Stocks End Lower...Sharpest Decline in Six Weeks...DJIA Moves Back Into Negative Territory For The Year...

Only one sector moved higher on Monday…XLU, XLP and XLB were the strongest sectors while XLY was the weakest sector.

Breadth weakened as decliners led advancers 3.93 to 1 on the NYSE and 2.31 to 1 on the NASDAQ.

Monday – weakened, decliners led

Friday – mixed, mixed

Thursday – mixed, decliners led

Wednesday – weakened, decliners led

Tuesday – weakened, advancers led

SPY down 1.96 at 208.08 on 130.8 million shares

VIX up 2.19 at 16.52…

TNX up .09 at 23.42…

TLT down .67 at 118.33…on 9.1 million shares

XLF down .27 at 24.46…on 47.9 million shares

AAPL down .49 at 120.57 on 33.8 million shares

FB down .60 at 106.49 on 26.3 million shares

Technical Commentary:

IWM -1.17%, QQQ -1.06%, DIA -0.96%, SPY -0.93%.

Following six weeks of gains the broad indexes pulled back on Monday after reaching August resistance levels last week.  SPY, QQQ and DIA are each in a bull flag price pattern.  Sector ETFs XLB, XLE, XLF, XLI, XLK, XLV and XLY are also in a bull flag price pattern.  Time to look for a bounce and potential reentry.

Stocks in a bull flag price pattern include:  AAPL, ADBE, AAL, BIDU, FB, GILD, GOOGL, ILMN, MNST, MSFT, NFLX, SBUX, YHOO, BABA, FAS, HABT, PYPL, STI, and TPX.

PCLN -138.75, -9.57% gapped down on lower guidance.

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

The SPX Market Forecast is at 93.

Short-term Chart Targets:

SPY =...212.08…

QQQ = 114.11, 118.17…

IWM = 121.23…

Support Levels

SPY = 208.17

QQQ = 113.39

IWM = 115.42

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Setups

Horizontal Breakout: LC, NTES (long term), RCL, UAL, AVGO, BRCM, ESRX,  

Diagonal Breakout: BBY, RUN, SUNE, UA,

Bull Flag: SPY, QQQ, BABA, DAL, EXPE, GLW, GME, HABT, HPQ, SFUN, ULTA, V, AAPL, ADBE, FB, GMCR, GOOGL, ILMN

At Support: LVS, MPEL, TLT, CELG, ROST, WBA, WDC,   

C- Pattern: 

Moves 

Bull Flag Bounce: JUNO, PYPL, SLCA, SOHU, W, YNDX,   

MACD Divergence Bounce: VSLR, 

Bounce: AMBA, GPRO, VXX,

Gap Down: PCLN 

Support Break: AA, BX, CYBR, JNPR, INTC, MU 

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10 of 100 NDX stocks closed higher on Monday and one was unchanged.

74 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 6

PCAR, PCLN, ROST, SYMC, VOD, LVNTA

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Neutral