Markets Pause on Quad-witching Expiration Friday...

Sector Trend Strength:

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

Sideways: XLV, XLU

Down Trend: 

Breadth weakened as advancers led 1,704 to 1,314 on the NYSE and decliners led 1,506 to 1,275 on the NASDAQ.

Friday – weakened, advancers led on NYSE, +5

Thursday – strengthened, advancers led, +8

Wednesday – weakened, decliners led, +0

Tuesday – strengthened, advancers led, +8

Monday – weakened, decliners led, +5

Oil futures were up 2.03 to close at 53.10 on Friday.  

SPY down .44 at 225.04 after a 1.32893 dividend Friday, on 156.4 million shares, 27% above average volume,

VIX down .59 at 12.20

TLT down .27 at 117.14…on 14.9 million shares, 23% above average volume

Technical Commentary:

DIA -0.02%, IWM -0.18%, SPY -0.20%, QQQ -0.66%,

Broad markets paused on Friday with QQQ and DIA closing higher for the week. SPY was down just 14 cents for the week after paying a dividend on Friday while IWM closed lower.

SPX down 4 points at 2,258

SPX Leaders FSLR, WMB, ENDP, ROST, MNK, OXY, HCN, ALXN, VTR, LLY, O, HCP, CMG, MPC, ER, ESS, TSS, NEM, PEG, MUR, AIV, PLD, EIX, SE, CHK, ULTA, ADP, CI, UNH, MAR, FTR

QQQ continued to test Tuesday’s horizontal resistance breakout and closed above resistance for the fourth straight day.   

NDX point gainers: KHC, NVDA, ROST, ADP, ALXN, AAPL, TSLA, MAR and ESRX

JBL +2.57, +11.96% on a positive earnings reaction.

ADBE -1.55, -1.47% closes lower after a positive earnings report.

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, LNG, X, STLD, MGM, CC, CE, TRV, CMA, ETFC, HBAN, HIG, ICE, MS, RF, ZION, PWR, BA, GD, APA, CHK, HAL, BBY, FTI, AAP, AAL, ADI, ADSK, BBBY, DISCA, EBAY, FAST, MU, PCAR, IWM, FDX, HES, ADBE, MSFT, SBUX, STX, WBA, WDC, UTX, MMM, UPS, GILD, RCL, CCL, BAC, C, GS, SCHW, USB, DAL, SAVE, BURL, AKS

One Day Pullback: XLNX, EA, CTXS, CHTR, NCLH, JPM,

Bull Flag Bounces include: GD, BHI, CHKP, TMUS

Horizontal Breakout Setups include: QQQ, DIA, INTC, EA, FB, FISV, CFG, KEY, COST, NTAP, ALK, UAL, LUV, SKYW, AMAT, AVGO, LRCX, NFLX, DISH, STI

Horizontal Breakouts include: ADP, TSLA,

New Highs include: NVDA, MAR, SQ, AAPL, PAYX, MCD,

At Support Setups include: NUE, SCHN, ATI, CSX, PCLN, 

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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. 

30 of 100 NDX stocks closed higher on Friday.

67 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 1

VOD

Moving Below 30 DMA = 7

ADBE, CELG, GILD, LVNTA, MXIM, QOCM, SYMC

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral