Support Holds...Stock Indexes Bounce...VIX Falls Confirms Bounce...

Sector Trend Strength:

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

Sideways: XLV, XLU

Down Trend:

Breadth strengthened as advancers led 1,884 to 1,154 on the NYSE and led 1,583 to 1,184 on the NASDAQ.

Monday – strengthened, advancers led, +7

Friday – weakened, advancers led on NYSE, +5

Thursday – strengthened, advancers led, +8

Wednesday – weakened, decliners led, +0

Tuesday – strengthened, advancers led, +8

Oil futures were up .04 to close at 53.14 on Monday.   

SPY up .49 at 225.53 on 86.2 million shares, 12% below average volume,

VIX down .45 at 11.75

TLT up 1.26 at 118.40…on 10.5 million shares, 11% below average volume

Technical Commentary:

IWM +0.65%, QQQ +0.41%, SPY +0.22%, DIA +0.21%,

Broad markets bounced on Monday.

SPX up 4 points at 2,262

SPX Leaders NRG, HCP, O, LM, LRCX, CA, DLR, UTX, MSFT, CHRW, CSRA, PRGO, AAL, NAVI, SWN, COST, HCN, KSS, CCI, XL, CHK, ALK, WDC, WU, ADBE, FITB, INTC, ZION, CMI, KLAC, MAS, BXP, RSG, WM, HES, QRVO, BMY, ORLY

QQQ continued stay above resistance for the fifth straight day.

  

NDX point gainers: MSFT, AMZN, AAPL, INTC, COST, GOOG, ADBE, CSCO, QCOM, AVGO, CMCSA, NVDA, TMUS, TXN and NFLX

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, XLNX, EA, CTXS, CHTR, JPM, BAC, C, GS, LNG, X, STLD, MGM, CC, CE, CMA, ETFC, HBAN, HIG, ICE, MS, RF, ZION, PWR, GD, APA, HAL, BBY, FTI, AAL, ADI, ADSK, BBBY, DISCA, EBAY, FAST, MU, PCAR, SBUX, STX, WBA, GILD, RCL, CCL, NCLH, SCHW, USB, DAL, SAVE, BURL, AKS, BHI, EA,

One Day Pullback: MAR,

Bull Flag Bounces include: TRV, BA, CHK, AAP, HES, MSFT, WDC, UTX, MMM,

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

Horizontal Breakouts include: COST,

New Highs include: NVDA, SQ, AAPL, PAYX, MCD, ADP, TSLA,

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 91.94 bullish. 

54 of 100 NDX stocks closed higher and one was unchanged on Monday.

67 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 3

ADBE, AMZN, GILD,

Moving Below 30 DMA = 3

HSIC, INCY, VOD,

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral