Small Caps Lead the Broad Index ETFs Again...Oil Stocks SPX Leaders...AVGO, HPQ Gap Up on EPS...

Seven of nine sectors moved higher on Friday…XLB, XLU and XLE were the strongest sectors while XLV was the weakest sector for the second straight day.  Oil futures rose +1.64 to close at 36.33. 

For the week all nine sectors moved higher led by XLE, XLF, XLI and XLK.  XLV was the weakest sector.

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Breadth weakened as advancers led decliners 1.84 to 1 on the NYSE and 1.47 to 1 on the NASDAQ.

Friday – weakened, advancers led

Thursday - strengthened, advancers led

Wednesday – weakened, advancers led

Tuesday – strengthened, advancers led

Monday – weakened, mixed

SPY up .66 at 200.43 on 129.2 million shares, 5% below average volume

VIX up .16 at 16.86…

TNX up .53 at 18.83…

TLT down .83 at 128.60…on 8.6 million shares, 10% below average volume

XLF up .09 at 22.28…on 57.4 million shares, 21% below average volume

AAPL up 1.51 at 103.01 on 46.0 million shares, average volume

FB down 1.19 at 108.39 on 24.9 million shares, 40% below average volume

Technical Commentary:

IWM +0.55%, DIA +0.40%, SPY +0.33%, QQQ +0.04%.

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Small cap IWM again led the broad market ETFs on Friday.  SPY made its highest close since Jan 5.  The broad index ETFs SPY, DIA, IWM, and QQQ are in a three week uptrend and nearing their 2016 highs made on Jan 4 and 5.

The SPX was led by gains in energy stocks including CHK, RIG, ESV, MUR... 

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MRO, SWN, COP and APA.

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HPE, AVGO and SWHC gapped up on positive earnings reactions, while AMBA gapped down on a negative earnings reaction.

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HPE gapped from one resistance level to the next and is a potential horizontal resistance breakout.

AVGO also gapped from one resistance level to the next and is its annual high at the 149 to 150 area.

SWHC closed above resistance to close at a new 52-week high and from some traders was a breakout entry.

AMBA lower after earnings had moved up 14 points over the past month and is down 5 points from its recent high.

On Thursday Feb 25, SPY broke out of double bottom resistance at 194.58 on Feb 1 with a six-week chart target of 208.07.  Monday’s pullback test was successful and old resistance became a new level of buying or new support on Tuesday.  After a four day gain of 3.5% as of Friday, be prepared for a potential bull flag pullback sometime next week.

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:  INTC, NKE, AMZN, ATVI, BIDU, EA, FAST, GOOGL, JD, LRCX, MNST, PYPL, ROST, SBUX, WFM, CF, MSI, TASR, GME

Bull Flag Bounces include: WMT, CTXS NFLX, SWKS, YHOO, HLF, KKD, INFN, CTB, EAT

Horizontal Breakout Setups include:  DD, MU, NXPI, PANW, MS, GLD, AXP, TRIP, HOG, BA, UNH, JPM, C, WFC, ETFC, MS, XLP, XLU, XLV, CSO, GS, HD, ESR, EBAY, VIAB, CAV, CHL, GPRO, SCTY

Horizontal Breakouts include: AAPL, DIS, JPM, PG, TSLA, STI, CYBR, ESV, MUR, RIG, MRO,

Gaps include:  AVGO, SOHU

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Short-term Movers:

SPX gainers:  CHK, ESV, RIG, MUR, MRO, RRC, CNX, FCX, SWN, WMB, APA, COP, APC, DO, NRG, HP, NFX, DVN, HPE, QRVO, OKE, LM, SIG, NOV, HES, AMG, ZION, URI, CFG, MOS, IP, WRK, CMA, AES, YUM, FITB, NBL, NTRS, F, CAT, CPGX, FOSL, KMX, XRX, GCI, PSX, C, MPC, RF, ADM, PBI, HBAN, AA, PVH, HOG, KEY, MCO, PWR, NAVI, GPS, GT, UNM, NUE, PLD, LEN, VNO, IVZ, TMO, STI, WY, DLPH, HST, VLO  7

SPX losers:  HRB, MNK, POM, KR, MSI, MON, TXT, ZTS, AGN

NDX gainers:  SWKS, WDC, MU, DISCA, ADSK, AVGO, STX, BMRN, YHOO, NFLX, VIAB, LMCA, DISH, AAPL, NXPI, SIRI, TSLA, SNDK  5

NDX losers:  ENDP, MYL, CTRP, DLTR, LLTC, INCY

YTD:

SPX Leaders:  NEM, FCX, KORS, FOSL, CNX, RRC, M, SE, CTL, KMI (251, +10)

SPX Losers: MPC, DVN, RCL, WMB, ADS, TXT, LNC, URI, ESV, BAC

NDX Leaders:  MAT, FAST, PCAR, PYPL, ROST, BBBY, FISV, HSIC, DISCK, CMCSA   (34, +1)

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

DJI Leaders:  VZ, WMT, CAT, MMM, XOM, PG, JNJ, UNH, KO, UTX (11, +0)

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

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 95. 

43 of 100 NDX stocks closed higher on Friday.

89 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 1

ALXN

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up