FOMC Meeting Begins...Announcement on Tuesday...Markets Drift...

Five of ten sectors moved higher on Tuesday …XLV, XLP and XLI were the strongest sectors while XLE was the weakest sector.  Oil futures rose .66 to close at 44.43.

Breadth weakened as decliners led 1,674 to 1,337 on the NYSE and led 1,475 to 1,323 on the NASDAQ.

Tuesday – weakened, decliners led, +5

Monday – strengthened, advancers led, +5

Friday – weakened, decliners led, +2

Thursday – strengthened, advancers led, +9

Wednesday – strengthened, decliners led, +5

SPY up .01 at 213.42 on 69.1 million shares, 16% below average volume

VIX up .39 at 15.92

TLT up .47 at 134.78…on 6.0 million shares, 14% below average volume

Technical Commentary:

QQQ +0.19%, DIA +0.04%, SPY +0.00%, IWM -0.42%,

SPY/SPX continued its 8-day higher volatility channel on Tuesday as the broad market ETFs continued to range bound in front of Wednesday’s FOMC announcement.  Interest rates are expected to remain unchanged.

Leading NDX stocks on Monday included GILD, LMCA, NCLH, MAR, INCY, ILMN, EXPE, ADP, BIIB, AMGN, ENDP, PCAR, PAYX and CERN.

ADBE +5.18, +5.15% soars after-hours with earnings above estimates generated by a 41% rise in subscription revenue.

FOMC meeting started today with Fed announcement on Wednesday at 2pm ET.

XLF is shedding its real estate stocks in the form of a special dividend yesterday that is being paid in shares of XLRE stock, .14 share for each one share of XLF.  Real estate stocks have been raised to sector status in GICS.

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: AAPL, CHTR, EBAY, INTC, JD, MU, NFLX, PYPL, STX, SWKS, SYMC, AKAM, BABA, GT, LVS, VLO, UAL, CHK, WMB, SE, APA, HRS, WBA MSI, URBN, ZION, BAC, GS, STT, RL,

Bull Flag Bounces include: JPM

Horizontal Breakout Setups include: QQQ, IWM, RCL, ADI, ADSK, AMAT, ATVI, CMCSA, CSX, EA, FB, GILD, ISRG, NTAP, NVDA, PCLN, QCOM, ROST, TXN, WDC, AMZN, BIDU, NFLX, YHOO, MA, V, KSS, CAVM, BURL, FL, MPC, MS, SINA, WRK, SCHW, DVA, FOSL,

Horizontal Breakout include: REGN,

New Highs include: LMCA, ATVI, NTES, LITE, ETFC, ATVI, GT, SWKS, PCLN,

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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 pointed up at 28, bullish.  SPY held above short-term support.

45 of 100 NDX stocks closed higher on Tuesday.

38 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 3

AMGN, CMCSA, REGN,

Moving Below 30 DMA = 4

EBAY, LLTC, TXN, XLNX, 

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral