Short-term Sellers Exhaust...Buyers Take Over Form a Bull Flag Higher Low...Watch for Bounce...FSLR Sizzles...

Eight of nine sectors moved higher on Wednesday…XLB, XLE and XLK were the strongest sectors while XLF was the weakest sector.  Oil futures rose 85 cents to close at 32.22. 

                         

Breadth strengthened as advancers led decliners 1.81 to 1 on the NYSE and 1.77 to 1 on the NASDAQ.

Wednesday – strengthened, advancers led

Tuesday – weakened, decliners led

Monday – strengthened, advancers led

Friday – mixed, advancers led on NASDAQ

Thursday- weakened, decliners led on NASDAQ

SPY up .88 at 193.20 on 150.8 million shares, 6% below average volume

VIX down .26 at 20.72…

TNX down .03 at 17.42…

TLT down .26 at 131.21…on 9.0 million shares, 16% below average volume

XLF down .05 at 20.88…on 72.3 million shares, 4% below average volume

AAPL up 1.41 at 96.10 on 36.2 million shares, 30% below average volume

FB up 1.42 at 106.88 on 34.4 million shares, 23% below average volume

Technical Commentary:

IWM +0.96%, QQQ +0.95%, SPY +0.46%, DIA +0.32%.

Oil and stock futures moved lower overnight Tuesday evening and continued moving lower for the first hour of trading where SPX formed a reversal pattern and started an uptrend moving higher into the close.

SPY, DIA, QQQ and IWM bounced off their respective 30 DMA on Wednesday forming a low day in a bull flag price pattern again closing above their 30 DMA.  Watch for a move above Wednesday high and potential bounce entry on Thursday into these index ETFs and many individual stocks.

Eight of nine sectors rose, TLT bonds fell and TNX interest rates fell.

Twenty-four of 30 Dow stocks were rose on Wednesday led by  UTX, AAPL, INTC, WMT, HD, JNJ, CSCO, MMM, TRV and KO.

FSLR +7.66, +12.40% on positive earnings reaction.

VRSK +3.64, +5.35% leads NDX on positive earnings reaction.

EIX +2.85, +4.39% on positive earnings reaction.

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

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Strong Stocks:

Bull Flag Bounces include: CMCSA, PYPL, AVGO, MXIM, UTX

  

Bull Flag Setups include:  SPY, QQQ, DIA, XLE, XLB, XLK, NFLX, RCL, CCL, HAL, SLG, CTRP, JD, ADBE, PCAR, TXN, ADI, MU, AMZN, EBAY, EXPE, FB, TRIP, YHOO, CTXS, LRCX, PCLN, WFM, AXP, DIS, IBM, MSFT, DD, PG, VZ, CVX, GE, CNX, CSRA, GRMN, DO, FCX, KMI, QRVO, DO, FDX, URI

Horizontal Breakouts include: CHK, M, WHR, WMT, WY, OI, AA, RAI, AN, BCR, ES

Horizontal Breakout Setups include: ATVI, MAT, AKAM, MAR, EA, MDLZ, LUV, VIAB, AAL, JNJ, IWM, WMT, COH, DG, PVH, HD, PCG, DRI, DPS

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Short-term Movers:

SPX gainers:  CHK, FTR, MSI, TSO, UAL, ADS, FSLR, WHR, HCN, EIX, OI, LUV, HPQ, GPS, DHI, TGT, VTR, ALLE, UTX, NRG, DAL, WMB, SLG, IR, SEE, KORS, SYF, HCP, JNPR, ADS, COH, MAS, IBM, HAS, ES

SPX losers:  SWN, PRGO, RRC, CNX, APC, RIG, EQT

NDX gainers:  NVDA, NCLH, AMAT, ATVI, QCOM, TSLA, NTAP, BBBY, EA, MNST, ADSK, YHOO

NDX losers:  TRIP, MU, EXPE, DISCA, ALXN, ILMN, NFLX


YTD:

SPX Leaders:  NEM, KORS, FOSL, TSN, M, ADT, SE, CTL, KMI, URBN, (174, +9)

SPX Losers: ESV, MRO, CHK, DVN, WMB, MPC, RIG, URI, VRTX, COP

NDX Leaders:  MAT, FAST, PCAR, FISV, HSIC DLTR, ROST, AKAM, ORLY, CMCSA (25, +5)

NDX Losers:  INCY, VRTX, TRIP, REGN, BMRN, WDC, ALXN, TSLA, MU, ILMN

DJI Leaders:  VZ, WMT, XOM, MMM, PG, KO, UNH, JNJ

DJI Losers: AXP, BA, GS, INTC, JPM, DD, DIS, AAPL, MSFT, 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 68. 

82 of 100 NDX stocks closed higher on Wednesday.

62 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 9

EA, GILD, INCY, MDLZ, MSFT, SBAC, SNDK, SWKS, VRSK

Moving Below 30 DMA = 1

SYMC

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Neutral