, DDD, MNST, ROST, YOKU, CRM, SHLD, ANF, TGT, DLTR, LOW, HD, M, SCTY, ZU, PCLN, DISH, INTU, AEE, MDRX, ALEX, DTV, TSLA, GRMN, SWY, KRFT, AMAT, CTRP, NVDA, SPWR, TRIP, REGN, CBOE, MCO, ATVI, AKAM, EXPE, GMCR, NXPI, ONNN, ORLY, SCSS, SWI, TWX, DIS, YELP, AGNC, KORS, KEYW, IDXX, XYL, YUM, NOV, SPG, TSN, ZNGA, ALXN, BRCM, BX, CMG, GOOG, JDSU, MTW, PHM, RYL, UA, VIAB, V, BA, DOW, FB, LVS, QCOM, VLO, AKS, AAL, CHKP, EA, F, ILMN, LXK, CAT, RCL, JNPR, MSFT, KMB, PG, MXIM, SBUX, NFLX, FFIV, URI, UNP, EBAY, MCD, CREE, TXN, UTX, NUAN, XLNX, BHI, DAL, RF, MS, SLB, STI, AXP, SWKS, BAC, LLTC, WEN, MON, MU, STZ, APOL

Negative Reactions – GOGO, CIEN, COST, CSIQ, HOV, MCP, SSYS, ADSK, CRM, FSLR, SINA, ESRX, GRPN, YNDX, KO, A, GNC, WTW, VFC, WFM, ANGI, CSCO, DISCA, NTAP, RAX, CI, LNKD, TPX, VRSN, ADP, CTSH, HUM, MDC, P, TSO, TWTR, ADM, BWLD, CERN, CHRW, DDD, SFLY, GILD, CVX, MA, MAT, PCAR, AMZN, MMM, CELG, CL, XOM, ESI, HOG, OSTK, POT, SHW, WHR, BA, CTXS, EMC, TSCO, CRUS, GLW, DD, F, VMW, YHOO, AAPL, STX, ZION, HON, KSU, SWK, STT, ALTR, ISRG, KLAC, KEY, JCI, LMT, WDC, ABT, BAX, ATI, COH, FCX, AMD, IBM, HAL, JNJ, TRV, VZ, GE, COF, INTC, UNH, C, GS, CSX, FAST, AA, FDO, BBBY, SCHN (104)

Reversal in progress –ADSK, ATI, A, CRUS CSX, CVX, GS, COF, JNJ, IBM, JCI, KEY, KO, LNKD, MA, RAX, STX, WFM (18, 18%)

Reversal of Initial Reaction – SINA, AA, AAPL, ABT, ADP, ADM, ALTR, BWLD, DISCA, CERN, CL, CSCO, CTSH, CTXS, DDD, HAL, EMC, ESRX, FAST, FDO, FSLR, HOG, BAX, VRSN, HUM, P, GILD, PCAR, MDC, MMM, CELG, HOG, POT, SHW, GLW, DD, HON, SWK, ISRG, KLAC, LMT, SFLY, TPX, TSCO, TSO, WHR,  UNH, VZ,  WDC, VFC, VMW, YHOO, XOM, ZION (54, 51%)

The Market Forecast Green Line closed up at 82.

____________________

Setups

H Breakout: ATI, FSLR, HOG, IBM, IWM, NKE, RCL, SWKS, TPX, V, X, ADBE, UBNT

Diagonal Breakout: CREE, YELP, YNDX, ADSK,

Bull Flag: AAL, BAC, MS, QIHU, DTV, ESRX, FB, SBUX, BIG, ANF, DAL, PWR

One Day:  

Potential Bullish Divergence: 

Gap Up: 

Gap Down: GME,    

Bear Flag: 

At Support:

C- Pattern:

Moves

New Highs: MTW, PANW, MSFT, QCOM, SNDK, XLNX,  

Gap Up:    

Gap Down:      

H Breakout: Z, GRMN,    

Diagonal Breakout: GOOG, MU, TSLA,    

Breakout Test:

Bull Flag Bounce: 

Bounce: CRM, DDD, DRYS, ESI, JNPR, LNKD, SCTY, SFUN, SPLK, SSYS, SWI, YOKU, AAPL, CELG, GILD,

MACD Divergence Bounce: RCL  

Bear Flag: 

Support Break: 

______________________

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

Leading NDX 100 stocks included: SNDK, MSFT, GILD, AMGN,TSLA, STX, NVDA, MU, TSCO

Lagging NDX stocks included: ROST, CMCSA, SIRI, DTV

Leading stocks > +2% on Tuesday included: YNDX, X, SPLK, YOKU, DRYS, SCTY, SWI, ESI

Lagging stocks < -2.0% included: GME, WLT, SINA

Stocks to Watch on Monday

Holding Above 30 DMA= 65

BIIB, MXIM, TSLA, NXPI, ALTR, ALXN, REGN, FB, ADBE, DISH, EBAY, AKAM, AVGO, DTV, PCAR, AMGN, ATVI, EXPE, MSFT, MYL, NVDA, TRIP, XLNX, MAR, AMAT, KLAC, TXN, GRMN, HSIC, LINTA, LLTC, VIAB, KRFT, MDLZ, FISV, DISCA, CTXS, FAST, INTU, WFM, BBBY, DLTR, ROST, SIAL, ADP, TSCO, ESRX, PAYX, AMZN, MAT, SBUX, CHKP, LMCA, GMCR, BRCM, CERN, CTSH, INTC, PCLN, QCOM, SNDK, STX, WYNN, YHOO, ADI

Moving Above 30 DMA = 4

AAPL, GOOG, WDC, FOXA

Moving Below 30 DMA = 0

Staying Below 30 DMA

LBTYA, SBAC, COST, BIDU, FFIV, ISRG, MNST, MU, ORLY, SRCL, EQIX, NFLX, ILMN, CA, VRSK, ADSK, VOD, CELG, GILD, SPLS, VRTX, SIRI, CTRX, CMCSA, CSCO, NTAP, CHTR, CHRW, SYMC, EXPD, VIP

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Up