Wednesday, December 9, 2015

Consolidation SPY, QQQ...DD to Buy DOW...WYNN Gaps Up, COST Gaps Down...Bull Flag Time...

Three of nine sectors moved higher on WednesdayXLB, XLE and XLU were the strongest sectors while XLK was the weakest sector

Breadth strengthened as decliners led advancers 1.52 to 1 on the NYSE and weakened 2.26 to 1 on the NASDAQ.

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


SPY down 1.61 at 205.34 on 162.2 million shares
VIX up 2.01 at 19.61…
TNX down .30 at 22.08…
TLT down .13 at 121.68…on 8.9 million shares
XLF down .28 at 23.96…on 51.4 million shares

AAPL down 2.61 at 115.62 on 46.3 million shares
FB down 1.89 at 104.60 on 23.5 million shares

Technical Commentary:
QQQ -1.52%, IWM -1.12%, SPY -0.78%, DIA -0.44%.

The SPX opened lower and rallied in the first hour until the EIA Petroleum Status report at 10:30 am ET.  Weekly oil inventories dropped 3.6 million barrels with increases in gasoline of 0.8 million barrels and 5.0 million barrels in distillates.  Signs of easing demand appeared to be a selling catalyst with the SPX dropping over 40 points from its high in the next two hours.  The SPX rallied 15 points in the last two hours of trading and finished at 2047.62 -15.97 for the day.  

SPY continues to consolidate inside a symmetrical triangle while QQQ consolidates in an ascending triangle.  The big news of the day was that DJIA component DD will acquire DOW.

Setups for Thursday:
Bull Flags NXPI, BIDU, TSLA, MYL, XLNX, NFLX
(click image to enlarge)

30 DMA Breakout – CTXS, PYPL, ADP, BIIB, AMGN, REGN, CERN, WDC, STX

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

The SPX MFC green line is down at 48. 

Short-term Chart Targets:
SPY =...209.976
QQQ = 115.47
IWM = 117.93…
                   
Support Levels
SPY = 204.75
QQQ = 111.84
IWM = 113.36

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Setups
Horizontal Breakout: BABA, W, GMCR,   
Diagonal Breakout: SFUN, VXX,  
Bull Flag: QQQ, AIG, CRM, CRUS, CSIQ, DAL, ETFC, GOGO, JBLU, KWEB, QRVO, SCHW, VRSN, YELP, ADBE, ADSK, AMZN, AVGO, GOOGL, JD, MNST, MSFT, NVDA, TSLA, XLNX
At Support: SPY, IWM, C, FAS, MS, NKE, SVXY, BIDU, EA, EBAY, LLTC

Moves
New Highs:  DD, DOW
H Breakout: SONC
Bull Flag Bounce: SEDG, SLCA
Bounce: AA,
Gap Up: MPEL, WYNN, TERP, SUNE
Gap Down: JBL, COST
Support Break: BAC, JNPR, NCLH, STI, TPX, V,

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11 of 100 NDX stocks closed higher on Wednesday.

36 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:
Moving Above 30 DMA = 1
WYNN

Moving Below 30 DMA = 13
AAL, AAPL, ADBE, CA, COST, EA, ESRX, FB, PAYX, SBUX, SYMC, TXN, XLNX,  


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

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