New Highs IWM, SPY, DIA, XLF, XLY...Steel Stocks Pause...COST Gaps Up...RCL, NCLH Float Higher...

Sector Trend Strength:

Up Trend: XLF, XLI, XLB, XLY, XLE

Sideways: XLK, XLV, XLRE

Down Trend: XLP, XLU

XLK breaks above the horizontal resistance of its trading channel to a new high.

XLRE breaks out with a close above a bottoming pattern.

Breadth weakened as advancers led 1,881 to 1,155 on the NYSE and led 1,878 to 910 on the NASDAQ.

Thursday – weakened, advancers led, +7

Wednesday – strengthened, advancers led, +9

Tuesday – weakened slightly, advancers led, +8

Monday – strengthened, advancers led, +8

Friday – strengthened, advancers led, +7

Oil futures were up 1.12 to close at 50.96, forming a tweezer bottom bullish candle pattern in a bull flag price pattern.

SPY up 0.55 at 225.15 on 99.7 million shares, 5% above average volume

VIX up .42 at 12.64

TLT down 1.42 at 118.98…on 12.0 million shares, 6% above average volume

Technical Commentary:

IWM +1.57%, DIA +0.41%, SPY +0.24%, QQQ +0.18%,

Financial was the leading sector on Thursday led by gains in GS, MS, LNC, PNC, STT, HBAN, ZION, CMA, C, BAC and AIG.

IWM, DIA, SPY, XLY and XLF each made a new all-time closing high on Thursday.

XLE breaks out of its pennant pattern to a new high…

MUR is a bull flag pattern

NVDA and CCL are a horizontal resistance breakout setup

Steel stocks X, AKS, MT, CLF, VALE, STLD, NUE, SCHN and MT take a breather on Thursday.  Start of a bull flag price pattern?

SPX up 4 points at 2,246

SPX Leaders EW, UA, QRVO, TSN, MYL, NRG, ENDP, AIZ, DVA, KORS, BEN, BLK, ALB, JNPR, RCL AN, TDC, COG, SIG, SWKS, PHM, SS, FTR, SEE, URBN, ADS, PBI, DISCA, VRTX, GS, DHI, FLR, COST, JWN, AMG, LEN, MS, EQIX, YHOO, KMX, DIS, LUK, DLR, VIAB, SRCL, FOSL, EXC, RIG, LNC

QQQ is in sideways trend and continued to rise near its intermediate-term resistance and is horizontal resistance breakout.   

NDX point gainers: AAPL, FB, GOOG, COST, PCLN, BIIB, INTC and AVGO

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.

2016 Q3 EPS

EPS Positive Reactions

COST, BOBE, FIVE, BIG, THO, CTRP, DE, VEEV, GME, BURL, SINA, DLTR, WB, ADI, CPB, HRL, JEC, SIG, MRVL, ROST, INTU, BBY, NTAP, TGT, AAP, JD, NVDA, KSS, M, JWN, RL, DDS, QVCA, JCI,

EPS Negative Reactions

WDAY, AMBA, SWHC, ULTA, ADSK, URBN, PDCO, MDT, TSN, GPS, CSCO, LOW, HD, TJX,

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: DLTR, MUR, BURL, FTI, BHI, AAL, TECK, MGM, LMT

Bull Flag Bounces include: WB, FOSL, TGT, NTAP, FISV, CMCSA,

Horizontal Breakout Setups include: SKYW, SBUX, JD, AAPL, UTX, CHTR,

CCL, SCHN, NFLX, ATI, APA, MCD, JWN, HIG, LRCX, ADI, CMCSA, INCY, FCX, STX, EXPE, FB, KLAC, TXN,

Horizontal Breakouts include: COST, MU, PWR, LNG, CTXS, RCL, MMM,

New Highs include: STI, CE, CC, HES, HAL, BBY, RCL, NCLH, BA, PCAR, ALK, DAL, UAL, XLNX, MU, BBBY, JPM, BAC, C, GS, HBAN, ZION, CFG, MS, USB, CMA, KEY, RF, ICE, SCHW, TRV, FDX, UPS, CSX, ADP, PWR, LUV, AAP, PAYX, CHK, STLD, NUE, AKS, X, SQ, MAR, ETFC, SAVE, WDC, 

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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 94, bullish. 

60 of 100 NDX stocks closed higher and two were unchanged on Thursday.

65 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Friday:

Moving Above 30 DMA = 5

AVGO, CTRP, LVNTA, SYMC, YHOO

Moving Below 30 DMA = 1

ESRX

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up