SPX Holds Support...

Six of nine sectors moved higher on Tuesday…XLU, XLP and XLV were the strongest sectors while XLK was the weakest sector. 

Breadth strengthened as advancers led decliners 1.42 to 1 on the NYSE and 1.08 to 1 on the NASDAQ.

Tuesday – strengthened, advancers led

Monday – weakened, decliners led

Friday – New Year Holiday

Thursday- weakened, decliners led

Wednesday – weakened, decliners led

SPY up .34 at 201.36 on 100.8 million shares, 2% below average volume

VIX down 1.36 at 19.34…

TNX up .03 at 22.48…

TLT down .49 at 120.96…on 6.2 million shares, 16% below average volume

XLF up .09 at 23.46…on 42.3 million shares, 3% above average volume

AAPL down 2.64 at 102.71 on 55.7 million shares, 39% above average volume

FB up .51 at 102.73 on 23.2 million shares, 16% above average volume

Technical Commentary:

IWM +0.22%, SPY +0.17%, DIA +0.06%, QQQ –0.17%.

The SPX and SPY held support on Tuesday with SPY forming a dragon fly doji and DIA and IWM forming a hammer.

Oil fell 74 cents to close at 36.14 on Tuesday leading energy stocks ESV, DO, RIG, NOV, BHI and APA lower.

FSLR +7.96% after GS upgrade to Buy raise target from 61 to 100.

FLIR +5.43% after Raymond James upgrade to Strong Buy.

MU +3.42% forms reversal horizontal breakout setup.

M +3.27%, Buckingham Research Buy rating.

REITs were on the rise with several bull flag bounces on Tuesday with MAC, KIM, PSA, AIV, HCN, EQIX, GGP, BXP, AVB, HCP, O, PLD, CCI, EQR and SPG all posting 2% plus gains.

YTD:

SPX Leaders:  CHK, FSLR, FLIR, CNX, SWN, GPS

SPX Losers: FOSL, ILMN, VRSN, QRVO, OI, CMG

NDX Leaders:  MU, DLTR, CTRP, TMUS, SBAC, ROST

NDX Losers: ILMN, JD, TSLA, REGN, AMZN, LVNTA, NFLX

DJI Leaders:  WMT, MCD, MRK, VZ

DJI Losers: AXP, DIS, DD, JPM, GS

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 SPX MFC green line is pointed down at 45.  

Short-term Chart Targets:

SPY =...203.40…

QQQ = 110.65…

IWM = 111.68…

                   

Support Levels

SPY = 198.59

QQQ = 108.12

IWM = 109.08

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Setups

Horizontal Breakout: FINL, PLAY, SEDG

Bull Flag: MYL, AA, AIG, CCL, CSIQ, JASO, RCL, SCTY, SOHU, SONC, SPWR, YNDX,

Potential Bullish Divergence: SPY, QQQ, IWM, AAPL, ADSK, AMZN, COST, GILD, LLTC, MNST, NFLX, ORLY, SBUX, SWKS, CRM, CRUS, ETFC, JBL, QRVO, SCHW, TPX, TSL, YELP, ZION

At Support: ATVI, INTC, LRCX, TERP, WUBA

Moves

New Highs: BXLT, FSLR,

H Breakout: BABA

Bull Flag Bounce: CAH, CNC, DPS, DRI, KMB, KR, MCD, MPEL,

MACD Divergence Bounce: BIDU, NVDA, XLNX, LNKD, NKE,

Bounce: ADBE, FB, MSFT, ROST, FAS, SVXY,

Gap Up: FSLR, FIVE, SEDG
Support Break: AVGO,

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52 of 100 NDX stocks closed higher and two were unchanged on Tuesday.

23 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 4

MDLZ, MU, NVDA, SRCL

Moving Below 30 DMA = 2

AVGO, QCOM

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Down