Stocks Reverse Course...End The Day Higher...Numerous Bull Flag Bounces...

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

Sector Posture – eight sectors are positive 

Positive trend: XLB, XLE, XLF, XLK, XLP, XLU, XLV, XLY

Neutral trend near resistance:

Neutral trend near support: XLI

Breadth strengthened…as advancers led decliners 2.25 to 1 on the NYSE and 1.77 to 1 on the NASDAQ.

Wednesday – strengthened, advancers led

Tuesday – weakened, decliners led

Monday – weakened, decliners led

Friday – strengthened, advancers led

Thursday – mixed

SPY up .88 at 195.58 on 82.6 million shares

VIX down .54 at 11.59…

TNX down .27 at 25.59…

TLT up .29 at 112.87...

XLF up .02 at 22.75 on 25.6 million shares

AAPL up .08 at 90.36 on 36.8 million shares

FB up 1.72 at 67.44…on 44.1 million shares

Technical Commentary:

IWM + 0.85%, QQQ + 0.64%, SPY - 0.45%, DIA + 0.24%. 

Index ETFs IWM, QQQ, SPY and DIA rallied on Wednesday, reversing much of  Tuesday's selloff, in a bull flag bounce.  QQQ made a new bull market high close.  Depending on entry a Thursday bounce could be an entry signal for many traders.  XLV made a new all-time high close and several other sector ETFs are near all-time highs.

APOL +1.80, +6.15%, BKS +1.09, +5.30%, MON +6.10, +5.06% after a positive earnings reaction.

GIS -1.94, -3.61% on a negative EPS reaction. 

BBBY -4.36, -7.13% in after-hours trading on a negative earnings reaction.

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 = 196.05, 197.87, 198.99 …

QQQ = 93.02, 94.31, 94.89…

IWM = 117.48, 118.48, 120.30…

Support Levels

SPY = 193.11, 191.96, 190.88…

QQQ = 91.73, 90.44…

IWM = 114.66, 113.62…

EARNINGS this week:

Monday – MU

Tuesday – CCL, WAG

Wednesday – APOL, BKS, BBBY, GIS, MON

Thursday – ESI, LEN, NKE, SCHN

Friday – KBH, FINL

Q1 Earnings Reactions

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

Negative Reactions – BBBY, GIS, CCL, WAG, ORCL, LULU, KKD, SPLK, 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, DKS, DVA, EBAY, ESI, 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, NKE,NSC, NUE, NVDA, P, PCAR, PFE, PG, PNRA, PRGO, QCOM, REGN, SAVE, SEE, SFUN, SIRI, SOHU, SPLS, SSYS, STLD, STT, STX, SUNE, SWI, T, TJX, TSLA, TSN, TWTR, UA, UBNT, UNH, UPS, V, VECO, VIAB, VMW, VRTX, VZ, WDC, WFM, XLNX, YNDX, YY, ZION, ZNGA, 

Reversal in progress – AEIS, AMGN, BRCM, CHKP, CTSH, EXPE, FEYE, GRPN, KLAC, KMB, LLTC, LXK, MOS, NUE, PCAR, STLD, WDC, ZION

Reversal of Initial Reaction – ADM, AIG, AKAM, AKS, ARWR, ATI, BAC, BMY, BRCM, CAR, CELG, COF, DDD, DIS, DISCA, DVA, ESRX, F, FFIV, IBM, JCI, K, KRFT, LLY, LNKD, LVS, MMM, MU, NKE, NSC, NUE, NVDA, PG, PRGO, QCOM, SAVE, SIRI, SOHU, STX, SUNE, T, UPS, VIAB, VMW, VZ, YNDX, YY, ANR, BTU, COG, YHOO

The SPY Market Forecast green line is rising in the upper zone at 94.

____________________

Setups

Horizontal Breakout: GOGO, LNKD, SPWR, TPX, X, YOKU, CTSH, MYL, TRIP,

Diagonal Breakout: QIHU,  

Bull Flag: GTAT, JDSU, SWKS, UPL, ADSK, MNST,  

Potential Bullish Divergence:  

Gap Up:  

Gap Down:

Bear Flag: 

At Support: JNPR,   

C- Pattern:

Moves

New Highs: Z, INTC,

H Breakout: DDD, SCSS, FB, GOOG, SBUX,

Diagonal Breakout: 

Bull Flag Bounce: AAL, ATI, BBRY, CREE, CSIQ, CTRP, ETFC, FSLR, JASO, MS, NKE, PANW, SCHW, STI, SUNE, TSL, YNDX, ZION, ANR, BRCM, CTXS, EXPE, NFLX, SNDK, STX, TXN, WDC,

Gap Up: AIG,

Gap Down: HOG, QCOM,

Breakout Test:   

Bounce: ANGI, IWM, MFRM, SPY, TPX, V, PCLN,

MACD Divergence Bounce: DAL, ESI, KKD,  

Bear Flag:    

Support Break: ROST,  

C- Pattern:

      

______________________

73 of 100 NDX stocks closed higher on Wednesday.

Leading NDX 100 stocks included: TRIP, FB, GOOG, FOXA, WDC, TSLA, BIDU, NFLX

Lagging NDX stocks included: VRTX, MNST, QCOM, CTRX, AKAM, AMAT

Leading stocks > +2% on Wednesday included: Z, SUNE, DDD, GOGO, SPWR, TSL, YELP, CTRP, CSIQ, ATI

Lagging stocks < -2.0% included:

Stocks to Watch on Thursday

Holding Above 30 DMA= 72

MAR, CHRW, SIAL, MU, SNDK, CHTR, AAPL, CTXS, ADP, CELG, EQIX, NXPI, AVGO, ATVI, KRFT, CMGR, CTRX, ILMN, ADSK, NFLX, CSCO, ADBE, AMAT, HSIC, INTU, MSFT, MXIM, BIDU, CMCSA, FFIV, TRIP, BRCM GOOG,  SIRI, AKAM, AMGN, BIIB, EXPE, FB, LLTC, SBUX, VIAB, ALTR, CERN, DISCA, DLTR, NTAP, REGN, TSLA, TXN, ADI, AMZN, GRMN, KLAC, NVDA, INTC, MYL, STX, VIP,  WDC, ORLY, SRCL, FAST, ISRG, LMCA, CHKP, MNST, XLNX, PAYX, PCAR, SYMC, CA, CTSH, DISH, DTV, MAT, QCOM, LINTA, COST, VRTX

Moving Above 30 DMA = 4

FISV, GILD, PCLN, SBAC                                                                                                      

                                   

Moving Below 30 DMA = 1

FFIV                                                                                                                                                          

Staying Below 30 DMA

MXIM, ALXN, GILD, NVDA, QCOM, VIAB, PCLN, WFM, FOXA, BBBY, CA, CERN, ROST, YHOO, DISCA, REGN, ESRX, VRSK, EXPD, MDLZ, TSCO, SBAC, LBTYA, WYNN, SPLS, VOD, EBAY

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Neutral