Oil Continues Down Trend...VIX Jumps as SPX Breaks Short-term Support...

All nine sectors moved lower on Wednesday…XLP, XLU and XLF were the strongest sectors and XLE was the weakest.

 

Breadth weakened as decliners led advancers…4.64 to 1 on the NYSE and 4.65 to 1 on the NASDAQ.

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

Monday – weakened, decliners led

Friday – strengthened, advancers led

Thursday – weakened, decliners led

SPY down 3.31 at 203.16 on 148.3million shares

VIX up 3.64 at 18.53…

TNX down .51 at 21.69…

TLT up .90 at 124.10...

XLF down .32 at 24.56 on 42.2 million shares

AAPL down 2.25 at 111.87 on 43.8 million shares

FB down .75 at 76.09…on 31.8 million shares

Technical Commentary:

DIA -1.50%, QQQ -1.56%, SPY -1.60%, IWM -2.12%.

Futures moved lower overnight with the SPX opening lower and gaining downward momentum as Wednesday wore on.  By the end of the day the SPX had dropped more than 33 points more than reversing Tuesday’s intra-day reversal to the upside.

Led by downward momentum in energy stocks, semiconductors $SOX -1.86% and Financials XLF -1.29% joined the selloff.  As a result of the pull back in strong semis there are numerous bull flags including: ADI, ALTR, AMAT, ATML, AVGO, BRCM, INTC, KLAC, LLTC, MU, SNDK, TXN and XLNX.

Over the past two days traders should have become defensive and likely saw a large number of positions stopped out on profit protection stops.  Watch for setups and wait for your entry.

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

Short-term Chart Targets:

SPY = 207.33, 209.06, 210.49...

QQQ = 106.94…

IWM = 118.25, 119.37, 121.27…

Support Levels

SPY = 205.71, 203.13, 201.90...

QQQ = 104.42, 102.42, 101.38…

IWM = 115.04, 114.37, 113.35...

Earnings this week: COST, ADBE,

Q3 Earnings Reaction

Positive Reactions – AVGO, ADI, HPQ, PANW, QIHU, ADSK, JASO, ROST, SPLK, GOGO, RAX, NTES, XONE, YOKU, VJET, BABA, MNST, WFM, ABC, ACI, AMGN, BIDU, BWLD, CBOE, CLF, CLX, CNX, EA, ESRX, EQIX, EXPE, FISV, GLW, GPRO, GRPN, GT, HSY, JCI, JDSU, LNKD, LVLT, MA, MAR, MO, MTW, MYL, PCAR, FE, SCHN, STX, SWI, SWKS, TASR, V, WY, X, WHR,  AAPL, ALK, ALXN, APOL, BMY, BRCM, CAT, CELG, CERN, CHKP, CMCSA, CNI, EMC, EW, GD, HAL, HAS, HOG, ILMN, IM, KLAC, KMB, LLY, LRCX, LXK, MMM, MXIM, MSFT, N, ORLY, PG, RMD, STLD, STT, SWK, TRV, TSCO, TXN, UNP, VRSN, WOOF, YHOO, YNDX, ZION, 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% - GOGO, RAX, WFM, GPRO, GPRN, LNKD, BWLD, SWI, N, EW, TSCO, NKE, ULTA, LULU, PANW, MFRM,

Negative Reactions – COST, AMBA, MFRM, GME, CRM, JD, MBLY, SINA, YY, SWKS, FEYE, FSLR, PCLN, QCOM, TRIP, SCTY, SSYS, SUNE, UBNT, Z, ZU, AEM, CHRW, COH, FB, GRMN, KRFT, MDC, MRK, NEM, PNRA, RGR, SLCA, TPX, TWTR, ALTR, AMZN, BA, BTU, CMG, CREE, DECK, DNKN, DOW, EAT, F, GM, IBM, JNPR, KO, LMT, LUV, NDAQ, P, UA, VMW, XRX, YELP, AXP, BAC, COF, EBAY, GOOGL, INTC, JNJ, JPM, KEY, MAT, NFLX, WFC, AZO, ADBE, KKD, CIEN,

More than -10% - GME, CSIQ, FSLR, UBNT, ZU, AEM, P, TPX,

Reversal in progress – GOGO, P, PCLN, TPX, KO,

Reversal of Initial Reaction – AMZN, FEYE, SWKS, Z, ADBE, ALTR, ALTR, AXP, AZO, BA, BAC, BTU, CHRW, CMG, COF, COH, CREE, DECK, DNKN, DOW, EAT, EBAY, F, GM, GOOGL, GRMN, INTC, JNJ, JNPR, JPM, KEY, KKD, KO, KRFT, LMT, LUV, MAT, MDC, MRK, NDAQ, PNRA, UA, VMW, WFC, XRX,

The SPY Market Forecast is at 83.

___________________

8 of 100 NDX stocks closed higher on Wednesday.

Leading NDX 100 stocks included: GMCR, SPLS, MAT, CHKP, KLAC, MNST, BRCM, TXN

Lagging NDX stocks included: WYNN, ALXN, ISRG, VIP, TSLA, EXPE, AMAT, PCAR, CTRX, SNDK

Leading stocks > +2% on Wednesday:

Lagging stocks < -2.0% included: GPRO, DGLY, KKD, MBLY, X, GME, SFUN, TSL, SPLK, JCP, LOCO, CSIQ, RAX, FAS, SUNE, XONE, QIHU, ATI, FSLR, P, CIEN, BABA, NTES, MTW, Z, SCTY, BBRY, LVS, SPWR, SOHU, ZION, AMBA, AA, C, SSYS, SWI, SCHW, HPQ, IWM, HOG, JD, JDSU

Stocks to Watch on Thursday

Holding Above 30 DMA= 61

ROST, SRCL, DLTR, ISRG, PAYX, REGN, ADP, COST, ORLY, TSCO, VRTX, XLNX, AMGN, BBBY, CELG, ESRX, FISV, HSIC, KRFT, MAR, PCAR, SPLS, SYMC, TXN, BRCM, CA, CHKP, EXPD, INTU, LBTYA, NVDA, SBAC, SBUX, STX, KLAC, MDLZ, MSFT, AMAT, MU, WFM, AVGO, FFIV, NXPI, VOD, WDC, CTRX, DISH, EQIX, ADI, ALTR, CSCO, EBAY, EXPE, FAST, INTC, LLTC, MXIM, SNDK, FOXA, SIAL, CMCSA, CHTR, CTXS, BIIB, TRIP, FB, VRSK, GILD

Moving Above 30 DMA = 0

                                                                                         

Moving Below 30 DMA = 18

AAPL, ADBE, ADSK, AKAM, ALXN, ATVI, CERN, CHRW, CTSH, DISCA, FISV, ISRG, MNST, MYL, NTAP, QCOM, VIAB, YHOO                          

                                                                                       

Staying Below 30 DMA

ILMN, MAT, CTXS, MSFT, PAYX, SBAC, TRIP, AMZN, LMCA, LMCK, SIRI, GRMN, DTV, PCLN, BIDU, GOOG, TSLA, VIP, GMCR, WYNN, NFLX

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Down