DJIA: Down 380...Early Rally Fades after Higher than Expected Oil Inventories...Powell to Testify before Senate on Thursday...

After the Close Review of Wednesday’s market action…$INDU, $VIX, QQQ, SPY, DIA, IWIM, INTC, MU, NTAP, NFLX, TXN, STX, ADBE, SQ, AAL, PYPL, BAC, AAPL, CSCO, MSFT, great setups …11:07 pm PST

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Stocks rallied on Wednesday before falling after oil and energy stocks dropped after oil inventories increased more than expected.  A final thrust of selling before the close was attributed to Fed Chairman Powell’s scheduled testimony to the Senate on Thursday at 10 am ET.

The DJIA fell 380 points to 25,029 was led by weakness in CAT, UNH, MMM, GS, HD, TRV, BA, AXP, DWDP and PG.  The DJIA closed above 25,000 for the twenty-seventh time this year.

Ten sectors were lower on Wednesday, led by real estate XLRE -0.13%, and discretionary XLY -0.45%.

SPY down 2.78 at 271.65 on 121.9 million shares, 11% below average volume.  Down on higher volume.

VIX up 1.26 at 19.85

Oil down 1.29 to 61.55

TLT up .75 at 118.75 on 9.3 million shares, 23% above average volume.  Up on lower volume.

UTX +0.62%, and AAPL -0.15%, led the DJIA, 1 advancer.

TJX +6.95%, EVHC +4.79%, and AAP +4.05%, led the SPX.

BKNG +6.77%, MELI +3.34%, ORLY +2.35%, MAR +2.24% and QVCA +2.01% led the NDX.

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

Up:

Down: QQQ, SPY, DIA, IWM

Breadth improved slightly on Wednesday, as decliners led 2,106 to 826 on the NYSE and led 2,117 to 798 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,

27 of 100 NDX stocks closed higher on Wednesday. Improved from 12 higher on Tuesday.

49 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 2                            

SBUX, TXN,

Moving Below 30 DMA = 8

ASML, AVGO, CTRP, ESRX, FOXA, JBHT, MDLZ, QCOM,  

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: Down

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