DJIA: 25,410...Down 299 as Fed Chairman Testifies on Economy Before Congress...

After the Close Review of Tuesday’s market action…SPY, profit protection, retracement, DIA, CAT, CSCO, BA, INTC, QQQ, MU, AAPL, MSFT, GOOGL, NFLX, TXN, AMZN, IWM, great setups …10:45 pm PST

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Fed Chairman Powell testified before Congress on Tuesday as a pullback occurred in stocks that some attributed to the interpretation that a strong economy could lead to more than three rate hikes this year.

The DJIA fell 299 points to 25,410, led by weakness in DIS, HD, MMM, GS, MCD, CAT, AXP and IBM.  The DJIA closed above 25,000 for the twenty-sixth time this year.

Ten sectors were lower on Tuesday, led by financial XLF -0.95%, and technology XLK -1.01%.

SPY down 3.47 at 274.43 on 98.5 million shares, 28% below average volume.  Down on higher volume.

VIX up 2.79 at 18.59

Oil down 1.16 to 62.84

TLT down .17 at 118.00 on 12.5 million shares, 2% above average volume.  Down on higher volume.

INTC +1.63%, and BA +0.32%, led the DJIA, 2 advancers.

AES +7.37%, M +3.86%, and DISCA +3.46%, led the SPX.

MCHP +2.51%, ULTA +2.08%, ESRX +1.29%, MU +1.25% and IDXX +1.02% led the NDX.

Intermediate and long term up trend intact.  3-day short term trend is up.

Up:

Down: DIA, QQQ, SPY, IWM

Breadth weakened on Tuesday, as decliners led 2,276 to 675 on the NYSE and led 2,197 to 695 on the NASDAQ.

The SPY MFC green line turned at 61, bullish. 

Uptrend sectors:  XLK, XLY, XLF, XLV, XLI, XLB

Neutral sectors: XLE,

Down trend sectors: XLP, XLRE, XLU,

Intermediate-term trending stocks:  Many of these stocks have had significant pull backs over the past month and it is appropriate to wait for the uptrend to resume before considering entry… IBKR, ADBE, TAL, EA, EBAY, SHOP, LYV, SQ, RACE, BA, NVDA, VRSN, ATVI, WB, RNG, V, CAT, MAR, ALGN, CCL, RCL, TRU, WYN, PYPL, A, AABA, BABA, FCAU,  FB, ANET, CBOE, TTWO, WYNN, ISRG, AA, WUBA, EDU, CC, MU,

12 of 100 NDX stocks closed higher on Tuesday.

55 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 0                            

Moving Below 30 DMA = 10

ADP, ALXN, CSX, FB, GILD, GOOGL, ILMN, SYMC, TTWO, TXN,

The intermediate and long-term trends are still up.  The two-month trend is sideways.  The seven-day trend is sideways.

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up

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