QQQ Bounces Up from Support as IWM, DIA and SPY Pause...NVDA Resumes Up Trend...AAPL Bounces...

Three of ten sectors moved higher on Wednesday …XLK, XLY and XLP were the strongest sectors while XLF was the weakest sector.  Oil futures down .42 to close at 45.33.

Breadth strengthened as advancers led 1,591 to 1,454 on the NYSE and led 1,451 to 1,322 on the NASDAQ.

Wednesday – weakened, advancers led, +3

Tuesday – strengthened, advancers led, +8

Monday – weakened, advancers led, +6

Friday – strengthened, advancers led, +5

Thursday – weakened, advancers led on NASDAQ, +6

SPY down .41 at 217.87 on 65.6 million shares, 31% below average volume

VIX up 0.35 at 13.72

TLT up 1.10 at 123.01…on 9.1 million shares, 2% below average volume

Technical Commentary:

QQQ +0.59%, IWM -0.01%, SPY -0.19%, DIA -0.19%,

DIA and IWM pause after new all-time highs on Tuesday

SPY paused at resistance after a new high close on Tuesday

SPY is a horizontal resistance breakout setup with the potential to change from a sideways trend to an uptrend

SPX down 3 points at 2,176

SPX Leaders: FOSL, TGT, NVDA, AA, TJX, FTR, ADSK, CCI, GPN, AAPL, NLSN, RHT, IFF, CTSH, V, GPS, YHOO, AMT, ALXN, ALB, DSS, DLTR, A

VIX did confirm the SPX gain

QQQ in sideways trend bouncing up from support

NDX point gainers: AAPL, MSFT, NVDA, GOOG, AMZN, KHC, GOOGL, SBUX and CMCSA

Steel stocks pull back after a large 9-day rally.

Airline stocks also pull back while HA and SAVE move higher.

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.

2016 Q3 EPS, Oct - Nov

EPS Positive Reactions

TGT, AAP, JD, NVDA, KSS, M, JWN, RL, DDS, QVCA, JCI, MAR, SYY, FDC, RACE, CTSH, PCLN, MGM, LVS, UBNT, SLCA, SBUX, MCHP, FOSL, MHK, CAR, RIG, DDD, YELP, SHOP, ABC, SQ, HSIC, ZTS, DVN, NBL, ANTM, ADP, EA, VRSK, ADM, HRS, MOS, CHKP, COH, 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, DRI, CSX, COST, RHT, FDX, ADBE

EPS Negative Reactions

LOW, HD, TJX, KORS, NTES, TRIP, CVS, ENDP, NWSA, ALB, IFF, EXPD MNST, ATVI, FSLR, WYNN, CS, APA, FB, UVE, AIG, CHTR, PAYC, DATA, CAVM, BABA, X, GILD, HLF, ILMN, NFX, 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

SWKS, LBTYA, CI, QCOM, FOXA, 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

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: PCLN, AAL, AKAM, BBBY, CHKP, CHTR, CSX, GILD, NCLH, NFLX, PAYX, REGN, TMUS, VRTS, WFM, SQ, AAP, MLM, HAS, DAL, ALK, LUV, SAVE, ALK, STI, ZION, JPM, WFC, USB, RCL, AKS, SCHN,

Bull Flag Bounces include: NVDA, HSY,

Horizontal Breakout Setups include: STX, CMCSA, COST, CSCO, CTSH, CTXS, DISCA, DLTR, ESRX, EXPE, FOXA, JD, LRCX, MU, MXIM, NTAP, PCAR, TXN, ULTA, WDC, MCHP, HAL, BHI, CHK, NBL, JD, HES, APA, MUR,

Horizontal Breakouts include: NVDA, SBUX, FISV, SLB, RRC, DVN,

New Highs include: NVDA, ADP, ADSK, CE, CC, MAR, STLD, X, NUE, FTI, PWR, NFX, UAL, SKYW, BAC, C, RF, GS, MS, ETFC, SCHW, CMA, CCL, ADI,

Horizontal Break of Support Setups include: MDLZ, GOOGL,

Break of Support: FB, AMZN, TSLA, NEM, NTES, TRIP, ATVI, CERN,

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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 88.9, bullish. 

57 of 100 NDX stocks closed higher and one was unchanged on Wednesday.

60 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 1

ROST,

Moving Below 30 DMA = 0

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up