SPX, DJIA, NDX Break Short-term Support on Heavy Volume...Be Defensive...FDX Up, NKE Falls After-hours EPS...

Technical Commentary

Healthcare vote or other factors, the SPX broke short-term support on heavy volume on Tuesday as did the DJIA and NDX.  The RUT fell to its 4-month sideways channel support.  It’s time to be defensive. 

Chart Signals teaches that traders need to be prepared for one to three percent pullbacks at any time.  They don’t happen the majority of the time, but they can happen at any time.  Better to be prepared than surprised. Tuesday was one of those days.

SPY and DIA closed below their 30 DMA, while QQQ made a new intra-day all-time high before it fell to its 30 DMA. 

All four indexes and their respective ETFs closed near their low on Tuesday, suggesting the bottom likely was not today.  Look for at least another day of short-term downside.

 

However, the intermediate and long-term trends are still up.

DIA -1.18%, SPY -1.28%, QQQ -1.52%, IWM -2.74%,

               (click image to enlarge)

Up Trend: XLK, XLP, XLU, XLV

Sideways: XLB, XLF, XLRE, XLI, XLY,

Down Trend: XLE

Breadth weakened as decliners led 2,347 to 673 on the NYSE and led 2,369 to 528 on the NASDAQ.

Tuesday – weakened, decliners led, +1

Monday – weakened, decliners led, +4

Friday – strengthened, advancers led, +6

Thursday – weakened, advancers led, +3

Wednesday – strengthened, advancers led, +9 sectors

SPY down 3.04 at 233.73 on 131.6 million shares, 76% above average volume,

VIX up 1.13 at 12.47

TLT up .99 at 120.14…on 12.5 million shares 44% above average volume

Oil futures were down .76 to close at 48.15 on Tuesday.

The SPY MFC green line is pointed down at 78, be defensive as SPY breaks short-term support.

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Down

SPX and NDX Highlights

SPX down 29 points at 2,344, now down -2.46% from March 1 intra-day high of 2,400.98.

21 of the top 25 SPX gainers were utility stocks.  17 of the top 25 SPX losers were financial stocks.

SPX  gainers CMG, DUK, PPL, D, XEL, PCG, WEC, CMS, ED, ES, SRE, LNT, NEE, NI, FTI, AEE, PNW, NEM, FE, AEP

                  (click image to enlarge)

SPX losers

KEY, HBAN, CMA, BAC, TDG, ZION, LNC, INCY, RF, NUE, CFG, MNK, STI, FITB, BBT, RJF, AA, F, NAVI, PBCT, MS, SCHW, WDC, PNC, BWA

                  (click image to enlarge)

QQQ closes down 2.00 at 129.81.

   

NDX point losers: AAPL, AMZN, GOOG, MSFT, GOOGL, FB, AVGO, CELG, CMCSA, CSCO, NVDA, INTC, TXN, TSLA, AMGN, WBA, INCY, QCOM, NFLX, JD

                  (click image to enlarge)

6 of 100 NDX stocks closed higher on Tuesday.

50 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 21

ADSK, AKAM, AMZN, CA, CHTR, DISH, EBAY, GOOG, INTU, JD, LBTYA, MDLZ, MSFT, NFLX, NTES, NXPI, PCAR, REGN, TSLA, VRTX, XLNX

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: ADBE, ATVI, AVGO, EA, EXPE, FISV, NXPI, PAYX, PCLN, SWKS, TXN, ULTA, HD, JNJ, UNH, CLX, FLEX,

One Day Pullback: AAPL, AMAT, CTRP, FB, HAS, JD, KLAC, LRCX, MU, NFLX, NVDA, PYPL, SYMC, YHOO, DIS, MCD, MMM, NKE, UTX, SOXL, BABA, RCL, MXIM, WIX, CF, EBAY, INTC, AMD,

Horizontal Breakout Setups include: GDXJ, XLU, TLT,

New Highs include: CCL, NRG

At Support Setups include: ADP, AMZN, CMCSA, WDC, V, ALK, LNG, ROST, IWM, NUE, AA, GLW, LUV, AAL, DAL, UAL,

Support Bounce:

Break of Support: GS, ZION, STI, RF, BA, CSX, IBM, STX, ADI, X, PANW, 

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Earnings

This week:

Monday –

Tuesday – GIS, LEN, FDX, NKE

Wednesday – CTAS,

Thursday – ACN, PVH, CAG, MU

Friday –

Earnings Reports

Positive earnings reactions

Negative earnings reactions

LEN -1.41, -2.68%

GIS -0.50, -0.83%

After-hours reports

FDX +3.76, +2.14%

NKE -0.67, 1.14%

2016 Q4 EPS (since Mar 7)

EPS Positive Reactions

TIF, ADBE, ORCL, ULTA, SIG, HRB

EPS Negative Reactions

LEN, GIS, URBN,

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