SPY, QQQ Inches Lower on Light Volume...MU, NFLX, WDC, SWKS, AAPL, AVGO Rise...

Two of nine sectors moved higher on Monday…XLB, XLP and XLF were the strongest sectors while XLU was the weakest sector.  Oil futures formed a hammer candle while moving lower .37 to close at 48.11.

Breadth weakened as decliners led 1,541 to 1,499 on the NYSE and advancers led 1,378 to 1,213 on the NASDAQ.

Monday – weakened, advancers led on NASDAQ

Friday – strengthened, advancers led

Thursday - weakened, decliners led

Wednesday – strengthened, mixed

Tuesday – weakened, decliners led

SPY down .28 at 205.21 on 58.6 million shares, 28% below average volume

VIX up .62 at 15.82

TLT up .29 at 130.44…on 6.9 million shares, 3% above average volume

Technical Commentary:

DIA +0.01%, IWM -0.12%, QQQ -0.13%, SPY -0.14%,

SPY and QQQ moved slightly lower on below average volume following Friday’s MACD bullish divergence bounce.  Modest pullbacks on light volume are generally bullish.

XLF, financial sector closed two cents lower as GS, C, ICE, SPG, MS, CME and AIV moved higher.

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

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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SStrong Stocks: Setups and Moves You Can Use

Bull Flag Setups include:  ATVI, EA, CA, BSX, FB, LUK, FISV, JEC, MNST, NOC, LMT, TSN, GLPI, NEM, A, ALB, CL, CLR, HLF, PPC, STWD, SYY, WM, YELP, AMZN, EGN, GD, JNJ, AEM, CNP, OKE, VMW,

Bull Flag Bounces include:  DLR, NWL, CMG, RSPP, WRK, CLB, CRZO, VTR,

Horizontal Breakout Setups include: SVXY, XLB, ETFC, NTES, FMC, WWAV, XEC, XYL, DD,  AAPL, ADI, AKAM, BMRN, MAT, TMUS, XLE, ZION, STI, WMB, MRK, SWN, FTNT, AFL, ADBE, AGN, CTXS, REGN, MRO, JPM, NXPI, BAC, C, MS, CMCSA,

Horizontal Breakout include: NFLX, MXIM, SWKS, WDC, AVGO, MU, LRCX, QCOM, TXN, WFM,

Bullish Divergence Bounce include: FCX, SWN, SPY, IWM, QQQ, FAS, XLB, AVGO, AXP,

Bullish Divergence Setups include: DIA, XLP, XLV, XLI, XLK, PCAR, ORCL, UTX, EW, FLIR, NUE, STLD, SCHN, XLF, ADP

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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 down at 25, defensive, if short-term support is broken then bearish.

39 of 100 NDX stocks closed higher and one was unchanged on Monday.

38 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 4

AVGO, NFLX, REGN, WDC

Moving Below 30 DMA = 7                                                                        

BMRN, CHTR, ESRX, EXPE, HSIC, SIRI, ULTA

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Neutral