Broad Markets Pullback on Light Volume Wednesday...MU Up After-hours While RHT is Down on EPS...

Sector Trend Strength:

Up Trend: XLF, XLI, XLB, XLY, XLE, XLK, XLP, XLRE

Sideways: XLV, XLU

Down Trend:

Breadth weakened as decliners led 1,599 to 1,416 on the NYSE and led 1,714 to 1,048 on the NASDAQ.

Wednesday – weakened, decliners led, +2

Tuesday – strengthened, advancers led, +7

Monday – strengthened, advancers led, +7

Friday – weakened, advancers led on NYSE, +5

Thursday – strengthened, advancers led, +8

Oil futures were down 1.00 to close at 52.51 on Wednesday.  

SPY down .63 at 225.77 on 67.9 million shares, 29% below average volume,

VIX down .18 at 11.27

TLT up .52 at 118.33…on 4.6 million shares, 61% below average volume

Technical Commentary:

QQQ -0.07%, DIA -0.13%, SPY -0.28%, IWM -0.65%,

Volume dropped dramatically on Wednesday heading into the three-day Christmas weekend.  Low volume trading on SPY and TLT are just two examples. 

Broad markets pulled back modestly on Wednsday.

SPX down 5 points at 2,265

SPX Leaders SWN, OI, MNST, CNC, HAL, RRC, COG, DLPH, EFX, MOS, EQT, ALXN, MI, CHK, SHW, MHK, VIAB WHR, GIS, UA, AGN, TAP, MDLZ, NWL, URI, CCL, NFLX, LKQ, LEN, WYNN, CMG, SLB, MAS, TSO, ADS, NKE

QQQ closed near Tuesday's high above resistance for the seventh straight day.

  

NDX point gainers: MNST, MDLZ, KHC, AAPL, NFLX, NTES, ALXN and PYPL

Earnings Reports

NKE +0.51, +0.98% on a positive earnings reaction.

MU +2.04, +9.91% on a positive earnings reaction, after hours.

FINL -2.01, -8.74% on a negative earnings reaction.

AGN -6.20, -5.00% on a negative earnings reaction.

RHT -8.09, -10.13% on a negative earnings reaction on missed revenues, after hours.

BBBY -1.17, -2.56% on a negative earnings reaction on missed EPS, after hours.

2016 Q4 EPS

EPS Positive Reactions

NKE, KMX, CCL, JBL

EPS Negative Reactions

FINL, AGN, GIS, ADBE

Follow your rules and look for potential re-entry if you were stopped out of any profitable trades.

Continue to move up stops on short term bullish trades that could pull back.  All according to your profit protection rules.  If you moved stops you may have been stopped out today.

Remember breakouts typically test about 70% of the time.

Technical analysis based trades should be closed before earnings.

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: SPY, IWM, FDX, UPS, ADBE, ADSK, AMAT, BBBY, CHTR, DISCA, EA, EBAY, FAST, GILD, GOOG, MAR, PCAR, ROST, SBUX, STX, WBA, BAC, ICE, BBY, CC, CE, PWR, APA, BHI, FTI, LNG, SOXL,

One Day Pullback: PAYX, SQ, MCD, TSLA, TSCO, USB, ZION, ALK,

Bull Flag Bounces include: ADI, CTXS, HIG, MGM,

At Support Setups include: SCHN, ATVI

Support Bounce: DISH, NUE, ATI, CSX, PCLN

Horizontal Breakout Setups include: MU, HIG, MGM, HAL,

QQQ, DIA, ADI, CTXS, MSFT, INTC, NCLH, XLNX, WDC, AAL, AAPL, FB, CHKP, LRCX, NFLX, NTAP, TMUS, WFM, FAS, JPM, C, CFG, GS, CMA, ETFC, HBAN, KEY, MS, RF, SCHW, STI, TRV, AKS, X, STLD, RCL, CCL, GD, AAP, BURL, ALK, DAL, LUV, SAVE, SKYW, UAL, BA, UTX, MMM, CHK, HES,

Horizontal Breakouts include:

New Highs include: NVDA, ADP, AVGO, CMCSA, COST, PAYX, FISV,

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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 in the upper zone at 92 bullish. 

43 of 100 NDX stocks closed higher and two were unchanged on Wednesday.

65 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 3

FB, MNST, QCOM

Moving Below 30 DMA = 4

ADSK, BBBY, CELG, DLTR

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral