Strong earnings continued to keep the market afloat.  The market has been on a 2-day run after AAPL’s blowout earnings on Tuesday after the market.  Last night, CRUS reported a strong quarter, sending its shares up +18.62% today.  EQIX shares were also on fire, up +13.25%, after another outstanding quarter.  REGN jumped +9%, reporting first-ever profittable quarter and lifting its guidance.

The market kept gliding up, with SPX ending just shy of 1400.

After the market, AMZN vaulted $27, or almost +14%, after reporting its own blowout quarter (helped by sales from its Kindle), rivaling that from AAPL.  EXPE popped a whopping +18.73%, topping estimates.  PCLN also jumped in after-hours.  SWKS gained +5% after a healthy report.  WDC also had a good quarter; its shares first popped after the report, but, was then traded lower, down 8.5%.  FIO also experienced similar movement; after beating the estimates, its shares first went up, then settled down 7.35%.  The trading in after-hours on WDC and FIO merely pulled these two stocks back into the neutral zone.  I suspect that buyers can still come in tomorrow.  DECK shares tumbled 18.66% after giving a dismal report.  DECK shares have broken support with more room to go lower.  People may be tempted to play a bounce on DECK, but, I’d wait a while.  DECK has support at $55, but, could test $50.  I’m taking DECK off of my watchlist for now.

The Dow was up +113.9 points; SPX added +9.29 points; Nasdaq gained +20.98 points:

SOXX (semiconductors) bounced +2.17%.  BTK (biotechs) added +1.16%.  XLF (financials) gained +0.85%.  IGV (software) was up +2.25%.

SPX

SPX added +9.29 points to close at 1399.98.  Its daily MAs and MACD turned up.

Nasdaq

Nasdaq gained +20.98 points to close at 3050.61.  It closed right at its 30-day MA.  Its MACD was higher.

This market has spent most of this April month in a very volatile environment.  Just this week, the market almost broke down on Monday and Tuesday.  But, it shot right back up after AAPL’s earnings.  Now, we’re looking at a breakout!  VIX has sunken back below 17.  This bodes well for a strong month of May.  The Dow has already turned bullish, which could mean now the mid- and small-caps can now follow.  This also explains many of the double-digit rises after earnings.

After the market, S&P downgraded Spain and created some selling pressure on the market futures.  This could give the market a nice "excuse" to take a breathe, after rallying 40 points on SPX.  Be patient tomorrow.  Facebook IPO is also coming in May.  This market should resume higher soon.

Good night and HappyTrading! ™

Sign up for FREE membership!