All nine sectors moved higher on Tuesday …XLE, XLF and XLY were the strongest sectors while XLU was the weakest sector. Oil futures rose 1.46 to close at 48.07.
Breadth strengthened as decliners led 2,608 to 584 on the NYSE and led 2,070 to 551 on the NASDAQ.
Tuesday – strengthened, advancers led, +9
Monday – strengthened slightly, decliners led, +1
Friday – weakened, decliners led, +1
Thursday – strengthened, advancers led, +9
Wednesday – weakened, decliners led, +3
SPY up 3.60 at 203.20 on 158.0 million shares, 62% above average volume
VIX down 5.10 at 18.75
TLT up .29 at 139.46…on 13.7 million shares, 85% above average volume
QQQ +2.19%, SPY +1.80%, IWM +1.55%, DIA +1.53%,
Stocks reverse course as futures gain Monday night and continue higher on Tuesday. SPX and SPY found buyers on Monday near their 200% S&R measuring target from Friday’s break of support and rallied big on Tuesday.
Oil rallied on Tuesday after bouncing from on similar low, from June 16, on Monday gained over 3% today. Energy rebounded big on Tuesday with eleven stocks among the top 25 SPX gainers: SWN, MPC, MRO, COG, MUR, DVN, NFX, CHK, XEC, RRC, HES
More to follow…
If Monday’s support lows hold and price bounces, we should look for entries according to our rules.
Positive Reactions: IHS
Negative Reactions: NKE
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.
Strong Stocks: Setups and Moves You Can Use
Bull Flag Setups include: NEM, MU, OKE, RIG, ULTA, MNST, SYK, AES, BCR, SYMC
Bull Flag Bounces include: JNJ, FISV, AVGO, IRM, GPS, UNH, XOM, RRC, CVX, SE, EQT, DLR, NFX, CNP, EQIX, CINF, AMT, SBAC
Divergence Bounce: SWN, TXN, ESRX, EA, INCY, CMCSA, DVN, ATVI, FCX, MLM, MUR, XEC, NRG, AKAM, FB, AMAT, BIDU, BBBY, BMRN, CELG, CERN, CTRP, EXPE FAST, INTU, JD, MNST, MSFT, NFLX, QCOM, TMUS, TRIP
Horizontal Breakout Setups include: SWN, IRM, GPS, DLTR, UNH, ROST, SE, EQT, COG, NFX, NI, CNP, CINF, HCN, UDR, SPG, AMT, TSCO
Horizontal Breakout include: JNJ, COG, DLR, AIV, AVB, EQR, ESS, GGP, KIM, MAC, SPG
New Highs include: JNJ, DLR, AWK, O, EIX, VTR, DG, CMS, WEC, NEE, PNW, FRT, KIM, MAC, CCI
Remember: “It’s a market of stocks, not just a stock market.”
Trade with the trend of the chart you are trading and continue to move your profit protection stops. Continue to follow your rules.
The SPY MFC green line is pointed down at 43, defensive. Remember MFC is a lagging indicator.
97 of 100 NDX stocks closed higher on Tuesday.
20 NDX stocks are above their 30 DMA.
NDX Stocks to Watch on Wednesday:
Moving Above 30 DMA = 10
ADP, CERN, CMCSA, ENDP, KHC, LRCX, NTES, SRCL, TMUS, TSCO,
Moving Below 30 DMA = 0
6-month Intermediate Term Market Trend: Neutral
3-day Short Term Market Trend: Down2-day Short Term Market Trend: Neutral