Stocks Continue to Climb

All nine sectors moved higher on Friday…XLI, XLV and XLB were the strongest sectors while XLU was the weakest. 

Breadth weakened…advancers led decliners…1.91 to 1 on the NYSE and  decliners led advancers 1.02 to 1 on the NASDAQ.

Friday – weakened, mixed

Thursday – strengthened, advancers led

Wednesday – weakened, mixed

Tuesday – strengthened, advancers led

Monday – strengthened, decliners led

SPY up 2.20 at 188.47 on 214.6 million shares, above average volume

VIX down 3.21 at 21.99…

TNX up .46 at 21.99…

TLT down .68 at 121.07...

XLF up .28 at 22.32 on 53.4 million shares, above average volume

AAPL up 1.41 at 97.67 on 68.1 million shares, above average volume

FB up 3.32 at 75.95…on 76.3 million shares, above average volume

Technical Commentary:

DIA +1.63%, QQQ +1.32%, SPY +1.18%, IWM -0.30%.

SPY had fallen -9.9% to an intraday low on Wednesday before big buying stepped in at 181.92 and bounced the market to a white hammer close.  With the heaviest SPY volume of the year Wednesday looked like a capitulation climax shaking weak traders out of the market.  Thursday opened lower before big buying stepped in at 182.89 and formed a large white candle.  Friday gapped higher, traded in a range before forming a doji with a close within one cent of its open.

SPY formed a weekly large tail hammer and the Market Forecast green line turned up.  It appears that the market has found a support low and that buyers are returning with heavy buying.  The chart indicates that this bounce is likely to continue. 

QQQ and DIA also formed weekly hammer candles, while IWM which was strong on Wednesday and Thursday formed a weekly bullish harami.

                   (click image to enlarge) 

Trade with the trend of the chart you are trading and continue to move your profit protection stops.  Continue to follow your rules.

Earnings this week: 

Monday: AAPL, CMG, HAL, HAS, ILMN, IBM, BTU, STLD, TXN, ZION,

Tuesday: ATI, APOL, EAT, BRCM, CNI, KO, CREE, ETFC, HOG, ISRG, KMB, LXK, LMT, MCD, TRV, UTX, VZ, VMW, YHOO

Wednesday: T, BA, DOW, EMC, EQIX, GD, LRCX, NXPI, ORLY, SWK, TSCO, WHR, XRR, YELP

Thursday: MMM, ALK, ALXN, ALTR, AMZN, CAT, CELG, CERN, CHKP, CMCSA, DECK, DNKN, GM, JNPR, KLAC, LLY, MXIM, MSFT, P, LUV, UA, UNP, UAL, WYNN, YNDX, ZNGA,

Friday: BMY, F, NDAQ, PG, STT, UPS

Q3 Earnings Reactions

Positive Reactions – AMD, C, CSX, DAL, GE, HON, LVS, MS, SCHW, SLB, STI, URI, XLNX, COST, BBBY, BBRY, MU, NKE, PAYX, LULU, PANW, ULTA, MFRM, SPLK,

More than 10% - NKE, ULTA, LULU, PANW, MFRM,

Negative Reactions – AXP, BAC, COF, EBAY, GOOGL, INTC, JNJ, JPM, KEY, MAT, NFLX, WFC, AZO, ADBE, KKD, CIEN,

More than -10% -

Reversal in progress – AZO,

Reversal of Initial Reaction – AXP, KKD, BBRY, MU,

The SPY Market Forecast is at 16.

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Setups

Horizontal Breakout: ANGI, BABA, BBRY, BBY, IWM, JD, NTES, RAX, SCSS, SFUN, SSYS, SUNE, SWKS, TWTR, YY, FB, WYNN,

Diagonal Breakout: PANW, XONE, Z,

Bull Flag: TLT, GMCR,

Bear Flag: SCTY, TPX, V, X, SBUX, STX, TRIP, WDC,

Moves

D Breakout: GPRO, MFRM, SPLK,

Breakout Test: GRMN,

Bull Flag Bounce:  MNST, ROST,

Bounce: AAPL, ADBE, ADSK, AVGO, CELG, COST, DTV, ESRX, FFIV, GILD, MAR, MSFT, MU,

Gap Up: AA, FB, XLNX

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84 out of 100 NDX stocks closed higher and one was unchanged on Friday.

Leading NDX 100 stocks included: EQIX, XLNX, FB, GILD, FFIV, MAR, INTU, ISRG, LMCA, ILMN

Lagging NDX stocks included: SNDK, MAT, GOOGL, NFLX, NXPI, LLTC, ATVI, GRMN, EXPE, SPLS

Leading stocks > +2% on Friday: AA, SPLK, FAS, CRM, DAL, RWLK, GPRO, P, MBLY, RCL, X, MS, UAL, BBRY, YNDX

Lagging stocks < -3.0% included: KKD, GOGO, CSIQ, CAR

Stocks to Watch on Monday

Holding Above 30 DMA=

SIAL, GMCR, ROST, CHRW, GRMN, MYL, SRCL, WYNN

Moving Above 30 DMA = 5

DLTR, ISRG, MNST, PAYX, REGN

Moving Below 30 DMA = 0

                                                                                             

Staying Below 30 DMA

COST, VRTX, AAPL, ALXN, ADP, ADSK, BBBY, YHOO, AMGN, CELG, CERN, CTSH, DTV, EBAY, FAST, FB, GILD, LBTYA, MSFT, NFLX, CSCO, EXPE, INTU, MU, SBAC, WFM, CHRW, DISH, FISV, AVGO, ALTR, BRCM, CTXS, INTC, KLAC, NTAP, BIDU,MAR, NXPI, SNDK, TXN, VOD, XLNX, SPLS, AKAM, BIIB, CHKP,GOOG, QCOM, CHTR, CMCSA, FFIV, LLTC, AMAT, CA, ESRX, EXPD, LMCA, LMCK, MXIM, SYMC, TRIP, VIAB, VRSK, EQIX, ILMN, MDLZ, NVDA, ORLY, SIRI, CTRX, KRFT, ADBE, AMZN, ATVI, FOXA, STX, TSLA, VIP, HSIC, SBUX, TSCO, DISCA, MAT, ADI, WDC, GRMN, PCLN, PCAR

5-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Neutral