Real Estate Elevated to Sector Status...XLF Declares Special Dividend of XLRE Shares...

Five of ten sectors moved higher on Monday …XLU, XLRE, XLI and XLF were the strongest sectors while XLV was the weakest sector.  Oil futures rose .02 to close at 43.77.

Breadth strengthened as advancers led 2,054 to 971 on the NYSE and led 1,663 to 1,162 on the NASDAQ.

Monday – strengthened, advancers led, +5

Friday – weakened, decliners led, +2

Thursday – strengthened, advancers led, +9

Wednesday – strengthened, decliners led, +5

Tuesday – weakened, decliners led, +0

SPY up .04 at 213.41 on 80.2 million shares, 3% below average volume

VIX up .16 at 15.53

TLT down .44 at 134.31…on 7.1 million shares, .8% above average volume

Technical Commentary:

IWM +0.64%, SPY +0.02%, DIA +0.01%, QQQ -0.30%,

SPY closed slightly higher after a wide trading range of 1.85 and held above its short-term support 211.24 held for the sixth straight day.  SPY and DIA are forming a potential channel breakout. IWM formed a short-term horizontal resistance setup.

Leading NDX stocks on Monday included NTES, LMCA, NTAP, SBAC, INCY, MAT, NVDA, BMRN, AKAM, FAST, ISRG, ORLY, QVCA, ROST and AMAT.

FOMC meeting starts on Tuesday with Fed announcement on Wednesday.

XLF is shedding its real estate stocks in the form of a special dividend today 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: PYPL, MU, UAL, CHK, STX, JD, WMB, SE, EBAY, APA, CHTR,  HRS, CSCO, WBA RL, MSI, URBN, ZION, BAC, JPM, GS, STT,

Bull Flag Bounces include: V, AKAM, KSS, NTAP, SCHW,

Horizontal Breakout Setups include: BABA, WDC, CSX, SYMC, CAVM, AMAT, NVDA, BURL, FL, MPC, MA, MS, GT, ADI, AVGO, CMCSA, EA, NTAP, QCOM, SWKS, TMUS, TXN, XLNX, ADSK, SINA, BIDU, YHOO, AMZN, NFLX, WRK, FB

Horizontal Breakout include: VLO,

New Highs include: NTES, LITE, ETFC, LVS, AAPL, ATVI, GT, SWKS, PCLN, INTC,

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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 down at 24, bearish.  SPY held above short-term support.

45 of 100 NDX stocks closed higher on Monday.

39 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 4

ISRG, LLTC, ROST, TXN

Moving Below 30 DMA = 5

AMGN, HSIC, KHC, LRCX, REGN

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral