Three of nine sectors moved higher on Friday …XLV, XLF and XLK were the strongest sectors while XLU was the weakest sector. Oil futures eased down .09 to close at 47.29. Oil is forming a potential bull flag.
For the week ended August 26,
XLF +0.42%, XLK +0.06%, XLB -0.53%,
Lagging sectors XLI -0.61%, XLY -0.69%, XLP -1.11%, XLE -1.46%, XLV -1.73%, XLU -2.23%,
Breadth weakened as decliners led 1,820 to 1,205 on the NYSE and led 1,487 to 1,326 on the NASDAQ.
Friday – weakened, decliners led, +3
Thursday – strengthened, advancers led, +4
Wednesday – weakened, decliners led, +0
Tuesday – strengthened, advancers led, +7
Monday – strengthened, advancers led, +3
SPY down .41 at 217.29 on 122.5 million shares, 106% above average volume
VIX up .02 at 13.65
TLT down .81 at 138.36…on 12.9 million shares, 107% above average volume
QQQ +0.15%, SPY -0.19%, IWM -0.20%, DIA -0.30%,
Earnings reactions on Friday
ADSK +5.17 +8.12%
ULTA -16.60, -6.12%,
GME -3.42, -10.63%,
Consider moving up stops on short term bullish trades that could pull back. All according to your profit protection rules.
Remember breakouts typically test about 70% of the time.
Technical analysis based trades should be closed before earnings. After-hours
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:
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 below 80 at 72, defensive. SPY is above short-term support, take defensive action if SPY breaks below 217, otherwise trend is short-term trend is neutral and stay positioned accordingly.
56 of 100 NDX stocks closed higher and three were unchanged on Friday.
58 NDX stocks are above their 30 DMA.
NDX Stocks to Watch on Monday:
Moving Above 30 DMA = 4
BMRN, CA, CHKP, VRSK
Moving Below 30 DMA = 5
ORLY, SBAC, TMUS, ULTA, VOD
6-month Intermediate Term Market Trend: Up3-day Short Term Market Trend: Neutral