Short-term Trend Resumes as Stocks, Indexes Bounce and Breakout to the Upside...

All nine sectors moved higher on Friday…XLF, XLE and XLV were the strongest sectors while XLU was the weakest sector.  Oil futures rose .47 to close at 38.49. 

For the week all nine sectors moved higher led by XLE, XLU, XLB and XLV all of which led the SPY.

                         

Breadth strengthened as advancers led decliners 1.34 to 1 on the NYSE and 1.84 to 1 on the NASDAQ.

Friday – strengthened, advancers led

Thursday - weakened, decliners led

Wednesday – strengthened, advancers led

Tuesday – weakened, decliners led

Monday – strengthened, advancers led

SPY up 3.22 at 202.76 on 137.9 million shares, 5% above average volume

VIX down 1.55 at 16.50…

TNX up .487 at 19.77…

TLT down 1.30 at 127.36…on 8.9 million shares, 7% below average volume

XLF up .57 at 22.49…on 64.4 million shares, 13% below average volume

AAPL up 1.09 at 102.26 on 27.4 million shares, 29% below average volume

FB up 2.09 at 109.41 on 20.6 million shares, 45% below average volume

Technical Commentary:

IWM +2.14%, QQQ +1.75%, SPY +1.61%, DIA +1.28%.

The Broad indexes gained for the fourth week in a row and finished Friday with their biggest daily gains of the week.

SPX gainers included: DVN, SWN, APC, MNK, FTI, THC, CPG, NRG, LM, HES, HAR, NOV, NWSA, CF, IVZ, APA, SCHW, PXD, CNX, WR, MS, CXO, MRO, AMG, BHI, DHI, KMI, EXPE and LNC (464).

NDX point leaders MSFT, AMZN, FB, GOOG, AMGN, INTC, CCO, BICU, BIIB, CMCSA, PCLN, ESRX, GILD, MDLZ, and AVGO contributed 35 of NDX’x 74 point gain on Friday.

ULTA +28.23, +17.28% on positive earnings reaction.

Six sectors XLU, XLP, XLE, XLB, XLI and XLK are positive for the year while SPY is down -0.54% YTD.

Trade what you see, not…

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

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include:  FOSL, WMB, ESV, CMCSA, NFLX, SBUX, GPRO, TASR, DD, DIS, GE, JPM, RIG, QRVO, GME, PG, XOM

Bull Flag Bounces include: SPY, QQQ, IWM, XLB, XLE, XLF, XLI, XLK, XLY, LNC, WRK, AAPL, ADBE, AMZN, EA, JD, PYPL, ROST, STX, WDC, CF, GT, CAT, GS, NKE, C, WFC, ETFC, MS, SCHW, CYBR, MU, BIDU, CTB,

Horizontal Breakout Setups include: QQQ, IWM, XLE, XLF, XLI, NXPI, CAVM, FCX, ATVI, LNC, WRK, PYPL, ROST, STX, WDC, C, WFC, ETFC, MS, WMT, GILD,

Horizontal Breakouts include: SPY, XLB, XLK, XLY, AVGO, INTC, LRCX, PCLN, JNJ, JD, GT, SCHW, BIDU, MYL, TSO, NFX, HD, PANW, UNH, XLV, CTXS, ZION,

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Short-term Movers:

SPX gainers:  URBN, CPGX, DG, MNK, CNX, EQT, MYL, ANTM, CVX, PRGO, OKE, FTI, NWSA, LYB, PXD, DVN, RHT, IRM, HES, MLM, MON, HPE, NUE, XRAY, NFX, ZBH, VTR, EOG, NRG, AET, NAVI 5

SPX losers:  WMB, RIG, POM, ESV, CHK, GCI, CMG 4

NDX gainers:  ULTA, SYMC, MYL, EXPE, JD, STX, CERN, LLTC, NTAP, CSCO, MNST, INTC, TSCO, AMAT, CA, TSLA, DISCA 3

NDX losers:  REGN, MU, NFLX, ALXN, VCA, LBTYA 3

YTD:

SPX Leaders:  NEM, CNX, KORS, URBN, FCX, FOSL, TSN, M, SE, CTL (269, +29, > 10p 84)

SPX Losers: WMB, RCL, ESV, MPC, ADS, DVN, LNC, CBG, TXT, WRK

NDX Leaders:  MAT, FAST, PCAR, PYPL, DISCK, ROST, ORLY, MAT, HSIC, FISV (41, +8)

NDX Losers:  INCY, VRTX, ENDP, REGN, ALXN, TRIP, ESRX, MU, ATVI, ILMN

DJI Leaders:  VZ, WMT, MMM, CAT, UNH, XOM, KO, CVX, JNJ, IBM (16, +2)

DJI Losers: GS, AXP, BA, JPM, INTC, V, DIS, PFE, MSFT, DD

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 92. 

95 of 100 NDX stocks closed higher on Friday.

87 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 11

CERN, CTRP, CTSH, ESRX, LBTYA, MYL, SBAC, TRIP, ULTA, VIAB, VOD

Moving Below 30 DMA = 0

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up