Stock Indexes Fall on Light Volume as TWTR Crushed...Social Media and Financial Stocks Lower...

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

Sector Posture 

Positive trend: XLE, XLP, XLU

Neutral trend near resistance: XLB, XLI, XLK

Neutral trend near support: XLF, XLV, XLY    

Breadth weakened…as decliners led advancers 2.16 to 1 on the NYSE and 3.64 to 1 on the NASDAQ.

Tuesday – weakened, decliners led

Monday – weakened, decliners led

Friday – mixed, advancers led

Thursday – weakened, mixed

Wednesday – strengthened, advancers led

SPY down 1.64 at 186.78 on 85.4 million shares, below average volume

VIX up .51 at 13.80…

TNX down .16 at 25.95…

TLT up .45 at 112.48...

XLF down .31 at 21.59 on 60 million shares, above average volume

AAPL down 6.55 at 594.41 on 13.3 million shares

FB down 2.69 at 58.53…on 55.8 million shares, below average volume

Technical Commentary:

IWM – 1.63%, QQQ – 1.30%, SPY – 0.87%, DIA – 0.73%.

Small cap stocks were crushed back to support and the NDX -48.58 rolled and closed below the low of the high day on Tuesday.  SPY and DIA lower but still near all-time highs. 

Earning reactions and TWTR unleashed selling pressure into the market.  The NDX was down led by a combined -30 NDX points from AMZN, AAPL, FB, GOOG, MSFT, GILD, CMCSA, EBAY, CSCO, PCLN, NFLX and TSLA.  AMZN, EBAY and NFLX were classic bear flag entries.  PCLN and TSLA report earnings this week.

Tuesday was a weak day for earning reactions from Monday’s announcements and Tuesday’s before the open announcements (see list below).  DTV +2.38% did have a positive reaction and after the close EA +15.86% and FSLR +4.11% gapped higher.  Watch both for a potential bullish gap on Wednesday.

Following the theme of negative reactions on Tuesday, after the close WFM -13.89%, FEYE -11.10% and GRPN -6.25% gapped lower.  Watch these three for potential bearish gaps.

TWTR -6.90, -17.81% was crushed without a peep all day and led tech shares lower on heavy selling as 134.6 million shares traded after the lockup on hundreds of millions of insider shares expired.  Other social media stocks including YELP -13.39%, P -8.94%, LNKD -5.69%, Z -4.65%, FB -4.39%, ANGI -4.38% and ZNGA -3.39% sold off sharply.

AVGO +3.09, +4.81% gaps higher, breaks out on LSI acquisition announcement after announcement of being added to SPX on Monday.

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 – DTV, 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 – 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 79.

____________________

Setups

Horizontal Breakout: SWKS, DDD, UBNT, XONE, YHOO,     

Diagonal Breakout: AAL, FSLR, GLW, PANW, ANR

Bull Flag: TLT, TPX,   

One Day: AAPL,

Potential Bullish Divergence: BAC, BX, CIEN, SFUN, TSL,

Gap Up: FSLR, EA, ATVI, TRIP,

Gap Down: WFM, FEYE, GRPN,

Bear Flag: VRSN, YNDX,

At Support: IBM, IWM, JDSU, RCL, SCSS, STI, X, ANGI, GOGO, QIHU, RAX, SWI, ADBE, EBAY, INTC, MSFT, ROST

C- Pattern:   

Moves

New Highs:       

Gap Up: UNG, AVGO

Gap Down: TWTR, AEIS 

H Breakout:        

Diagonal Breakout:   

Breakout Test:

Bull Flag Bounce:   

Bounce:     

MACD Divergence Bounce: GMCR,     

Bear Flag: AMZN, EBAY, NFLX, PCLN, CRM, P, SCTY, SOHU, SPLK,

Support Break: MS, BAC, CIEN, LNKD, SCHW, YELP, ADBE

______________________

14 of 100 NDX stocks closed higher on Tuesday.

Leading NDX 100 stocks included: AVGO, DTV, GMCR, GRMN

Lagging NDX stocks included: NFLX, FB, TSLA, WYNN, AMZN, TRIP, DISCA, ADBE, AKAM, MYL, REGN, VRTX

Leading stocks > +2% on Tuesday included: UNG, DDD, UBNT

Lagging stocks < -2.0% included: TWTR, YELP, P, LNKD, SPLK, SCTY, SFUN, Z, ANGI, QIHU, ETFC, FAS, SCHW, JDSU, MFRM, MS

Stocks to Watch on Thursday

Holding Above 30 DMA= 36

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

Moving Above 30 DMA = 0

Moving Below 30 DMA = 17

COST, CSCO, CTRX, CTSH, DLTR, EXPE, FB, FOXA, KRFT, LINTA, MYL, NVDA, PAYX, REGN, TSLA, VRTX, WYNN

Staying Below 30 DMA

ATVI, BRCM, SYMC, CHKP, PCAR, TXN, ADI, WDC, ILMN, 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: Down