Bullish Candles Galore as SPX Reverses From Lower Open and Rises 30+ Points...

Seven sectors moved higher on Wednesday…two moved lower…the strongest sectors were XEU, XLU and XLK…the weakest sector was XLF. 

Breadth strengthened as decliners led advancers 1.01 to 1 on the NYSE and 1.27 to 1 on the NASDAQ.

Wednesday – strengthened, decliners led

Tuesday – weakened, decliners led

Monday – strengthened, advancer led

Friday – strengthened, decliners led

Thursday – weakened, decliners led

SPY up .25 at 208.92 on 171.7 million shares, above average volume

VIX down .10 at 13.61…

TNX down .07 at 21.30…

TLT down .68 at 124.07…

XLF down .23 at 24.98…

AAPL up 1.75 at 115.24 on 101.3 million shares, almost double average volume

FB up .57 at 94.19 on 27 million shares

Technical Commentary:

IWM -0.19%, DIA + 0.06%, SPY +0.12%, QQQ +0.35%.

SPY, DIA, QQQ finish positive after opening lower and IWM finishes slightly lower while forming a long tail hammer.  SPX found support around noon and rose over 30 points to close higher on the day.  VIX reverses lower as fear subsides on SPX 30 point rally.

                   (click image to enlarge)

Two e-commerce companies gap in opposite directions on earnings reactions W +10.78, +28.24% and BABA -3.96, -5.12%.  CREE +1.39, +5.52% positive reaction.  QRVO, SWKS and CRUS rally as NXPI closes lower.

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

Earnings week of Aug 10

VSLR, CYBR, CREE, FOGO, JASO, RAX, XONE, BABA, W, JUNO, JCP, SINA, VJET, YY, NTES

Q1 Earnings Reaction

Positive Reactions – CAR, CTRP, HLF, KBR, MGM, MNST, NUS, NVDA, PCLN, VMC, ZU, EXPE, CCE, MOH, YRCW, WAGE, COLM, RCL, WETF, TPX, WU, AEE, FE, PKI, TUC, AMGN, VLO, UHS, WDC, AEL, ALGT, EEFT, GILD, JBLU, SHOP, SKX, X, SSNC, BWLD, PODD, SVU, NUVA, SCTY, ULTI, WYNN, CTRP, FISV, SLCA, SPWR,  NCLH, AMZN, P, MXIM, JNPR, V, SBUX, LUV, QLIK, SNDK, TXN, UA, WHR, GM, VRSN, CHKP, FFIV, FTNT, LVS, PKG, TMO, TSCO, VMW, ACE, APH, OC, BA, CHKP, IPG, CLI, CMG, LVS, MANH, TRV, VMW, LAD, HOG, WWW, ZION, HAS, HAL, GOOG, HTZ, HON, GE, NFLX, SCHW, EBAY, C, USB, DAL, BAC, WFC, JPM, NKE, AA

More than 10% - W, FSLR, HLF, NUS, NVDA, ZU, EXPE, CCE, MOH, YRCW, WAGE, COLM, SHOP, SKX, X, SSYS, BWLD, SVU, P, FTNT, SNDK, GOOG, GOOGL, HTZ, NFLX

Negative Reactions – BABA, AIG, ALL, AXTA, DIS, ETSY, GMCR, GOGO, HABT, NCLH, JD, SEDG, TSLA, UBNT, Z,  LNKD, FEYE, OCN, ESI, FB, MAR, SSYS, TWTR, YNDX, YELP, BIDU, BIIB, TRIP, STT, AAL, FSL, KLAC, MCD, UNP, SAVE, CELG, CA, CMCSA, ETFC, CAT, DOW, FCX, MMM, OSTK, IBM, KO, QCOM, AXP, AAPL, IBKR, ILMN, XLNX, VZ, BEAV, BHI, LLTC, MSFT, YHOO, EXAS, STI, UNH, MAT, KEY, YUM, FAST, CUDA, MU

More than -10% - ALL, ETSY, FIT, GMCR, HABT, SEDG, SUNE, LNKD, OCN, ESI, WFM, TWTR, YELP, BIDU, BIIB, TRIP, GIMO, SCSS, BEAV, SWI, CUDA, MU

Reversal in progress – LAD,

Reversal of Initial Reaction – HTZ, HON, GE, AA,

Short-term Chart Targets:

SPY = 211.45, 212.55...

QQQ = 113.17, 114.39…

IWM = 123.71, 125.09…

Support Levels

SPY = 206.80...

QQQ = 110.62, 109.78…

IWM = 121.01, 120.27...

The SPX Market Forecast is turned down at 48.

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Setups

Horizontal Breakout: STX,

Diagonal Breakout: SNDK, BBY, BRCM, CELG,

Bull Flag: EXPE, FSLR, RCL, TPX, UA, EA, NFLX, PCLN, WDC, X, 

Gap Up:  W

At Support: FEYE, QIHU, TASR, ZION, ATI, KWEB

Moves

H Breakout: P, SLCA, CREE, VJET, ADSK

MACD Divergence Bounce: CIEN, SEDG, IBM, TAN, AAPL, GRMN,  

Bounce: QQQ, SCTY, SONC, SUNE, BBRY, CAR, KKD, RAX, AKAM, CMCSA, COST, FB, GILD, MAR, TSLA,

Gap Up: UNG,

Gap Down: BABA, BAC, FAS, GPRO, HOG, JD, LVS, SHAK, ZION, HPQ, KWEB, VIAV, BIDU, JD, WYNN, YHOO

Support Break: SPY, IWM, AMBA, BAC, BX, C, CSIQ, DAL, FAS, JCP, MS, NKE, PANW, SCHW, SINA, SPWR, STI, SVXY, KNDI, UAL, EBAY, ILMN,

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Watch List Stocks

Leading stocks > +2% on Wednesday: W, SEDG, SUNE, RUN, ETSY, P, SCTY, CIEN, UNG, Z, UPL, CREE, VJET, CAR, KKD, RAX, BBRLY, SFUN

                                                       

Lagging stocks < -2.0% included: YOKU, SHAK, BABA, JD, FIT, TASR, GPRO, QIHU, RPD, FEYE, AMBA, SCHW, MBLY, CTRP, STI, CSIQ, ZION, VIAV, ASNA, KWEB, ATI, ANGI, DDD

55 of 100 NDX stocks closed higher on Wednesday.

Leading NDX 100 stocks included: ALEXN, REGN, FAST, MU, INTC, CTXS, AAPL, SIRI, LMCA, ADSK

Lagging NDX stocks included: JD, YHOO, BIDU, MYL, VIP, NXPI, WYNN, NFLX, KHC, TRIP

NDX Stocks to Watch on Thursday

Moving Above 30 DMA = 3

GILD, INTC, NTAP

Moving Below 30 DMA = 2

CSCO, NXPI

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Down