SPX Rallies on Up, Down, Up Volatility...NFLX Monster Gap Up...After Hours FFIV, SNDK, XLNX Dive...

Eight of nine sectors moved higher and one was unchanged on Wednesday…XLE, XLB and XLI were the strongest sectors and XLY was the weakest.

 

Breadth was strengthened as advancers led decliners 1.75 to 1 on the NYSE and decliners led advancers 1.36 to 1 on the NASDAQ.

Wednesday – strengthened, mixed

Tuesday – weakened, decliners led

Monday – holiday

Friday – strengthened, advancers led

Thursday – weakened, decliners led

SPY up 1.02 at 203.08 on 122.9 million shares

VIX down 1.04 at 18.85…

TNX up .46 at 18.53…

TLT down 1.56 at 133.40...

XLF up .06 at 23.45 on 40 million shares

AAPL up .83 at 109.55 on 48.5 million shares

FB up .50 at 76.74…on 25 million shares

Technical Commentary:

QQQ + 0.51%, SPY + 0.51%, DIA + 0.26%, IWM -0.32%.

The SPX +9.57, +0.47% played another volatile day of up down up before finishing higher.  Earning reactions continue to be a major influence in trading along with a widely held view that the ECB is on the verge of implementing a QE asset purchasing policy.  Many expect that could occur as early as Thursday in Europe.

The SPX was led by gains in NFLX, NFX, NBR, NTRS, NE, ESV, DNR, RIG, LYB, COH, XEC, SWN, CHK, PSX, QEP and FSLR.  Eleven of the top sixteen leaders were from the oil and gas industry.

The MFC green line  turned higher on Wednesday.

SOX +7.593, +1.13% was stronger than the broad market segments.  SOX was led by gains in CREE, AMAT, MU, ASML, SWKS, SNDK, ARMH, FSL, MCHP, LRCX and MXIM.

NFLX +60.48, +17.34%, CREE +1.54, +4.76% and UNH +3.70, +3.50% moved higher Wednesday on a positive earnings reaction.

After the close, FFIV -19.05, -15.13%, SNDK -5.69, -7.07%, XLNX -2.76, -6.65% and AXP -1.68, -1.92% gapped lower on negative earnings reactions.  Look for bearish gaps on Thursday morning.

Wednesday RUT Movers:  FANG, PDCE, RSPP, PE FICO, HLSS, WWD

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...

Earnings this week:

Tuesday:  ATI, BHI, CREE, DAL, IBM, JNJ, MS, NFLX

Wednesday: AXP, EBAY, FFIV, GD, SNDK, URI, UNH, XLNX

Thursday:  ALK, ALTR, ETFC, ISRG, KLAC, MXIM, SWKS, LUV, SBUX, TRV, UNP, UAL, VZ

Friday:  GE, HON, KSU, KMB, MCD, ST

Q4 Earnings Reaction

Positive Reactions – NFLX, CREE, UNH, DAL, BHI, SNX, LLTC, TSM

More than 10% - NFLX

Negative Reactions – JNJ, IBM, AA, BAC, C, JPM, KBH, WFC,

More than -10% - KBH,

Reversal in progress –

Reversal of Initial Reaction –

The SPX Market Forecast is pointed up at 36.

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Setups

Horizontal Breakout:  AAL, AVGO, BRCM, EA, FB, GILD, LRCX, MNST, TXN, XLB, XLE, XLI, XLP, XLU, XLV, BX, DAL, GME, MFRM, SCSS    

Bull Flag: JCP, TWTR,

Potential Bullish Divergence: STX, NTAP, ADBE, WDC, IWM, CIEN, EXPE, SPLK, VSLR, XONE, Z,

Gap Up: EBAY,

Gap Down:  FFIV, SNDK, XLNX, AXP,

Bear Flag: TRIP, ROST, PCLN, MU, YHOO, BABA, XLF, FAS, XLY, BAC, C, CAR, CRM, GPRO, HOG, HPQ, MTW

C- Pattern:  SPY, QQQ, BABA, SWI,

Moves

New Highs:  WFM, GLD, NTES, SOHU, SWKS, UAL,     

H Breakout: CREE, CTRP

MACD Divergence Bounce: AKAM, ADSK, TSLA, UA,  

Gap Up:  NFLX

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65 out of 100 NDX stocks closed higher on Wednesday.

Leading NDX 100 stocks included: NFLX, BIDU, AMAT, VOD, WFM, AMZN, TSLA, SIRI, GMCR, PCLN, GOOG, EBAY, LVNTA, VIP, LRCX

Lagging NDX stocks included: XLNX, SNDK, CA, MYL, ALTR, ILMN, ALXN, CSCO, CTXS, QCOM, INTU, FISV, CELG

Leading stocks > +2% on Wednesday: GPRO, CTRP, CREE, YOKU, YELP, MFRM, MBLY, BABA, LNKD, XONE, AA, SPWR, UNG, CIEN, X, BX

Lagging stocks < -2.0% included: LC, DGLY, CMGE, IBM, GOGO, ETFC

Stocks to Watch on Thursday

Holding Above 30 DMA = 31

WFM, SIAL, CHKP, KRFT, MNST, SRCL, AVGO, HSIC, CTSH, FISV, NXPI, PAYX, SIRI, CELG, DTV, ADP, ATVI, BIIB, CERN, CSCO, CTRX, EA, GILD, NFLX, VOD, VRTX, AAL, ILMN, LLTC, REGN, TXN

Moving Above 30 DMA = 16

AMAT, BBBY, BIDU, BRCM, DISH, GMCR, GOOG, KLAC, LMCA, LRCX, LVNTA, MDLZ, NVDA, SBAC, SBUX, VIP               

Moving Below 30 DMA = 3

CA, ISRG, SYMC                           

Staying Below 30 DMA

CMCSA, ESRX, MYL, ROST, SPLS, WDC, CHRW, TSCO, COST, DLTR, MAR, QCOM, FB, STX, TRIP, EBAY, FAST, MSFT, ORLY, VRSK, ADI, AKAM, CHTR, DISCA, FOXA, LBTYA, PCAR, PCLN, VIAB, ADSK, EXPD, MAT, MU, ADBE, ALTR, CTXS, EQIX, INTC, INTU, YHOO, AAPL, NTAP, SNDK, AMGN, XLNX,ALXN, GRMN, TSLA, WYNN

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up