JPM +4% Positive Earnings Reaction...Financials Lead All Sectors...SPY Breaks Out New 2016 Closing High...

Seven of nine sectors moved higher on Wednesday …XLF, XLI and XLY were the strongest sectors while XLP was the weakest sector.  Oil futures fell .09 to close at 41.55. 

Breadth strengthened as advancers led decliners 3.42 to 1 on the NYSE and 3.34 to 1 on the NASDAQ.

Wednesday – strengthened, advancers led

Tuesday – strengthened, advancers led

Monday – weakened, advancers led on NYSE

Friday – strengthened, advancers led

Thursday - weakened, decliners led

SPY up 2.08 at 208.00 on 95.8 million shares, 1% above average volume

VIX down 1.01 at 13.84…

TLT up .46 at 131.39…on 5.1 million shares, 25% below average volume

Technical Commentary:

IWM +2.16%, QQQ +1.40%, DIA +1.03%, SPY +1.01%.

Oil paused on Wednesday.  Stock futures gained over night and JPM +2.51, +4.23% moved before the open on a positive earnings reaction and led other financial stocks higher.  XLF was strong all day and finished as the strongest sector.

SPY broke out of its April 1 short-term resistance at 207.14.  SPY short-term price target of 211.19.  SPY does have intermediate-term resistance levels at 208.50 and 209.75.  Today’s breakout suggests that a dividend adjusted new all-time high is achievable.

Our view has been that for the SPX to break out of all-time highs, the financial sector would have to revive and help lead the SPX higher. JPM’s positive earnings reaction may be the catalyst the sector needed to help lift the SPX.

SPY two-week support is 202.40.  Last week SPY pulled back -1.96% to its weekly low on Thursday of 203.09 before buyers appeared.  SPY is almost $5 above last week’s support with today’s breakout.  The multi-week trend continues to be up.

AA today regained Tuesday’s post earnings selloff.

JPM +2.51, +4.23% afteon a positive earnings reaction.

Monday – AA

Tuesday – FAST, CSX

Wednesday – JPM

Thursday – BLK, DAL, BAC, WFC

Friday- C, RAI, RF, SCHW

The broad market one year trend is sideways and the short-term trend is near resistance.  Risk can be balanced with bear call spreads above resistance, VXX short put spreads below support, TLT positions and bearish trades in stocks that are already below support in a down trend.  All according to your rules.

Technical analysis based trades should be closed before earnings.

Trade what you see, not…

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

______________________

Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include:  XLP, XLU, HD, CMCSA, CTSH, TMUS, VRTX

Bull Flag Bounces include: QQQ, IWM, XLK, XLV, XLY, SVXY, CCL, RCL, BABA, IBM, MSFT, PFE, UNH, AMAT, ATVI, BIIB, BMRN, CTXS, EBAY, ILMN, INCY, LRCX, NCLH, NVDA, TSLA, MXIM

Horizontal Breakout Setups include: QQQ, XLK, XLV, XLY, SVXY, PCAR, BABA, IBM, MSFT, PFE, AMAT, BMRN, CMCSA, CTXS, EBAY, ILMN, LRCX, NCLH, NVDA, MXIM, AAPL, ALXN, AMGN, YHOO, JNJ, ESRX, CVX

Horizontal Breakout include: IWM, SPY, DIA, FCX, RCL, ATVI, CAT, TXN, AMZN, V, NXPI

______________________

                                                                                                                                    

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 86. 

90 of 100 NDX stocks closed higher and one was unchanged on Wednesday.

80 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 13

ADSK, CSX, EA, HSIC, MYL, NTAP, PCLN, QCOM, SIRI, SWKS, SYMC, VIAB, VRTX

Moving Below 30 DMA = 1

STX

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up