Rally Continues on Strength in Energy, Materials and Financials...

Eight of nine sectors moved higher on Wednesday…XLE, XLB and XLF were the strongest sectors while XLU was the weakest sector.  Oil futures rose .64 to close at 49.74.

Breadth weakened as advancers led 2,052 to 965 on the NYSE and led 1,608 to 968 on the NASDAQ.

Wednesday – weakened, advancers led

Tuesday – strengthened, advancers led

Monday – weakened, advancers led on NASDAQ

Friday – strengthened, advancers led

Thursday - weakened, decliners led

SPY up 1.41 at 209.28 on 93.5 million shares, 10% below average volume

VIX down .47 at 13.95

TLT down .49 at 129.86…on 5.9 million shares, 7% below average volume

Technical Commentary:

DIA +0.80%, QQQ +0.72%, SPY +0.68%, IWM +0.58%,

SPY, IWM, DIA and QQQ continued to move higher on Wednesday.  SPY exceeded its May 10 high and touch its April 28 high today.

SPY, QQQ IWM and DIA are all above their 30 DMA today. 

XLF, the financial sector continued to move higher as the third strongest sector on Wednesday. 

The price bounce has occurred and it is time to be bullish.

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:  TSN, GLPI, PPC, SYY, GD, SWKS, WMB, CTXS, NTES, REGN, WM,

Bull Flag Bounces include:  LUK, JEC, ALB, CLR, JNJ, CNP, OKE,

Horizontal Breakout Setups include: DIA, XLI, XLF, FAS, XLB, PCAR, ORCL, UTX, FLIR, NUE, STLD, ADP, MAT, LUK, JEC, ALB, CLR, JNJ, CNP, ATVI, EA, BSX, YELP, AMZN, VMW, CMG, VTR, FMC, WWAV, XEC, ADI, RSPP, WRK, CRZO, TMUS, FTNT, AGN, BAC, C, MS, CMCSA, MXIM, AVGO, MU, TXN, AXP

Horizontal Breakout include: XLV, XLE, OKE, CA, A, AAPL, EGN, ZION, STI, SWN, JPM, MRO, BAC, C

Bullish Divergence Bounce include: SCHN, FCX,

______________________

                                                                                                                                    

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 pointed up at 44, bullish.

72 of 100 NDX stocks closed higher on Wednesday.

63 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 9

AAPL, ALXN, CELG, DISH, FAST, ILMN, MSFT, SYMC, ULTA

Moving Below 30 DMA = 2                                                                        

CTRP, YHOO

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up