QQQ, FB Make New all-time Closing High...SPY, DIA Horizontal Breakout Setups...

Setups to Watch for Thursday

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Technical Commentary

The NDX made another new all-time closing high on Wednesday while the DJIA and the SPX continued below resistance. The RUT is in a sideways trading channel.

QQQ = New High

SPY, DIA = Ascending Triangle Price Pattern

FB +2.36, +1.79, breaks out of horizontal resistance makes new all-time closing highs following BAC add to US 1 list.

Up Trend: XLI, XLB, XLY, XLK, XLP, XLU

Sideways: XLF. XLRE, XLV

Down Trend: XLE

XLU broke out of horizontal resistance on Wednesday and shifts to up trend.

Breadth strengthened as advancers led 1,683 to 1,307 on the NYSE and decliners led 1,572 to 1,274 on the NASDAQ.

Wednesday – strengthened, advancers led, +7 sectors

Tuesday – strengthened, decliners led, +5

Monday – weakened, decliners led, +3

Friday – strengthened, advancers led, +9

Thursday – strengthened, advancers led on the NYSE, +4

QQQ +0.17%, SPY +0.13%, DIA -0.03%, IWM -0.18%,

SPY up 0.30 at 229.24 on 51.5 million shares, 27% below average volume,

VIX up 0.16 at 11.45

TLT up 1.64 at 122.24…on 15.7 million shares, 71% above average volume

Oil futures were up .68 to close at 52.38 on Wednesday.  

The SPY MFC green line is pointed up at 87 bullish. 

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral at Resistance

SPX and NDX Highlights

SPX up 1 point at 2,294 still a horizontal breakout setup on Wednesday.

SPX  gainers MCHP, CTSH, KSS, XR, JWN, PXD, AGN, ORLY, ALK, FIS, DG, HBI, UAA, KORS, AZO, COTY URBN, BLL, EBAY, GPS, VLO, M, CNC, MPC, EIX, ENDP

QQQ closes up 21 cents at 126.50, a new all-time closing high.

   

NDX point leaders: FB, AMZN, AAPL, CTSH, PYPL, EBAY, AMGN, ORLY, BIDU, MCHP, INCY, MDLZ, CHTR, TSLA and YHOO

57 of 100 NDX stocks closed higher and one was unchanged on Wednesday.

71 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 3

CTSH, DISH, PYPL

Moving Below 30 DMA = 6

AKAM, CELG, DISCA, GILD, INTU, XRAY 

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: XLB

MU, KLAC, CMCSA, SWKS, WDC, MSFT, ATVI, PCAR, TXN, EA,

V, DIS, JPM, UNH,

AMD, CFG, CCL, DD, FLEX, CF, ATI, SQ, HBAN, USB, LNG, NRG

One Day Pullback: MXIM, MS, UTX, CSCO, CC,

Bull Flag Bounces include: FB, BABA, NTES, XLY, COST, VIAB, DHI, FAST, (8)

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Horizontal Breakout Setups include: MXIM, XLK, PG, JD, YHOO, DIA, SPY, IWM, TLT, FAS, IBM, PCLN, NVDA, CSX, GOOGL, STX, XLNX, LRCX, ADSK, ROST, GS, MMM, AXP, GLW, X, GD, LUV, BA, XLI, TMUS, RCL, CMA,

Horizontal Breakouts include: FB, TSLA, EBAY, ADI, XLP, ROST, AMZN, MAR,

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New Highs include: AAPL, ADBE, AMAT, SOXL, AVGO, SYMC, SHOP, WB, MXIM, MCD, CHKP, DE

At Support Setups include: HAL, ETFC, WFC, BAC, STI, CAT, INTC, HIG, NUE, UPS, AKS, BHI, MT, HIG, VALE, MGM,

Support Bounce: STLD, CLF,

Break of Support: XOM, CHK, GM, HES,

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Earnings

This week:

Monday – CBOE, DO, FMC, FOXA, HAS, NOV, SALT, SYY, TSO

Tuesday – ADM, AKAM, BWLD, CAH, CHD, CNC, CSRA, DIS, EMR, GILD, ICE, MDLZ, PXD, TDG,

Wednesday – AKAM, ALK, CTSH, ORLY, FISV, GT, JEC, WFM, CTL, PRU

Thursday – REGN, VIAB, CVS, ATVI, CERN, EXPE, NVDA, K

Friday – CBG, MHK, VTR

Earnings Reports

Positive earnings reactions

PNRA +18.63, +8.69%

BWLD +7.60, +5.07%

CTSH +2.66, +4.95%

PXD +6.73, +3.85%

ORLY +9.46, +3.61%

ALK +3.10, +3.29%

Negative earnings reactions

AKAM -7.57, -10.64%

GILD -6.30, -8.61%

CSRA -2.25, -6.91%

ICE -2.89, -4.82%

JEC -2.17, -3.69%

After-hours reports

FISV -2.78, -2.58%

WFM

CTL

PRU

2016 Q4 EPS

EPS Positive Reactions

PNRA, BWLD, CTSH, PXD, ORLY, ALK, MDLZ, CDW, TDG, CNC, NOV, EMR, CHD, TSO, ICE, CBOE, ADM, CAH, HAS, SALT, FTNT, MTD, V, CLX, R, HSY, IDXX, BSX, EL, NXPI, SYMC, AMD, AAPL, AVY, ARNC, TMO, DHR, COH, NDAQ, ABC, SPG, LLY, AET, HCA, AMG, MXIM, VMW, WYNN, MSFT, KLAC, INTC, GD, ETFC, CMCSA, URI, RCL, LUV, EBAY, WDC, STX, LOGI, ROK, BA, HBAN, ISRG, NSC, ATI, GLW, RMD, DHI, DD, MB, BABA, CA, YHOO, SWKS, KSU, PG, CFG, COL, IBM, CHKP, NFLX, UNP, FAST, WFC, SNX, MSM, CUDA, GPN, MU, CAG, NKE, KMX, CCL, JBL

EPS Negative Reactions

AKAM, GILD, CSRA, ICE, JEC, KORS, FMC, GM, FOXA, NWL, DO, SYY, HBI, FEYE, GPRO, SKYW, CMG, AMZN, HIG, PSX, CME, CRUS, RL, R, FB, QRVO, PBI, D, ADP, UAA, UPS, MA, NUE, XOM, JNPR, SBUX, PYPL, GOOGL, JBLU, F, CAT, WHR, FFIV, LVS, CTXS, QCOM, MUR, FCX, STLD, CA, FCX, HES, STT, AKS, VZ, JNJ, LMT, MMM, TRV, HAL, MCD, GE, NTRS, CSX, C, CMA, MS, UNH, AYI, CMC, STZ, SCHN, RHT, BBBY, FINL, AGN, FDX, GIS, ADBE

Technical Trading Observations

Indicators can be helpful, however you should remember that indicators are lagging and secondary to price.  If the price action is up and the indicator is still pointed down, follow the price.  “Price is king” means price is most important.

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

Follow your rules and look for potential re-entry if you were stopped out of any profitable trades.

Remember breakouts typically test about 70% of the time.

Technical analysis based trades should be closed before earnings.

Trade what you see, not…

Stocks below support should generally be traded bearishly until a reversal pattern forms.

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