Broad Indexes Pause, Pull Back at Resistance...

Sector Trend Strength:

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

Sideways: XLU

Down Trend:

Breadth weakened as decliners led 1,793 to 1,198  on the NYSE and led 1,802 to 965 on the NASDAQ.

Thursday – weakened, decliners led, +3 sectors

Wednesday – strengthened on the NYSE, advancers led, +8

Tuesday – strengthened, advancers led, +6

Monday – weakened, decliners led, +1

Friday – strengthened, decliners led, +9

Oil futures were up .66 to close at 53.03 on Thursday.  

SPY down .57 at 226.53 on 72.1 million shares, 13% below average volume,

VIX up .28 at 11.54

TLT down .27 at 121.89…on 9.6 million shares, 5% below average volume

Technical Commentary:

QQQ -0.15%, SPY -0.25%, DIA -0.29%, IWM -0.77%,

QQQ pulled back from its all-time high while SPY, DIA and IWM pulled back from resistance in their short-term sideways range remaining horizontal resistance breakout setups. 

QQQ, SPY, DIA and IWM pulled back to support after the open on below average volume where big money stepped in and rallied the indexes forming hammer/dragonfly doji on each chart.

TIF +3.61% leads SPX.

SPX down 5 points at 2,270

SPX  gainers TIF, AA, ABC, DISCA, LLY, CPB, MNK, AYI, NRG, BBY, AMZN, O, CNC, ANTM, KIM, CERN, BXP, MCO, IRM, LKQ, HRL, CI, RRC, PBI, KR, LYB, SNI, EVHC, GPS, EQR, DRI, FAST, MAA, HAS, CSRA, UDR, KMI, SLG, KSS, EL, MCK

QQQ closes down 19 cents at 122.74 after rising for seven straight days.

   

NDX point leaders: AMZN, FB, KHC, INCY, CSX and PYPL

Earnings this week:

Monday – AYI, GPN, CMC

Tuesday –

Wednesday – KBH

Thursday – DAL

Friday – BAC, BLK, JPM, PNC, WFC

2016 Q4 EPS

EPS Positive Reactions

SNX, MSM, CUDA, GPN, MU, CAG, NKE, KMX, CCL, JBL

EPS Negative Reactions

AYI, CMC, STZ, SCHN, RHT, BBBY, FINL, AGN, FDX, GIS, ADBE

Trade with the trend of the chart you are trading and continue to move your profit protection stops.  Continue to follow your rules.

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

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: NTES, MS, ADP, SBUX, GOOG, TSLA, SQ, F, FAS, DE, FISV, UTX, GD, COST, CMA, NFLX, XLNX, PAYX, JPM, C, LNG, HAL, EBAY, STLD, USB, XLRE, XLV, AVGO, TMUS, ETFC, DE,

One Day Pullback: QQQ, CCL, CHTR, FCAU, AKAM, RCL, ADBE, FTI,

Bull Flag Bounces include: KLAC, CTXS,

At Support Setups include: MMM, MSFT, ZION, ICE, ATI, EA, X, PWR, MAR, INTC, JPM, STLD,

Support Bounce: FAST, WBA, IWM, HES, BHI, DISCA, ADI, TRV, CC, UPS, APA,

Horizontal Breakout Setups include: SPY, WDC, SOXL, FSLR, VALE, FAST, CFG, MU, DAL, LUV, CAR, TSCO, TLT, CE, MGM, BBY, TXN, DIA, AMAT, AAL, ATVI, GS, BA, AKAM, STI, HBAN, KEY, RF, HIG, LRCX, MCD, NVDA, ADSK, PCLN, ADI, CC, ROST, WBA, APA, MT, MTL, AKS, NUE

Horizontal Breakouts include: ALK, GM, CLF, CHTR, CE, NCLH, CMCSA, PCAR,

New Highs include: AMZN, CHKP, CSX, FB, ALK, GM, QQQ, AAPL, SCHW,

Break of Support: STX, 

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The SPY MFC green line is in the upper zone at 89 bullish. 

35 of 100 NDX stocks closed higher and one was unchanged on Thursday.

82 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Friday:

Moving Above 30 DMA = 3

EA, EXPE, FAST

Moving Below 30 DMA = 2

GILD, TSCO

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral