Retail Stocks Slammed on Negative Reaction to DKS, SPLS, TJX...SPY, QQQ Above 30 DMA...AAPL, AMZN, BIDU, GOOG, NFLX Up...Green Line Rolls...

All nine sectors moved lower on Tuesday…however…XLU, XLE and XLP were the strongest sectors…XLI was the weakest sector again.

Sector Posture 

Positive trend: XLB, XLE, XLK, XLP, XLV

Neutral trend near resistance: XLI, XLF, XLU, XLY

Neutral trend near support:

Breadth weakened…as decliners led advancers 2.41 to 1 on the NYSE and 2.99 to 1 on the NASDAQ.

Tuesday – weakened, decliners led

Monday – weakened, advancers led

Friday – strengthened, advancers led

Thursday – weakened, decliners led

Wednesday – weakened, decliners led

SPY down 1.19 at 187.55 on 111.6 million shares

VIX up .54 at 12.96…

TNX down .27 at 25.09…

TLT up .25 at 112.95...

XLF down .13 at 21.73 on 19.4 million shares

AAPL up .12 at 604.71 on 8.3 million shares

FB down .65 at 58.56…on 53.8 million shares, below average volume

Technical Commentary:

IWM – 1.53%, DIA – 0.84%, SPY – 0.63%, QQQ – 0.36%.

Small caps, large caps and retail stocks dropped on Tuesday after negative earning reactions on TJX -7.62%, DKS -17.98% and SPLS -12.55%.  BBY, SHLD, ROST, TGT, DLTR, WFM and WMT moved lower.  JCP and JWN were lower on the negative sentiment after having positive earning reactions on Friday.  As a group XRT was down -2.47%.

CAT -3.63% led the DJIA lower after a 13% worldwide machine sales drop in latest three months.

AAPL, AMZN, BIDU, GOOG and NFLX were positive on Tuesday and strengthened the NDX.  The price patterns on these stocks are showing more potential upside.

The SPY is short-term neutral closing above its 30 DMA.  DIA closed below its 30 DMA but above four-week support.  QQQ had a modest pull back to Monday’s S1, closed above its 30 DMA and is positive for the week.  IWM reversed Monday’s gain but is above last week’s low.

The Market Forecast green line moved below 80 today and indicates a defensive posture.  Watch for stocks that may be breaking support and take protective action.

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 = 188.89, 190.42…

QQQ = 88.61, 89.86…

IWM = 113.03…

Support Levels

SPY = 186.48, 186.01, 184.96

QQQ = 86.58 85.53, 85.11

IWM = 107.44

Q1 Earnings Reactions

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

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

Reversal in progress – AKAM, BRCM, CHKP, CTSH, EXPE, GRPN, KMB, LLTC, LXK, MOS, NUE, STLD, SUNE, ZION

Reversal of Initial Reaction – ADM, AIG, AKS, ARWR, ATI, BAC, BMY, CAR, CELG, COF, DDD, DIS, F, IBM, K, KRFT, LLY, LVS, MMM, MU, NSC, NUE, NVDA, PG, SIRI, T, UPS, VZ, YNDX, ANGI, BIDU, NFLX, RF, INTC

The SPY Market Forecast green line is pointed down at 75.

____________________

Setups

Horizontal Breakout: P, SWI, AMZN, BIDU, EBAY, FFIV, GOOG, NFLX, PCLN, SNDK, CTRP, PANW, RCL, QQQ,

Diagonal Breakout: ADBE, FB, GRMN, MSFT, MU, TRIP, ATI, MS, SWKS,

Bull Flag:  RAX, JCP, JWN, ADSK, CELG, DTV, GILD, GMCR, MNST, STX, WDC, AAL, GLW, KKD, SPY, TLT, TPX, Z, AXP, MCD, MMM, VZ,  

Potential Bullish Divergence: ZION,

Gap Up:  

Gap Down:  

Bear Flag:  BAC, TSLA, MFRM, UNG,

At Support:  BBRY, LVS, SCTY, XONE,

C- Pattern: 

Moves

New Highs: AAPL, NFLX,

Gap Up: HD,  

Gap Down: DKS, SPLS, TJX, ROST,

H Breakout:  BX, YNDX,

Diagonal Breakout:   

Breakout Test:  

Bull Flag Bounce:  

Bounce:   

MACD Divergence Bounce: JPM,

Bear Flag: UBNT,  

Support Break: ANR, IBM, X, WMT,

______________________

25 of 100 NDX stocks closed higher on Tuesday and three were unchanged.

Leading NDX 100 stocks included: NFLX, AMZN, BRCM, CTRX, BIDU, MAR, SIRI, NXPI, ESRX, LLTC

Lagging NDX stocks included: SPLS, VOD, REGN, DISH, ROST, VRTX, ILMN, MYL, ISRG, DTV

Leading stocks > +2% on Tuesday included: CTRP, CSIQ

Lagging stocks < -2.0% included: X, SPWR, Z, KKD, JDSU, UAL, ATI, FSLR, ANR, UBNT, WLT, SCTY, TSL, RAX, LVS

Stocks to Watch on Wednesday

Holding Above 30 DMA= 46

MAR, CHRW, EXPD, SIAL, MDLZ, MU, SNDK, GILD, CHTR, AAPL, CTXS, DTV, ADP, CELG, FISV, EQIX, NXPI, AVGO, VRSK, LBTYA, SBAC, QCOM, ATVI, KRFT, COST, FOXA, GMCR, ALXN, MNST, SYMC, CTRX, ILMN, ADSK, NFLX, CSCO, ADBE, AMAT, HSIC, INTU, MSFT, MXIM, PAYX, BIDU, CMCSA, FFIV, TRIP

Moving Above 30 DMA = 3

BRCM, GOOG, SIRI

Moving Below 30 DMA = 11

BIIB, DLTR, MAT, NVDA, ORLY, REGN, ROST, SBUX, SPLS, VRTX, VIAB

Staying Below 30 DMA

DISH, AKAM, SRCL, VOD, INTC, TXN, FB, LMCA, GRMN, YHOO, CTSH, EXPE, LINTA, MYL, WYNN, TSLA, FAST,CHKP, PCAR, ADI, WDC, VIP, STX, ISRG, KLAC, LLTC, NTAP, XLNX, BBBY, ALTR, AMGN, DISCA, TSCO, EBAY, ESRX, WFM, AMZN, CERN, PCLN, CA

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Neutral