Tuesday, January 13, 2015

SPX Opens Higher Closes Lower as ST Support Holds...IWM Slightly Higher...Earnings Kick off as SNX, LLTC Gain...KBH Falls...

One sector moved higher and one was unchanged on Tuesday…XLU, XLY and XLP were the strongest sectors and XLB edged out XLE as the weakest.
 
Breadth was strengthened as decliners led advancers 1.14 to 1 on the NYSE and 1.05 to 1 on the NASDAQ.

Tuesday – strengthened, decliners led
Monday – NASDAQ strengthened, decliners led
Friday – weakened, decliners led
Thursday – strengthened, advancers led
Wednesday – strengthened, advancers led


SPY down .57 at 202.08 on 214.5 million shares, above average volume
VIX up 0.96 at 20.56…
TNX down .22 at 18.90…
TLT unchanged at 131.82...
XLF down .08 at 23.84 on 37.2 million shares

AAPL up .97 at 110.22 on 67.1 million shares
FB down .27 at 76.45…on 25.1 million shares

Technical Commentary:
IWM +0.08%, QQQ -0.03%, DIA -0.15%, SPY -0.28%.

S&P futures traded higher overnight and the SPX 2,023, opened higher and rose for the first 90 minutes after which volatility jumped and the SPX fell, then rose before falling into the closeSome attribute the late selloff to Germany’s concerns over European monetary policiesOthers point to continued weakness in oil, which hit a new 9-year low of 44.20 on Tuesday.

Key short-term support continues to be last Tuesday’s low at 1,992. 

The World Bank lowered its forecast for global growth to 3% from 3.4%, an increase over 2014 global growth of 2.6%.  It sees economic troubles continuing in the Eurozone and emerging markets.

Q4 earnings season is underway as AA -0.37, -2.29% initially moved higher on better than expected earnings and then reversed as the broad market turned lower on Tuesday.

JPM and WFC to release earnings Wednesday morning and INTC Thursday after the close.

LLTC +1.94%, +4.27% gained after-hours following an EPS beat and raised guidance for the current quarter.  Watch for a potential lift in SOX on Wednesday.

SNX +6.90, +9.72% beats revenues, EPS raises guidance.

KBH -2.70, -16.29% reported strong revenues, earnings, warned of margin pressure and weak demand.

MNST 113.11, price target raised to 130 by Stifel Nicolaus.

RUT Movers:  ABY, SNX, ARNA, PTCT, CLVS, AXDX, PCRX, PRXL, ADTN

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 = 203.91, 205.10, 208.97...
QQQ = 102.44, 103.11, 105.26
IWM = 117.89, 118.72, 121.41…
Support Levels
SPY = 198.85, 196.77...
QQQ = 99.62, 98.20
IWM = 114.36, 112.61...

Q4 Earnings Reaction
Positive Reactions – SNX,

More than 10% -

Negative Reactions – AA, KBH,

More than -10% - KBH,

Reversal in progress –

Reversal of Initial Reaction –


The SPX Market Forecast is pointed up at 53.

___________________



41 out of 100 NDX stocks closed higher and two were unchanged on Tuesday.


Leading NDX 100 stocks included: CELG, SRCL, VRTX, AAL, NFLX, BIIB, CMCSA, AMZN, MNST, TSLA

Lagging NDX stocks included: GILD, CTXS, SNDK, ILMN, MU, ALXN, MAT, GMCR, DLTR, ALTR

Leading stocks > +2% on Tuesday: VSLR, UNG, SPWR, DGLY, UBNT, SCTY, JASO, SUNE, GME,

Lagging stocks < -2.0% included: GPRO, XONE, AMBA, FEYE, BBRY, GME, MFRM, AA, JCP, X

Stocks to Watch on Wednesday
Holding Above 30 DMA = 25
ROST, SPLS, WFM, SIAL, BIIB, CHKP, KRFT, VRTX, MNST,  ISRG, SRCL, AVGO, CERN, HSIC, TSCO, WDC, CA, CSCO, CTSH, FISV, NXPI, PAYX, SIRI, CELG, LMCA

Moving Above 30 DMA = 2
CHRW, CMCSA                 

Moving Below 30 DMA = 7
COST, DLTR, EA, GILD, ILMN, MAR, QCOM                            

Staying Below 30 DMA
AAL, ADP, ESRX, FB, GMCR, LVNTA, STX, TRIP, BBBY, CTRX, DTV, EBAY, FAST, MDLZ, MSFT, MYL ORLY, SBUX, VRSK, ADI, AKAM, AMAT, BRCM, CHTR, DISCA, FOXA, KLAC, LBTYA, LLTC, NFLX PCAR, PCLN, VIAB, ADSK, EXPD, MAT, MU, ADBE, ALTR, CTXS, DISH, EQIX, GOOG, INTC, INTU, SYMC, TXN, YHOO, AAPL, LRCS, NVDA, REGN, NTAP, SNDK, AMGN, VOD, XLNX, ALXN, ATVI, SBAC, AMZN, GRMN, BIDU, TSLA, VIP, WYNN

6-month Intermediate Term Market Trend: Up
3-day Short Term Market Trend: Down

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