SPY, IWM and DIA Make New All-time Closing High as Financial Sector Leads...

Sector Trend Strength:

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

Sideways: XLK, XLV, XLRE

Down Trend: XLP, XLU

Breadth weakened slightly as advancers led 2,161 to 868 on the NYSE and led 1,901 to 884 on the NASDAQ.

Tuesday – weakened slightly, advancers led, +8

Monday – strengthened, advancers led, +8

Friday – strengthened, advancers led, +7

Thursday – weakened slightly, decliners led, +5

Wednesday – weakened, decliners led, +4

Oil futures were down .25 to close at 50.70.

SPY up .70 at 221.70 on 57.6 million shares, 37% below average volume

VIX down .35 at 11.79

TLT down .09 at 119.38…on 11.3 million shares, 5% above average volume

Technical Commentary:

IWM +1.08%, SPY +0.32%, QQQ +0.23%, DIA +0.14%,

Financials regained upward momentum on Tuesday and led 8 of 10 sector ETFs higher.

IWM, DIA and SPY made new all-time closing highs on Tuesday.

SPY is a horizontal resistance breakout setup

IWM made a horizontal resistance breakout entry on Tuesday

XLY continued its flag bounce

XLB continued its flag bounce

XLE and MUR are forming a pennant pattern

NVDA and CCL continued their flag bounce and are nearing a horizontal resistance breakout setup

Steel stocks MT, ATI, X, STLD, VALE and NUE continued higher in their uptrend.

SPX up 7 points at 2,212

SPX Leaders: ADSK, NFLX, BWA, KMX, UAL, WYNN, CBG, WU, VRTX, NFX, ZION, DAL, DLPH, FTR, ZBH, QRVO, WAT, WDC, AN, OI, AIZ, NDAQ, HRB, CMA, MU, AMG, STI, LEN, WFC, HM, RHI, R, EXR, COP, ALK, CHTR, DHI, AME, RIG, PDCO

QQQ is in sideways trend and bounced up from Friday’s spinning top near its intermediate-term support.   

NDX point gainers: AAPL, AMZN, INTC, QCOM, CHTR, ADSK, NVDA, TMUS and TXN

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

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: MU, AAL, LMT, NTAP, DLTR, FOSL, MUR, ADP, TGT, BURL, FISV, PAYX, AAL, SKYW, PWR, SBUX, WB, JD,

AAPL, MMM, UTX, CHTR, CMCSA,

Bull Flag Bounces include: KLAC, DAL, AAP, UAL, TXN, CHTR,

Horizontal Breakout Setups include: CCL, NCLH, SCHN, LUV, ICE, ESRX, BBBY, ATI, INCY, COST, FCX, BBY, TECK, APA, LNG, STX, CTXS, RCL, MCD, JWN, LRCX, ADI, EXPE, FB,

Horizontal Breakouts include: C, BAC, STI, CE, MGM, XLNX, HIG, NFLX,

New Highs include: STLD, NUE, X, CHK, SQ, MAR, JPM, BAC, GS, HBAN, ZION, CFG, MS, ETFC, USB, CMA, RF, SCHW, TRV, BHI, HES, CE, CC, HAL, ALK, SAVE, WDC, BA, PCAR, AKS, FTI, FDX, UPS, CSX,

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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 89, bullish. 

52 of 100 NDX stocks closed higher on Tuesday.

53 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 7

ADSK, AMGN, INTC, NFLX, QCOM, SIRI, TXN,

Moving Below 30 DMA = 2

CA, SHPG,

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up