Intra-day Reversals Lead to Hammer Time on DIA, SPY, QQQ, IWM...EA Rockets +21.03%...Sectors Suggest SPY, DIA Poised for Breakout/New All-time Highs...

Eight of nine sectors moved higher on Wednesday…XLU, XLF and XLP were the strongest sectors…XLY was the weakest sector.

Sector Posture 

Positive trend: XLE, XLP, XLU, XLB

Neutral trend near resistance: XLI, XLK

Neutral trend near support: XLF, XLV, XLY

Breadth strengthened…as advancers led decliners 1.84 to 1 on the NYSE and 1.24 to 1 on the NASDAQ.

Wednesday – strengthened, advancers led

Tuesday – weakened, decliners led

Monday – weakened, decliners led

Friday – mixed, advancers led

Thursday – weakened, mixed

Wednesday – strengthened, advancers led

SPY up 1.10 at 187.88 on 106.4 million shares

VIX down .40 at 13.40…

TNX down .05 at 25.90…

TLT down .40 at 112.08...

XLF up .29 at 21.88 on 40.9 million shares

AAPL down 2.08 at 592.33 on 10 million shares

FB down 1.14 at 57.39…on 78.4 million shares

Technical Commentary:

DIA + 0.79%, SPY +0.59%, IWM + 0.06%, QQQ -0.29%. 

Just when it seemed…that the ever random guessing tele-evangelistic naysayers would prove to be right…that WFM -18.81% was going to take the WMD, Whole Market Down…that IWM was going to demolish support and finally pull SPY down to its knees (as many have been forecasting)…that TWTR insiders cashing in on falling prices was the 2000 bubble bust all over again…that every high visibility NDX stock AAPL, AMZN, BIDU, FB, GOOG, NFLX and PCLN was falling…just when it seemed like you were all alone in the neighborhood…someone called Bear Busters and DIA, SPY, IWM and even the slightly negative QQQ all formed long-tailed hammer/dragonfly doji patterns and pulled off an intra-day reversal leaving SPY just one measly dollar below its all-time closing high and DIA just 44 cents off its closing high.

To describe Wednesday's market action, we paraphrase Mr. McGuire from the 1967 film, The Graduate…I want to say just two words to you…just two words…are you listening…waste management.

Every sector positive or neutral just formed a higher low.  Higher lows belong to price moves to the upside.  If every sector bounces higher, SPY and DIA will break out of resistance and make new all-time highs.

The NDX -10.04 was the weakest market segment and was led on the downside by WFM, YHOO, FB, AMZN, AAPL, PCLN, BIDU, GOOG and CTSH which combined for -16.6 points.  On the positive side point leaders MDLZ, DTV, MSFT and ATVI combined for +11.3 NDX points. 

Ever know a young kid that said when he or she grew up they wanted to be in waste management?

WM Bull Flag…

                    (click image to enlarge)

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 = 187.17, 189.70…

QQQ = 86.90, 87.88…

IWM = 113.84, 115.25…

Support Levels

SPY = 184.96, 183.37, 181.38

QQQ = 85.98, 85.09, 84.16

IWM = 110.12, 108.91, 106.99

Earnings This Week:

Monday: AEIS, AIG, PFE, TSN, VECO, YY

Tuesday: ATVI, ALL, ARWR, CBOE, DTV, DISCA, DIS, EA, FEYE, FSLR, GRPN, HSIC, LBTYA, MRO, MOS, TRIP, WFM

Wednesday: CAR, CTSH, CTRP, FWLT, HUM, GMCR, MCP, PRGO, PRU, SCTY, SFUN, TSLA, FOXA, Z

Thursday: APA, DISH, FNMA, FXCM, JAZZ, LMCA, MNST, NVDA, PCLN, REGN, SUNE, UBNT,

Friday: MHR, SSYS

Q1 Earnings Reactions

Positive Reactions – ATVI, ALL, DTV, EA, HUM, TRIP, WYNN, ESI, MA, TMUS, TPX, YELP, CTRX, TSO, ANR, GRMN, ENR, LVLT, PBI, TWX, CHRW, CNX, DNB, FISV, MAR, VRSK, WLP, MGM, MRK, NOK, S, UTHR, BWLD, AAPL, AET, ALXN, ANGI, BA, BHI, BIDU, BTU, BX, C,COG, CTXS,  DAL, DAVE, DECK, DHI, DO, DV, ETFC, FCX, GE, GILD, GME, HOG, HAL, HAS, HOG, IBKR, INTC, JNJ, KO, LPNT, LRCX, MS, NXPI, POT, RF, SCHW, SNDK, SPWR, STI, SWK, SWKS, TKR, TRV, UNP, URI, WFC, XRX, YHOO

Negative Reactions – ARWR, CTSH, DIS, FEYE, GRPN, MRO, PRGO, SFUN, WFM, AEIS, AIG, CBOE, DISCA, MOS, PFE, TSN, VECO, YY,  MTW, AKAM, DVA, EXPE, KRFT, LNKD, K, VIAB, VRTX, CLX, JDSU, WDC, EBAY, ESRX, SEE, PNRA, STX, SWI, TWTR, ADM, BMY, CHKP, COH, DDD, GT, PCAR, SAVE, SOHU, ACI, AKS, ALTR, AMGN, AMZN, ATI, BAC, BBRY, BIIB, BRCM, CELG, CLF, CREE, F, FAST, FFIV, GOOG, IBM, JCI, JPM, KLAC, KMB, LLTC, LLY, LVS, LXK, MMM, MU, MXIM, NSC, NUE, P, PG, QCOM, SIRI, STLD, STT, T, UA, UNH, UPS, V, VMW, VZ, XLNX, YNDX, ZION, ZNGA, 

Reversal in progress – BRCM, LLTC, NUE, STLD, ZION

Reversal of Initial Reaction – AKS, ATI, BAC, CELG, F, IBM, KMB, LVS, MMM, MU, PG, SIRI, T, UPS, YNDX, ANGI, BIDU, NFLX, RF, INTC

The SPY Market Forecast green line turned down at 78.

____________________

Setups

Horizontal Breakout: ATI, HOG, DDD, UBNT,      

Diagonal Breakout: VRSN, YNDX, INTC,  

Bull Flag: TLT,    

Potential Bullish Divergence:  

Gap Up:  CAR, CTRP, GMCR, PRU, SCTY, FOXA, Z

Gap Down: MCP, TSLA,

Bear Flag: 

At Support: GME, IBM, IWM, MFRM, UPL, ESI, NTES, P, SINA, TSL, ADSK, AMZN, BIDU, FFIV, PCLN,

C- Pattern:   

Moves

New Highs: DTV,       

Gap Up: EA, ATVI, EA

Gap Down: FEYE, GRPN, PRGO, PANW, SFUN, CTSH, NTAP, WFM, YHOO,  

H Breakout: V,        

Diagonal Breakout:  

Breakout Test:

Bull Flag Bounce:   

Bounce: FAS, SCHW, SPY, XLNX,     

MACD Divergence Bounce: C, STI, ZION, MSFT,      

Bear Flag:  

Support Break: FSLR, X, ANGI, BX, GOGO, QIHU, RAX, SCTY, SPLK, SWI, WLT, EBAY,

______________________

44 of 100 NDX stocks closed higher on Wednesday.

Leading NDX 100 stocks included: ATVI, MDLZ, DTV, DTV, TRIP, VIP

Lagging NDX stocks included: WFM, YHOO, CTSH, BIDU, NTAP, GMCR, GRMN, PCLN, TSLA, DISCA, FFIV

Leading stocks > +2% on Wednesday included: FAS,

Lagging stocks < -2.0% included: Z, PANW, FSLR, CTRP, GME, SPWR, UPL, CREE, MFRM, SFUN, SCTY, QIHU, SPLK, BBRY, YOKU

Stocks to Watch on Thursday

Holding Above 30 DMA= 32

MAR, INTC, CHRW, SPLS, EXPD, MDLZ, SIAL, MU, SNDK, CMCSA, CHTR, GILD, AAPL, CTXS, SRCL, VOD, DTV, ADP, ALXN, CELG, FISV, EQIX, NXPI, AVGO, GRMN, LMCA, MAT, VRSK, DISH, LBTYA, SBAC, QCOM

Moving Above 30 DMA = 4

ATVI, DLTR, ILMN, KRFT

Moving Below 30 DMA = 4

BIDU, ORLY, SIRI, YHOO

Staying Below 30 DMA

COST, CSCO, CTRX, CTSH, EXPE, FB, FOXA, LINTA, MYL, NVDA, PAYX, REGN, TSLA, VRTX, WYNN, BRCM, SYMC, CHKP, PCAR, TXN, ADI, WDC, FFIV, VIP, STX, ISRG, AMAT, KLAC, LLTC, NTAP, XLNX, BBBY, ROST, ALTR, AMGN, HSIC, DISCA, SBUX, TSCO, INTU, AKAM, EBAY, ESRX, WFM, TRIP, ADBE, AMZN, BIIB, GMCR, CERN, PCLN, MNST, NFLX, CA, GOOG,

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Neutral