Tuesday, March 14, 2017

Stock Indexes Test Support on Eve of Ides of March and FOMC Announcement...TSLA Races Higher...


Setups to Watch for Wednesday

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Technical Commentary

The FOMC is expected to raise rates tomorrow at their 2 pm ET announcement.  The CME FedWatch Tool indicates a 93% probability of a ¼% increase in the fed funds rate to 1% and just a 7% probability of it remaining unchanged.  This suggests that market participants have 0% expectation probability of ½% increase.  That would be a real surprise, after all it is the Ides of March.

Stocks indexes pulled back on light volume Tuesday testing support following Friday’s support bounce.  Tuesday was a successful bullish test as QQQ, SPY and DIA made a higher low today and IWM made a similar low.  The intermediate and long-term trends are still up.


DIA -0.19%, QQQ -0.24%, SPY -0.38%, IWM -0.48%,

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DIA 9-day Bull Flag price pattern forms doji
QQQ = Bull Flag bounce day 3 forms dragonfly doji, at resistance, HBO setup
SPY = bounce on day 3 pulls back to support form hammer, above support
IWM = hammer at support on day 8 of pullback


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

Breadth weakened as decliners led 1,979 to 1,004 on the NYSE and led 1,914 to 905 on the NASDAQ.

Tuesday – weakened, decliners led, +0 sectors
Monday – steady, advancers led, +8
Friday – strengthened, advancers led, +7
Thursday – strengthened slightly, decliners led, +4
Wednesday – strengthened slightly, decliners led, +4, 1 sector unchanged

SPY down .91 at 236.90 on 59.7 million shares, 20% below average volume,
VIX up .95 at 12.30
TLT up .56 at 117.07…on 9.8 million shares 11% above average volume

Oil futures were up .03 to close at 48.50 on Tuesday

The SPY MFC green line is pointed down at 77 short-term defensive, prepare to return to bullish if price moves higher following FOMC on Wednesday.

6-month Intermediate Term Market Trend: Up
3-day Short Term Market Trend: Neutral


SPX and NDX Highlights

SPX down 8 points at 2,365.

SPX  gainers WU, MSI REG, GT, KIM, EXR, SPLS, MAA, ADI, WMT, NKE, SE, FRT, DLPH, NWSA, BWA, PSA, ISRG, FOSL, KORS, DISH, XL, DIS, GPS, DFS, VH, JNPR, AXP, LB, REGN, RL, HBI, CAG, HAS

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QQQ closes down .32 at 131.29.
   
NDX point leaders: TSLA, CMCSA, ADI, COST, GOOGL and ISRG

27 of 100 NDX stocks closed higher and one was unchanged on Tuesday.

70 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:
Moving Above 30 DMA = 1
CHTR,

Moving Below 30 DMA = 6
CHKP, CSX, LBTYA, MAR, MDLZ, STX,


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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: SPY, DIA, XLF, FAS,
BA, MCD, JPM, UTX,
NTAP, MYL, PAYX, NTES, INTU, MAR, BIIB, MNST, VIAB,
BAC, HBAN, SODA, GM, USB, SQ, GD, MS, C,

One Day Pullback: UNH, AVGO, MMM, DD,

Bull Flag Bounces include: AXP, ADI, CC, (3)

Horizontal Breakout Setups include: QQQ, XLK, FLEX, MU, AMD, TSLA, YHOO, GOOGL, RCL, JD, WUBA, BABA, SHOP, SCHW, HIG, WFC, MGM, NRG CCL, NCLH, AMZN, NVDA, QCOM, CTRP, CELG, CL, SRCL, XLP, LOW, PANW, ADSK, TSCO, PG, UPS, ETFC, STLD, VALE, ROST,

    TSLA breakout today and gap breakout setup...

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Horizontal Breakouts include: DIS, TSLA

New Highs include: WIX, EA, TXN, PCLN, KLAC, AMAT, ATVI, FB, HOLX, LRCX, SYMC, CLX, INCY, ULTA, NXPI, ADBE, SWKS, SOXL, MXIM,

At Support Setups include: IWM, GS, ZION, STI, RF, ALK, PYPL, DE, CSX, IYR, NUE, TMUS, EBAY, IBM, CAT, HAL, TLT, AA, INTC, STX, LNG, ALK, PCAR, GDXJ, HES,

Support Bounce: NKE, COST, STLD, MGM, WDC, WB, MGM, AMBA, MT, CHK, PANW, X, BHI, CLF,


Break of Support: GLW, LUV, AAL, DAL, UAL, CF, 

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