Tuesday, September 15, 2015

SPX Nears Resistance...NDX Breaks Out...VIX Lowest Close Since Aug 20...Get Ready...

All nine sectors moved higher on Tuesday… XLI, XLF, XLV were the strongest sectors while XLU was the weakest sector.

Breadth strengthened as advancers led decliners 2.31 to 1 on the NYSE and 2.21 to 1 on the NASDAQ.

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


SPY up 2.45 at 198.46 on 113.7 million shares, below average volume
VIX down 1.71 at 22.54…
TNX up 1.01 at 22.81…
TLT down 2.33 at 119.25…on 11.8 million shares
XLF up .33 at 23.40…on 33.3 million shares

AAPL up .97 at 116.28 on 43.2 million shares, below average volume
FB up .59 at 92.90 on 18.8 million shares, below average volume

Technical Commentary:
IWM +1.13%, QQQ +1.18%, SPY +1.25%, DIA +1.43%.

So much for the notion that all buyers are waiting until the FOMC announcement on Thursday.  Is it possible that traders are making trading decisions on factors other than the Fed announcement?  That seems obvious because buyers pushed the SPY to its highest close since Aug 28. 

With the horizontal resistance and higher lows that have formed on the SPX/SPY, the now forming ascending triangle suggests that the market is more likely to move higher in the near future.  If the SPY breaks out  of 200 resistance expect the VIX to drop to sub 20 very quickly and options buying to become more attractive.  Traders that have been willing to sell high volatility over the past two weeks are on the verge of cashing in on a volatility drop.

NDX breaks out and closes above short-term resistance at 4,352 as buyers took MSFT, GOOG, GILD, PCLN, INTC and CSCO higher.  As of Tuesday’s close, 46 of the NDX 100 closed above their 30 DMAThirty-six of the NDX 100 are above their short-term resistance formed since the Aug 24 low.

FB, GILD, SBUX and SWKS have broken out of resistance. AVGO, INTC, NTAP and PCLN have also recently broken out.
                       (click image to enlarge)

AAPL, AMZN, CELG, ESRX, GOOGL, LRCX, MAR, MSFT, ROST, SNDK, TRIP and TSLA are breakout setups at their short-term horizontal resistance.

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 =...199.84...
QQQ = 105.61, 106.93
IWM = 115.70, 116.42…

Support Levels
SPY = 194.25, 192.59...
QQQ = 103.59, 100.63
IWM = 113.66, 111.60...


The SPX Market Forecast is pointed up at 36.

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Setups
Horizontal Breakout: IWM, SPY, DAL, ETSY, MS, NCLH, STI, ANGI, IBM, RAX, SWI, AKAM, AVGO, EA, ESRX, GOOGL, INTC, MAR, MSFT, SBUX, TSLA, XLNX,
Diagonal Breakout: AIG, CCL, PYPL, SPLK, V, CELG

Moves
New Highs: RCL,  
H Breakout:  QQQ, CRM, EXPE, NKE, SVXY, SWKS, TSL, UA, VRSN, CAR, GLW, LC, Z, BRCM, COST, GILD, LRCX, NTAP, PCLN, SWKS,
D Breakout: FAS, SHOP, TRIP,  
Bull Flag Bounce: BAC, BX, C, CTRP, ETFC, LVS, SCHW, TPX, ZION, AA, CIEN, CREE, CSIQ, JNPR, CMCSA, JD,
MACD Divergence Bounce: AMBA, W, SCSS, WYNN,
Bounce: BABA, HOG, SLCA, ATI, BBRY, DAVE, MTW, SPWR, UPL, ADSK, NFLX
Support Break: CYBR, SONC, TLT, VXX,


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Watch List Stocks
Leading stocks > +2% on Tuesday: SVXY, AMBA, SUNE, FAS, TBT, BABA, ETFC, FIT, SEDG, TSL, EXPE, UA, SWKS, MS, SLCA, BAC, RCL, RUN, YOKU, GPRO, PANW, BX, C, Z, UPL, DACE, KNDI, MTW, ATI, VIAV, ESI, CAR, SPWR, VSLR, AA, CREE, GLW, CIEN, CSIQ, FOGO
                                                       
Lagging stocks < -2.0% included: VXX, SONC, OCN, DGLY

92 of 100 NDX stocks closed higher on Tuesday.

Leading NDX 100 stocks included: VIP, NFLX, NTAP, TRIP, JD, WYNN, PCLN, AVGO, SWKS, YHOO

Lagging NDX stocks included: GMCR,VOD, MY

NDX Stocks to Watch on Wednesday:
Moving Above 30 DMA = 11
CA, CELG, COST, FISV, GILD, GOOG, SIRI, LMCA, EA, LVNTA, KHC

Moving Below 30 DMA = 0


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

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