Bull Flags Bounce...We Hope You Were Watching as Suggested in Monday's Post...Uptrend Resumes in SPY, DIA, IWM, QQQ

All nine sectors moved higher on Tuesday…XLE, XLI and XLB were the strongest sectors while XLU was the weakest sector.  Oil futures rose 1.29 to close at 44.53.

Breadth strengthened as advancers led 2,337 to 710 on the NYSE and led 1,676 to 913 on the NASDAQ.

Tuesday – strengthened, advancers led

Monday – weakened, decliners led on the NYSE

Friday – strengthened, advancers led

Thursday - strengthened, decliners led

Wednesday – strengthened, decliners led

SPY up 2.56 at 208.45 on 77.1 million shares, 5% below average volume

VIX down .94 at 13.63

TLT up .01 at 130.87…on 4.3 million shares, 36% below average volume

Technical Commentary:

QQQ +1.37%, DIA +1.25%, SPY +1.24%, IWM +1.01%,

IWM, QQQ, and SPY bounced in their bull flag patterns giving an entry signal.  QQQ bounced in its intermediate term flag and also gave an entry signal. 

DIS -6.08, -5.70% negative earnings reaction after the close.

Earning’s Announcements:

Positive Reactions:  AKRX, MRD, PAH, TDG, WWAV, DNB, IFF, AGN,

Negative Reactions: SCTY, ZBRA, PBYI, RBC, PINC, NCLH, 

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:  TSN, VIAB, NOV, ULTA, HOG, TSCO, EGN, HAL, NEM, AEM, CHK, MRO, MUR,

Bull Flag Bounces include:  SPY, DIA, FAS, XLB, XLE, XLF, NXPI, DFS, AXP, PXD, SWN, AFL, BG, CL, FTNT, IR, MJN, SCI, PNR, DNR, SM, WLL, SDRL, HES, DVN, APC, DOV, OI, AMG, RRC, LNC, NBL, URI, ETFC, SCHW, BAC, C, JPM, WFC, MS

Horizontal Breakout Setups include: PCAR, XLV, XLY, OI, ESRX, BSX, ISRG, COH, CTXS, EQT, FB, MMM, HAS, BMY, OLN, ETP, CHTR, GLPI, WYNN, TRIP, DISCA, DE,

Horizontal Breakout include:  AMZN, CTXS, SVXY, JNJ, MDLZ, LUK, 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 turned up at 45, shift to short-term bullish.

90 of 100 NDX stocks closed higher on Tuesday.

47 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 16

ADBE, BIIB, BMRN, CSX, DISCA, FAST, FOXA, INTU, LVNTA, NTES, PAYX, QCOM, SBAC, TRIP, VOD, VRSK,

Moving Below 30 DMA = 0

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up