Bull Flag Setups...Stocks Start to Bounce...

Four of nine sectors moved higher and one was unchanged on Monday…XLV, XLU and XLP were the strongest sectors while XLE was the weakest sector.  Oil futures fell 1.32 to close at 43.24.

Breadth weakened as decliners led 1,639 to 1,416 on the NYSE and advancers led 1,369 to 1,228 on the NASDAQ.

Monday – weakened, decliners led on the NYSE

Friday – strengthened, advancers led

Thursday - strengthened, decliners led

Wednesday – strengthened, decliners led

Tuesday – weakened, decliners led

SPY up .17 at 205.89 on 74.3 million shares, 8% below average volume

VIX down .15 at 14.57

TLT up .41 at 130.865…on 4.9 million shares, 27% below average volume

Technical Commentary:

IWM +0.29%, QQQ +0.28%, SPY +0.08%, DIA -0.20%,

IWM, QQQ, and SPY rose on Monday and are in bull flag patterns. 

Watch for a potential bull flag bounce tomorrow in SPY, DIA, IWM and many individual stocks.

It is important to continue defensive until a price bounce occurs.

Watch for potential bearish trades on the ETFs below last week’s low:

SPY support low = 205.03

DIA support low = 176.29

QQQ support low = 104.88

IWM support low = 110.10

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.

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include:  SPY, DIA, FAS, XLB, XLE, XLF, NXPI, VIAB, DFS, AXP, PXD, NOV, ULTA, SWN, HOG, TSCO, AFL, BG, EGN, CL, FTNT, HAL, IR, MJN, SCI, PNR, NEM, AEM,

Bull Flag Bounces include:  PCAR, AMZN, XLV, XLY, ESRX, BSX, ISRG, SKX, COH, CTXS, EQT,

Horizontal Breakout Setups include: SVXY, FB, MMM, HAS, BMY, JNJ, OLN, ETP, MDLZ, CHTR, TSN, GLPI

Horizontal Breakout include:  NWL, PPC, HRL

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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 SPY MFC green line is flattened at 40, continue to be defensive.

59 of 100 NDX stocks closed higher and three were unchanged on Monday.

31 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 7

ADSK, DISH, HSIC, ISRG, PCAR, ROST, WFM

Moving Below 30 DMA = 3

CSX, DISCA, NTES

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Neutral