Broad Market Pauses as FOMC Begins 2-day Meeting...TXN, LVS, CAT Gains on EPS...AAPL Gains in After-hours...TWTR Falls...

Five of nine sectors moved higher on Tuesday …XLI, XLB and XLE were the strongest sectors while XLU was the weakest sector.  Oil futures fell .41 to close at 42.64.

Breadth strengthened as advancers led 1,820 to 1,146 on the NYSE and led 1,574 to 1,011 on the NASDAQ.

Tuesday – strengthened, advancers led, +5

Monday – weakened, decliners led, +1

Friday – strengthened, advancers led, +9

Thursday – weakened, decliners led, +2

Wednesday – strengthened, advancers led, +6

SPY up .10 at 216.75 on 69.6 million shares, 32% below average volume

VIX up .19 at 13.06

TLT up .22 at 138.92…on 5.2 million shares, 43% below average volume

Technical Commentary:

IWM +0.48%, QQQ +0.11%, SPY +0.05%, DIA -0.12%,

QQQ, IWM, XLK new high

XLI, XLB bull flag bounce

XLP, near all-time high bull flag setup 

XLY, XLU near all-time high horizontal break out setup

XLF, XLV bull flag setup

The FOMC began its two-day meeting on Tuesday which will culminate with the Fed announcement on Wednesday at 2 pm ET.  No change in interest rates is the expectation.

The SPX and NDX were led by LLTC +28.93% and TXN +7.85%.  LLTC agreed to be acquired by ADI for $60 a share and TXN gained on a positive earnings reaction.

Other SPX gainers included WYNN, AVY, MCHP, MU, CAT, MAS, VLO, MPC, WAT, PCAR, NFLX, BAX, CHK, TSO, ADI, DVN, FIS, GT, CMI, STX, WDC, UTX, HAR, JWN, OI, CSRA, FLS and XLNX to complete the top 30 gainers.

Consider moving up stops on short term bullish trades that could pull back.  All according to your profit protection rules.

Remember breakouts typically test about 70% of the time.

A big week in earnings this week with heavy weights AAPL, CAT, DD, MCD, MMM, and VZ reporting on Tuesday.

Earnings Reactions

ATI +2.85, +18.84%

AKS +0.76, +14.02%

JBLU +1.39, +8.04%

TXN +4.86, +7.35%

CNX +1.18, +6.87%

CR +3.85, +6.64%

LVS +2.84, +5.92%

SIRI, +0.20, +4.82%

CAT +3.14, +4.00%

ESRX +1.11, +1.43%

DD +0.40, +0.58%

GILD -7.89, -8.91%

UA -2.23, -5.12%

MCD -5.83, -4.58%

CHKP -3.13, -3.76%

VZ -1.11, -2.00%

MMM -1.97, -1.10%

After-hours

AAPL +5.27, +5.45%

TWTR -1.77, -9.59%

CTXS -1.53, -1.71%

Earning’s Announcements:

Positive Reactions: ATI, AKS, JBLU, TXN, CNX, CR, CAT, DD, ESRX, LVS, SIRI, AAPL

Negative Reactions: GILD, UA, MCD, MMM, VZ, CHKP, TWTR

Technical analysis based trades should be closed before earnings. After-hours

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:  HCN, LMT, CNP, CMG, COST, LMT, OKE, NKE, AIV, MDLZ, EA, KHC, INTU, NFX, ATVI, MAT, DVN, CINF, CVX, PCLN, CCL,

JNJ, DHI, UNH, SE, CCI, NI, UA, ALB, PNW, BMRN,

Bull Flag Bounces include: AA, XLB, SCHN, ADI, NUE, STLD, AMAT, AMBA, JD, ESRX, BCR, CF, NCLH, PAYX, FISV, CSX, FB, LRCX, NTES, BURL,

Horizontal Breakout Setups include: XLB, SCHN, STLD, AMAT, JD, PAYX, FISV, CSX, FB, LRCX, BURL, JBLU, SWN, VIAB, AES, MNST, AAL, MSFT, VRSK, TRIP, VTR, ADSK, UDR, IRM, RCL, ORLY, TSLA,

Horizontal Breakout include: ADI, AMBA, X, NTES, SBUX, DLTR, EW, 

New Highs include: TXN, X, SBUX, MSFT, DLTR, EBAY, NVDA, URI, GGP, GPS, KSS, ROST, CSCO, EXPE, KMX, QCOM, STX, REGN, CERN, MLM, TJX, CBG, LB, SPG, NTAP, CBL, CPA, MAC, TGT, CNP, CTXS, TSN, WHR, BXP, ULTA, BIIB, 

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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 in the upper zone at 96, bullish.

64 of 100 NDX stocks closed higher on Tuesday.

90 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 3

BIDU, CTSH, NCLH,

Moving Below 30 DMA = 4

CHKP, DISH, GILD, KHC,

6-month Intermediate Term Market Trend: Up
3-day Short Term Market Trend: Neutral