Gap Open...Retrace...Buyers Join In...SPY Forms Hammer...

Six of nine sectors moved higher on Thursday…XLU, XLP and XLB were the strongest sectors while XLV was the weakest sector.  Oil futures rose .40 to close at 46.39.

Breadth strengthened  as decliners led 1,577 to 1,452 on the NYSE and led 1,731 to 866 on the NASDAQ.

Thursday - strengthened, decliners led

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

Monday – weakened, decliners led on the NYSE

Friday – strengthened, advancers led

SPY up .06 at 206.56 on 88.7 million shares, 9% above average volume

VIX down 0.28 at 14.41

TLT down 0.60 at 131.01…on 5.9 million shares, 11% below average volume

Technical Commentary:

DIA +0.07%, SPY +0.03%, QQQ -0.44%, IWM -0.53%,

Stock futures rose overnight and SPY gapped higher on the open.  Selling ensued and the morning gap filled.  At midday buyers took control and SPY, DIA, QQQ and IWM bounced and SPY and DIA formed hammer candles, while QQQ and IWM formed hammer-like spinning tops. 

Energy stocks were mostly leaders on Thursday.

Earning’s Announcements:

Positive Reactions:  JACK, CA, MIDD, RL, VSTO,

Negative Reactions: KSS,  

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:  DIA, XLF, FAS, TSN, VIAB, ULTA, HOG, TSCO, CHK, DFS, AXP, MJN, SCI, SDRL, URI, ETFC, BAC, C, JPM, WFC, MS, NOV, SWN, FTNT,

Bull Flag Bounces include:  ATVI, AFL, BG, CL, SCHW, STI, ZION, MRO, MUR,

Horizontal Breakout Setups include: ATVI, FB, AFL, CL, EGN, HAL, NEM, AEM, EQT, SVXY, PXD, IR, PNR, DNR, SM, WLL, HES, DVN, APC, DOV, OI, RRC, LNC, NBL, BSX, ISRG, CTXS, MMM, HAS, BMY, OLN, ETP, CHTR, GLPI, WYNN, DE, JNJ, MDLZ,

Horizontal Breakout include:  AMZN, 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 48, short-term bullish.

33 of 100 NDX stocks closed higher and two were unchanged on Thursday.

28 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Friday:

Moving Above 30 DMA = 3

CA, ULTA, VOD,

Moving Below 30 DMA = 10

ADSK, DISCA, DISH, MAR, NVDA, NXPI, SBAC, SIRI, TRIP, VIAB

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up