Tuesday, November 24, 2015

Stocks Rally Following Pre-market Pullback as Stocks Form Bull Flag and Breakout Setup Patterns...PANW Gaps...ADSK Higher

Five of nine sectors moved higher on TuesdayXLE, XLB and XLV were the strongest sectors while XLF was the weakest sector

Breadth strengthened as advancers led decliners 1.46 to 1 on the NYSE.

Tuesday – strengthened, advancers led
Monday – weakened, advancers led
Friday – strengthened, advancers led
Thursday – weakened, mixed
Wednesday – strengthened, advancers led


SPY up .28 at 209.35 on 98.8 million shares
VIX up .31 at 15.93…
TNX down .31 at 22.43…
TLT down .01 at 120.81…on 3.3 million shares
XLF down .07 at 24.50…on 29.1 million shares

AAPL up 1.13 at 118.88 on 42.8 million shares
FB down 1.21 at 105.74 on 23.5 million shares

Technical Commentary:
IWM +0.73%, DIA +0.14%, SPY +0.13%, QQQ -0.09%.

Media sources reported this early this morning that Turkey shot down a Russian fighter jet after repeated efforts to get the jet to respond failed.  ES futures were down more than 20 points from their overnight high after the report.

After opening lower the SPY rallied and then sold off to its intraday low at 207.41 just before 11 am ET when buyers made support and drove SPY up more than two dollars.  SPY closed at 209.35.

Q3 GDP was revised upward from 1.5% to 2.1% this morning in line with estimates.

Airline stocks AAL, DAL, LUV, UAL, JBLU and ALK were lower as oil prices moved higher after the downing of the Russian jet occurred in the Middle East.

Technical Observations:  Last week SPY, QQQ and DIA rallied after an eight-day pullback and closed near short-term resistance.  Price action can either pause before or at resistance pull back and then make a run at a new high from a higher low or it can break through resistance then pull back and test the breakout.  Based on Monday and Tuesday’s price action it appears that the broad markets are pausing before making a move towards a new high.  Numerous bull flags and breakout setups are appearing on charts today.  
                  (click image to enlarge) 

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 MFC green line is pointed up at 76. 

Short-term Chart Targets:
SPY =...210.12
QQQ = 115.47
IWM = 117.36, 118.34…
                   
Support Levels
SPY = 206.28
QQQ = 111.64
IWM = 114.52

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Setups
Horizontal Breakout: IWM, ADSK, AVGO, GRMN, JD, MNST, MSFT, NVDA, SWKS, TXN, XLNX, AIG, CSIQ, JUNO, NKE, SLCA,
Diagonal Breakout: SPY, AAPL, EBAY, FB, GILD, ORLY, SBUX, TSLA, BABA, FAS, LNKD, SCHW, STI, BAC, C, TPX, ZION,
Bull Flag: QQQ, ADBE, AMZN, ATVI, BIDU, CMCSA, COST, GOOGL, INTC, LLTC, LRCX, MYL, NFLX, TRIP, CRM, CTRP, ETFC, NTES, SINA, SOHU, VRSN, YELP, YNKX

Moves
New Highs: JBL, ROST,
H Breakout: ROST, CIEN, HPQ, KWEB
Bull Flag Bounce: GMCR, ILMN, QRVO,
MACD Divergence Bounce:
Bounce: FSLR, SPWR, TSL,
Gap Up: PANW, AVP, SPN, NBR,
Gap Down: CCL, DAL, RCL

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50 of 100 NDX stocks closed higher and one was unchanged on Tuesday.

60 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:
Moving Above 30 DMA = 1
CHTR

Moving Below 30 DMA = 3
EA, MAT, SNDK

6-month Intermediate Term Market Trend: Neutral
3-day Short Term Market Trend: Up

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