Tuesday, October 6, 2015

SPY, QQQ Pause After Four Day Rally, Form Bearish Harami...WYNN, LVS, MGM, Rise...DD Gaps...AA Earnings on Thursday...

Three of nine sectors moved higher on Tuesday…XLE, XLB, XLK were the strongest sectors while XLV was again the weakest sector.

Breadth weakened as advancers led decliners 1.24 to 1 on the NYSE and decliners led advancers 1.26 to 1 on the NASDAQ.

Tuesday – weakened, mixed
Monday – strengthened, advancers led
Friday – strengthened, advancers led
Thursday – mixed, mixed
Wednesday – strengthened, advancers led


SPY down .68 at 197.79 on 110.2 million shares, below average volume
VIX down .14 at 19.40…
TNX down .21 at 20.35…
TLT up .53 at 123.40…on 5.6 million shares, below average volume
XLF down .11 at 23.07…on 29.8 million shares, below average volume

AAPL up .53 at 111.31 on 48.8 million shares, below average volume
FB down 1.21 at 92.80 on 22.4 million shares, below average volume

Technical Commentary:
DIA +0.07%, SPY -0.34%, QQQ -0.47%, IWM -0.69%.

SPY and QQQ paused after a four-day rally.  Both formed a bearish harami near short-term resistance a potential signal that some short-term traders use to move their stops on bullish trades.

VIX closed slightly lower for its lowest close since Aug 20, but VIX is still above its intraday low on Sep 19.

Fifty-eight NDX stocks are above their 30 DMA on Tuesday.

WYNN and LVS moved higher for the third straight day as both stocks closed above their 30 DMA.  That is the first day above the 30 DMA for both stocks since Aug 10.  MGM closed higher for the fifth straight day.

DD +7.66% gapped higher following the announcement that CEO will retire.  Reminiscent of MSFT and MCD.

Earnings season starts on Thursday, October 8, when AA reports after the close.

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 =...197.68, 199.99
QQQ = 105.61, 106.93
IWM = 113.92…

Support Levels
SPY = 190.56, 189.12...
QQQ = 102.27, 101.34
IWM = 106.99...

The SPX Market Forecast is pointed up at 46.

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Setups
Horizontal Breakout: IWM, JCP, MBLY, MS, QIHU, RUN, SHOP, TASR, V,
Diagonal Breakout: QQQ, SPY, AIG, BAC, BBY, C, CTRP, CYBR, DAL, ETFC, FAS, FIT, PANW, SCTY, SEDG, SOHU, STI, SUM, SUNE, SVXY, TPX, UA, ULTA, ZION, SWI, VSLR,
Bull Flag: CRM, CRUS, NKE, NTES, TLT, VRSN, HP, IBM, SFUN
Bear Flag: AMBA

Moves
New Highs: P, AA,
H Breakout: SINA, W, JUNO, LC,
D Breakout: FSLR
Bounce: GME, LVS, TSL,
Gap Up: GLD
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Watch List Stocks
Leading stocks > +2% on Tuesday: FSLR, RUN, W, TASR, TSL, AMBA, LVS, GME
           
Lagging stocks < -2.0% included: FIT, ETSY, DAL, SUNE, JBLU, NCLH, RCL, ETFC, SUM, CYBR, SCHW, PYPL, CCL, NTES, VRSN, PLAY

41 of 100 NDX stocks closed higher on Tuesday.

Leading NDX 100 stocks included: WYNN, MU, STX, SNDK, VIAB, SYMC, INTC, KLAC, CSCO, NTAP, NVDA

Lagging NDX stocks included: ILMN, BMRN, AAL, VRTX, WBA, DLTR, CELG, JD, BIIB, AVGO

NDX Stocks to Watch on Wednesday:
Moving Above 30 DMA = 3
DISCA, WYNN, YHOO

Moving Below 30 DMA = 4
CERN, EA, ROST, WBA

6-month Intermediate Term Market Trend: Down

3-day Short Term Market Trend: Up

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