AA Misses on Revenues Leads Broad Market to Downside...SPY Breaks Short-term Support Falls to Next Level...

All ten sectors moved lower on Tuesday …XLP, XLRE and XLF were the strongest sectors while XLV was the weakest sector.  Oil futures slipped -0.30 to close at 50.86.

Breadth weakened as decliners led 2,649 to 401 on the NYSE and led 2,373 to 461 on the NASDAQ.

Tuesday – weakened, decliners led, +0

Monday – strengthened, advancers led, +9

Friday – weakened, decliners led, +0

Thursday – weakened, decliners led, +7

Wednesday – strengthened, advancers led, +7

SPY down 2.73 at 213.43 on 129.7 million shares, 34% above average volume

VIX up 1.12 at 15.36

TLT down .30 at 132.83…on 9.3 million shares, 12% above average volume

Technical Commentary:

DIA -1.05%, SPY -1.26%, QQQ -1.43%, IWM -1.83%,

AA -3.60, -11.42% released earnings before that open that disappointed on profit, revenues and lowered guidance which led to a lower open.  SPY -2.73, -1.26% opened lower and broke its 214 short-term support area before falling to a 212.58 support where buyers stepped in and SPY rallied more than a dollar before closing at 213.43.

QQQ sold off from its new high on Monday, back to short-term support at 117.52.

IWM fell back into its bull flag channel.

Analyst Comments:

CHTR, FB, NFLX, PYPL, STX,

EPS Positive Reactions

COST, RHT, FDX, ADBE

EPS Negative Reactions

AA, FAST, ILMN,  MU, PAYX, CCL

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: NVDA, JD, LRCX, LVS, WB, JPM, C, SCHW, ZION, BAC, ETFC, STT, MA, STI, GS, AMZN, TRIP, EA, GT, CSX, NXPI, INTC, ADSK, APA, WDC, NFLX, PCLN, QCOM, PRAA, AKAM, HA, RCL, PCAR, SYMC, NUE, X, STLD, IWM, SINA, UAL, GPRO, ISRG, ADBE, CAVM, MU, SOXL,

Bull Flag Bounces include: AKS,

Horizontal Breakout Setups include: MS, NCLH, EXPE, BAC, AAL, FB, BABA, FL, SCHN, WMB, SE, LMCA, URBN, FOSL, RL, ULTA, CHK,

Horizontal Breakout include: AAPL,

New Highs include: AAPL, NTES, SWKS, LITE, 

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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 57, defensive. 

3 of 100 NDX stocks LMCA, COST, AAPL closed higher on Tuesday.

36 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 16

ADI, ATVI, CHKP, CMCSA, CSCO, ENDP, FAST, HSIC, ILMN, LVNTA, MSFT, PCAR, PYPL, STX, TXN, YHOO

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Down