SPX Opens Lower Recovers from Intra-day Low...Oil Falls...Bonds Rise...

Three of nine sectors moved higher on Thursday…XLU, XLP and XLK were the strongest sectors while XLE was the weakest sector for the second straight day.  Oil futures fell 1.07 to close at 50.46.

Breadth weakened as decliners led 1,875 to 1,145 on the NYSE and led 1,777 to 809 on the NASDAQ.

Thursday – weakened, decliners led, +3

Wednesday – strengthened, advancers led, +8

Tuesday – weakened, advancers led on the NYES, +5

Monday – strengthened, advancers led, +8

Friday – weakened, advancers led on NYSE, +3

Thursday – weakened slightly, advancers led, +7

SPY down.29 at 212.08 on 73.7 million shares, 6% below average volume

VIX up .56 at 14.64

TLT up .86 at 134.13…on 6.8 million shares, average volume

Technical Commentary:

DIA -0.10%, SPY -0.14%, QQQ -0.16%, IWM -0.64%,

After breaking out of resistance on Monday, SPY opened lower pulled back to its breakout area before rallying to close just 29 cents below Wednesday’s close.  Momentum did slow down on Thursday.  

Be on alert for a potential pullback following Monday’s breakout.

Oil pulled back and energy was the weakest sector, but SWN, RRC, EQT, COG, OKE and SE still rose today.

Steel stocks paused after a big move on Wednesday, bull flags in STLD, X, NUE and SCHN.

Earning’s Announcements:

Positive Reactions:  SJM,

Negative Reactions:

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:  RES, XEC, WWAV, IWM, FAS, HP, SPN, RSPP, NUE, RDC, CLR, CRZO, ADBE, NTES, MSFT, QCOM, NXPI, WFC, XLF, AMAT, CSCO, BIDU, NFLX, XLNX, AXP, BAC, C, WMB, TSCO, SWN, CHK, XLB, STLD, SCHN, AKS, NUE, EPE, SDRL, WYNN, HTZ, PCAR, NBR, STI, JPM, EA,

Bull Flag Bounces include: NVDA, BSX, MAT, ADP,

Horizontal Breakout Setups include: SWKS, CRC, CIE, AKAM, ADSK, AMD, AAPL, SCTY, ESV, MOS, FTNT, KHC, COST,

Horizontal Breakout include: WM, UTX, LNG, YELP, GLPI, CBL, EQIX, GLNG

New Highs include: PTEN, CNP, ULTA, FISV, TXN, LULU, AMBA, YELP,

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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 at 94, bullish.

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

82 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Friday:

Moving Above 30 DMA = 2

AAL, ORLY,

Moving Below 30 DMA = 6                                                                        

BBBY, DISCA, GILD, MAR, REGN, VOD,

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up