QQQ, SPY and IWM Horizontal Breakout...DIA Horizontal Breakout Setup...

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All nine sectors moved higher on Tuesday…XLY, XLI and XLV were the strongest sectors while XLU was the weakest sector.  Oil rose .10 to close at 29.12. 

Breadth strengthened as advancers led decliners 4.32 to 1 on the NYSE and 3.54 to 1 on the NASDAQ.

Tuesday – strengthened, advancers led

Monday – Washington’s Birthday Holiday

Friday – strengthened, advancers led

Thursday- weakened, decliners led

Wednesday – strengthened, advancers led on the NYSE

SPY up 3.15 at 189.78 on 120.2 million shares, 30% below average volume

VIX down 1.29 at 24.11…

TNX up .30 at 17.78…

TLT down 1.39 at 130.11…on 11.7 million shares, 7% above average volume

XLF up .33 at 20.82…on 79.2 million shares, 4% above average volume

AAPL up 2.65 at 96.64 on 49.0 million shares, 15% below average volume

FB down .40 at 101.61 on 45.6 million shares, 1% above average volume

Technical Commentary:

IWM +2.37%, QQQ +2.25%, SPY +1.69%, DIA +1.39%.

Following Thursday and Friday’s support bounce a reversal horizontal breakout occurred today on SPY, QQQ and IWM.  DIA and many individual stocks are horizontal breakout setups on Tuesday’s close.

ADT +47.53% soared on a buyout offer to lead the SPX.  Other SPX leaders included CHK, FCX, WMB, QRVO, YHOO, WYNN, MU, HRL, SWKS, SPLS, JNPR, NVAI, UNM, TRIP, SIG, AA, KMX, NTAP, PCL, RCL, GCI, WY, FMC, PCLN, BBY, NVDA, ADI, STX and UA.

All sectors rose, TLT bonds fell and TNX interest rates rose.

The NDX +2.12% and QQQ +2.25% were led by point gainers MSFT, AMZN, CSCO, QCOM, PCLN, GILD, GOOG, AAPL, YHOO, BIIB, AMGN, MDLZ, CMCSA, TXN, FOXA, BIDU, REGN, ADBE and AAGO.  An impressive 96 NDX stocks rose while fifty-one of those gained 2.50% or more.

Twenty-eight of 30 Dow stocks rose on Tuesday led by gains in BA, CAT, UNH, CSCO, AAPL, HD, NKE and GE.

Stocks below support should generally be traded bearishly until a reversal pattern forms.

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Horizontal Breakouts occurred on Tuesday in SPY, QQQ, IWM, ADP, CA, PCAR, BBY, MAR, RCL, PCLN, QCOM,

Horizontal Breakout Setups include: UA, CHKP, FAST, FISV, CAT, DD, MMM, ROST, JNJ, AAL, AAPL, AKAM, ALXN, BBBY, BIDU, CELG, COST, CTRP, EA, GILD, JD, LLTC, MXIM, NTAP, TRIP

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YTD:

SPX Leaders:  NEM, KORS, ADT, SE, TSN, O, EQT, M, CTL, CHRW (129, +23)

SPX Losers: CHK, ESV, WMB, MRO, MPC, URI, DVN, TSO, LNC, ADS

NDX Leaders:  MAT, PCAR, FAST, FISV, XLNX, HSIC, ROST, CMCSA, DLTR, ORLY (12, +5)

NDX Losers: TSLA, INCY, VRTX, NCLH, BMRN, WDC, REGN, ADSK, ATVI, MU

DJI Leaders:  VZ, WMT, XOM, MMM, PG, KO, MCD

DJI Losers: AXP, BA, GS, INTC, JPM, DD, DIS, IBM, HD, V 

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 up at 18. 

Chart Signals was watching for the MFC green line to rise on Tuesday after flattening out on Friday and it did.  Congratulations to anyone that was watching and was able to take advantage.

96 of 100 NDX stocks closed higher on Tuesday.

34 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 12

ADI, BBBY, DLTR, EXPE, GILD, LBTYA, MXIM, NTAP, PCLN, QCOM, ROST, STX

Moving Below 30 DMA = 0

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up