SPY, DIA, QQQ, IWM Pull Back Start Potential Bull Flag... Oil Rallies Day Four...

Just one of nine sectors moved higher on Tuesday …XLE, XLF and XLP were the strongest sectors while XLU was again the weakest sector.  Oil futures rose .70 to close at 46.41.

Breadth weakened as decliners led 2,042 to 903 on the NYSE and led 1,787 to 810 on the NASDAQ.

Tuesday – weakened, decliners led, +1

Monday – strengthened, advancers led, +7

Friday – weakened, decliners led, +3

Thursday – strengthened, advancers led, +8

Wednesday – weakened, decliners led, +4

SPY down 1.13 at 217.96 on 53.2 million shares, 18% below average volume

VIX up .83 at 12.64

TLT down .37 at 138.39…on 6.1 million shares, 15% below average volume

Technical Commentary:

DIA -0.41%, SPY -0.52%, QQQ -0.55%, IWM -0.81%,

SPY, DIA, QQQ and IWM from new highs on Monday to form day one of a potential bull flag pattern. 

Take a look at your new highs stock list to see if they too started to pull back to form a potential bull flag price pattern.

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.

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:  PCLN, BIIB, TMUS, ETFC, XLV, CERN, CBG, XLF, IBM, AVGO, CHTR, CTRP, ULTA, SPY, QQQ, MSFT, TSN, IWM, XLNX, ROST, COST, AMAT, SBAC, TSN, BURL, ORLY, KHC, ALXN, CELG, EA, EA, FAS,

Bull Flag Bounces include: BAC, WFC,

Horizontal Breakout Setups include: PCAR, BAC, CAT, BX, HLT, BXP, HPE, MAR, DISCA, NFLX, MRK, URI, MAT, LB, ZION, JPM, C, GRMN, AAL, STX, INTC, KMI, MPC, WRK, CCL,

Horizontal Breakout include: C, CHK, MS, 

New Highs include: NTES, NTAP, SYMC, GS, AMBA, MU, JD, ADSK, KMX, NVDA, STT, SPY, CBL, WMB, VLO, GPRO, STI, AAPL

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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 94, bullish.

14 of 100 NDX stocks closed higher on Tuesday.

71 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 9

ATVI, BMRN, CSX, DLTR, INTU, MNST, PAYX, SIRI, TSLA

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral