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SPY saw some resistance last week with the bears pushing hard at the daily 5 period moving average at 198.11. There is a triple support area from 197.37-197.21 with the daily 15/20 and weekly 5 pd ma. The daily stochastics have stalled which will result in either a daily mini pup on a break back up through the daily 5 pd ma or a cross down on a 5/15 min crossover down and break through daily 20 period ma. In the meantime, it could chop both ways intra-day. The daily upper bbs sit at 199.62 and daily lower bbs sit at 197.83 with 50 period ma at 194.71. The daily MSH triggers under 197.32.

Earnings season continues this week. We will continue to focus on the gapper/dumpers and possible sympathy plays.

<> Stocks to Watch <> : A lot of these are contingent on the SPY. If SPY forms daily mini inv pups, then SCRATCH the LONGS or cut down to shorter time frames. To be safe, make sure that the 60 min stochastics peaks out before taking short positions and short the RETEST FAILURES of the short area bumpers listed. DO NOT SHORT RIGHT INTO THE FIRST TEST if the 60 min is in a mini pup grind up. Get the 15/5 min to slip and 60 min to STALL at least on the stochastics and then position with a good 1 min stochs reversal down. Remember all stocks are anchored by the action of the SPY (or noodles) and contingent on the SPY movement unless there is a strong fade effect in place. * Don’t play breakout longs if the SPY is in a breakdown and vice versa *

*** Most stocks are mirroring the SPY intraday as well as daily. Therefore, track the SPY closely. Make note if your stocks are diverging or not as this could mean it’s a laggard that will ultimately revert to SPY or a fader that will magnify the move once the SPY reverses.

SNDK Short – SNDK has resistance at 93.93 with a daily inverse pup and potential mini inverse pup. The 60 minute may be trying to mini pup therefore, its best to wait out the 60 min stochs and get a cross down first. Shorts trigger on 93 breaks with a 60 min stochastics cross down for daily inverse pup breakdown to the 92.22-91.89 area which is the monthly 5 period ma at 92.09. If the lower range breaks then further tightening to 90.80-90.40-89.60 targets are next. Trail 93.81.

CAB Long - CAB got a huge daily volume spike on earnings back up through the daily lower trendline and 5 period ma at 57.34 as it peaked off the daily 15 period ma at 58.95. Longs trigger on pullbacks to the 57.70s-57.50s or a 59 break with a 1pt trail, which sets up a target to the daily 50 period ma near 60.60s.

Key resistances to short tests/long breakout: AAPL 97.85, SBUX 79.30

Key supports to long tests/short breakdowns: BMY 49, DAL 38

Earnings Reports This Week:

Mon: premarket: CALM, SOHU, TSN, CRNT, TA: postmarket: NQ, HLIT, AMKR, DENN, HLF, MERU, MSTR, SIMO, IDTI, PSMI

Tues: premarket: ACI, AKS, ITW, SIRI, UPS, WM, YNDX, GLW, ADM, BP, CPLA, HCA, HW, MRK, PCAR, TRW, UTHR, AUDC, ICON, LVLT, EXLS, WYNN, PFE, ARW, GNC, MSO, VSH, DSX: postmarket: LNDC, GPN, AIG, AXP, AMGN, IGT, AMCC, INAP, NEM, PCTI, BWLD, ANH, BOOM, CAP, CRAY, DWA, ESRX, EZPW, FARO, GNW, PNRA, POWI, PNTA, TWTR, ULTI, USNA, WSH, X, INVN, NTRI, VRTX, APC, MOVE, BBOX, CZR, CPWR

Wed: premarket: LO, SONS, GT, LPLA, LFUS, S, ADT, GRMN, HES, IACI, ICLR, INGR, LL, MGAM, MRGE, TASR, TFX, AMT, HUM, DX, SODA, NICE: postmarket:

LRCX, NOW, OTEX, STAA, AMC, SIMG, ABX, CAVM, CBT, CMO, DRIV, DRE, ELGX, EQIX, FORM, GLUU, HOLX, ISIL, MET, NEWP, PEIX, QUIK, ROVI, SAM, SFLY, STMP, TTEK, WTW, YELP, AKAM, KRFT, ATEN, MTW, ALL, CODE, WFM, CTRP, LPSN, TWTC, WSTL, MOBL

Thurs: premarket: AZN, RYL, TWC, CL, DDD, COMM, CTCM, TOWR, BCOR, VNTV, BDX, ENDP, FCN, GG, GNRC, IRDM, KMT, LLL, LM, MA, STRZA, TEVA, SWC, WWE, WLT, DISCA, DTV, MNTA, MOS, BUD, COT, STRA, SNE, MOD, GHM: postmarket: SPWR, SYNA, TNAV, TRLA, AXTI, BYD, GDOT, JLL, AFFX, CALD, CHEF, DGI, DVA, MXWL, OMCL, ONNN, OUTR, OPEN, PMCS, SGEN, SREV, SWIR, TSYS, WPRT, WU, WWWW, DATA, QLTY, PCYC, ARR, ARRS, BEAT, JIVE, :LBTYA, LYV, MCHP, OCLR, PLNR, TNDM, BRKS, HNSN, KERX, MELI, NKTR, PLXW, TSLA, DXPE, ESIO, GPRO

Fri: premarket: IMGN, PG, CVX, AXL, XLS, SBOE, ARNA

Earnings season continues ahead full steam this week. The SPY daily market structure high triggers under 197.32 so be aware of that area since there is also a triple support level there as well. Pace yourself and allocate accordingly.  - J