SPY, DIA Bull Flag Pullback on Light Volume Following Record High...

Four of nine sectors moved higher on Wednesday… XLU, XLV and XLE were the strongest sectors…XLY was the weakest sector again.

Sector Posture 

Positive trend: XLE, XLP, XLU, XLB, XLI, XLK

Neutral trend near resistance: XLF, XLV, XLY

Neutral trend near support:

Breadth weakened…as decliners led advancers 1.61 to 1 on the NYSE and 2.86 to 1 on the NASDAQ.

Wednesday – weakened, decliners led

Tuesday – weakened, decliners led

Monday – strengthened, advancers

Friday – strengthened, advancers led

Thursday – weakened, decliners led

Wednesday – strengthened, advancers led

SPY down .90 at 189.06 on 72.2 million shares

VIX up .04 at 12.17…

TNX down .75 at 25.43…

TLT up 1.21 at 112.96...

XLF down .16 at 21.97 on 25.5 million shares, below average volume

AAPL up .11 at 593.87 on 5.9 million shares

FB down .60 at 59.23…on 47.3 million shares, below average volume

Technical Commentary:

IWM – 1.62%, DIA – 0.56%, QQQ – 0.52%, SPY – 0.47%.

SPY and DIA bull flag pullback on light volume following record high

XLB moves one cent to an all-time high close

XLI, XLK, XLP and XLY in bull flag pullback
VIX remains low

TLT rallies to horizontal resistance

Euro holds support at 1.37
QQQ, XLF and XLV horizontal resistance setups

Z pulls back from lower high
18 of 24 bear flag setups fail to follow through by the close
WDC, NFLX reversal breakout

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, 191.07, 192.27…

QQQ = 89.77, 90.77…

IWM = 113.84, 115.25…

Support Levels

SPY = 189.14, 188.21, 186.01

QQQ = 88.21, 87.07, 85.53

IWM = 111.22, 110.09, 108.28

Q1 Earnings Reactions

Positive Reactions – 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 – 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 up at 87.

____________________

Setups

Horizontal Breakout: CTRP, RCL, GOGO, NTES, YNDX, AAPL, EBAY, QCOM,  

Diagonal Breakout: GLD, ANR, P, QIHU, SCTY, SFUN, BIDU, MSFT, NTAP, PCLN,

Bull Flag: ATI, COST, FFIV, TRIP,        

Potential Bullish Divergence:

Gap Up:  

Gap Down:  

Bear Flag: C, CREE, JDSU, MS, QIHU, SFUN, SSYS, SWI, TSL, TWTR, UBNT, WLT, ADBE, EBAY, ESRX, NTAP, STX, TSLA,  

At Support: IBM, MFRM, SCSS, UPL, ZION, ANGI, LVS, GRMN, WFM,

C- Pattern: 

Moves

New Highs: SBAC, XLB,  

Gap Up: TLT, WDC,  

Gap Down:  

H Breakout: WDC, NFLX

Diagonal Breakout: ADBE, NFLX,

Breakout Test:  

Bull Flag Bounce:  

Bounce:

MACD Divergence Bounce: WDC,

Bear Flag: ETFC, GME, MTW, PANW, YELP, PCLN,

Support Break: ETFC, FSLR,  

______________________

28 of 100 NDX stocks closed higher on Wednesday.

Leading NDX 100 stocks included: WDC, ISRG, SBAC, VRTX, AKAM, REGN, NFLX, CELG, AMGN, STX

Lagging NDX stocks included: VIP, ILMN, MU, GMCR, LMCA, WYNN, AMZN, TRIP, PCAR

Leading stocks > +2% on Wednesday included: CTRP, GOGO, QIHU, XONE,

Lagging stocks < -2.0% included: MFRM, GME, ETFC, Z, PANW, ZION, SPWR, FAS, RAX, LVS, TBT, ESI

Stocks to Watch on Thursday

Holding Above 30 DMA= 48

MAR, CHRW, SPLS, EXPD, SIAL, MDLZ, MU, SNDK, GILD, CHTR, AAPL, CTXS, SRCL, VOD, DTV, ADP, CELG, FISV, EQIX, NXPI, AVGO, MAT, VRSK, LBTYA, SBAC, QCOM, ATVI, DLTR, KRFT, COST, FOXA, GMCR, ALXN, MNST, ORLY, PAYX, SYMC, CTRX, DISH, ILMN, ADSK, BIDU, BIIB, SIRI, VRTX, NFLX, TRIP, MSFT

Moving Above 30 DMA = 1

AKAM

Moving Below 30 DMA = 7

HSIC, INTC, INTU, SBUX, TXN, FB, LMCA

Staying Below 30 DMA

AMAT, CMCSA, CSCO, GRMN, NVDA, ROST, VIAB, YHOO, CTSH, EXPE, LINTA, MYL, SYNN, REGN, TSLA, BRCM, FST, MXIM, CHKP, PCAR, ADI, WDC, FFIV, VIP, STX, ISRG, KLAC, LLTC,NTAP,XLNX, BBBY, ALTR, AMGN, DISCA, TSCO, EBAY, ESRX, WFM, ADBE, AMZN, CERN, PCLN, CA

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Up