Support Holds and Breadth Strengthens, FOMC Begins Tuesday, Jobs Report Friday...

Six of ten sectors moved higher on Monday …XLU, XLRE and XLP were the strongest sectors while XLE was the weakest sector.  Oil futures dropped 1.90 to close at 46.76, its lowest close since Sep. 27.

Breadth strengthened as led 1,544 to 1,487 on the NYSE and decliners led 1,415 to 1,348 on the NASDAQ.

Monday – strengthened, advancers led on the NYSE, +6

Friday – strengthened, decliners led, +5

Thursday – weakened slightly, decliners led, +2

Wednesday – weakened slightly, advancers led, +4

Tuesday – weakened, decliners led, +2

SPY up .01 at 212.55 on 61.2 million shares, 28% below average volume

VIX up .87 at 17.06

TLT up .80 at 131.25…on 7.0 million shares, 10% below average volume

Technical Commentary:

IWM +0.40%, SPY +0.00%, QQQ -0.09%, DIA -0.10%%,

Oil drop pushes energy stocks lower

VIX rises for fifth straight day

IWM gains, forms MACD bullish divergence

NYSE gainers led decliners

2,120 SPX continues to hold makes higher low on Monday

FOMC meeting begins Tuesday, announcement Wednesday, expected no change

Jobs report Friday

Earning winners and losers again indicates institutional money is rotating based on earnings.  Winners included CHKP and TSO.  Losers included DO and SCTY.

SPX Leaders: DVA, L, NEM, LVLT, ESRX, DRI, UDR, NI, RCL, ROP, NRG, HST, JCI, FOSL, PSA, AIV, HPQ, IRM, QRVO, FFIV, WM, GT, M, EQR, NUE, PEG, SCG, EXC, SLG, MCK, D, ESS, FCX, AEP, MLM, ETN, EIX, AVB and LUV

Earnings Announcements

Monday – CHKP, DO, SCTY, TSO,

Tuesday – ADM, GILD, HRS, HLF, ILMN, MOS, NFX, NBL, PAYC, DATA, CAVM

Wednesday – BABA, AIG, FB, FSLR, QCOM, HSIC, SHOP, FOXA, UVE, YELP, RIG

Thursday – DDD, APA, CHTR, CS, FOSL, LVS, LBTYA, MNST, PRAA, SWKS, SBUX, SLCA, UBNT

Friday – MCHP,

EPS Positive Reactions

CHKP, TSO, RCL, HBI, SRCL, HSY, EMN, VRSN, UBS, BIDU, CRUS, EXPE, MO, CVX, FFIV, WDC, COP, DOW, AKAM, JNPR, BA, NCR, OI, FLIR, ROL, TSS, LMT, KEY, FCX, VLO, BHI, SAVE, AKS, TMUS, MCD, PYPL, MSFT, MXIM, AXP, SNA, MAT, BK, STLD, WBA, ALK, URI, HAL, MS, USB, NFLX, HOG, UNH, GS, CE, DPZ, CMA, UAL, HAS, DAL, CSX, COST, RHT, FDX, ADBE

EPS Negative Reactions

DO, SCTY, AMZN, MCK, ABC, CAH, GT, ABBV, LM, COG, CA, AMGN, AET, LITE, XOM, CLF, ORLY, NEM, POT, AAPL, EW, CMG, LUV, CMCSA, UA, P, WHR, PNRA, JBLU, GM, MMM, NLSN, WAT, SHW, MAS, PNR, MCO, EBAY, TRV, LRCX, TSCO, INTC, ISRG, ST, JNJ, IBM, AA, FAST, ILMN, MU, PAYX, CCL

EPS Neutral Reactions

GOOGL, PSX, SKYW, BX, CA, TWTR, UPS, TSLA, MO, NXPI, STT, GD, KO, ESRX, VRTX, PCAR, AAL, NUE, XLNX, CTXS, LLTC, BAC, C, JPM, PNC

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: MSFT, PYPL, MAT, CTXS, TMUS, DISH, TXN, MXIM, NVDA, ULTA, SCHN, ALK, STI, ADBE, AKS, X, QCOM, NFLX, BAC, NTES, SAVE,

Bull Flag Bounces include: SCHN, UAL

Horizontal Breakout Setups include: NEM, WDC, VRSN, HAS, RCL, ADSK, AMZN, ZION, C, AAL, BIDU, NCLH, TRIP, CAVM, CCL, DO, SOXL, MDLZ, SRCL, EXPE, MDLZ, MLM

Horizontal Breakouts include: STLD, JPM, DAL, RCL,

New Highs include: DPZ, CE, GS, CMA, MS, USB, HSTY, AKAM, EXPE

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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 32, defensive. 

53 of 100 NDX stocks closed higher and one was unchanged on Monday.

41 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 7

CSX, CTXS, INTU, KHC, LRCX, MAR, SIRI

Moving Below 30 DMA = 4

CELG, CTSH, GOOG, WFM

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Down