Tuesday, May 15, 2018

Market Pulls Back, Late Rally Forms Hammers and Re-HBO Setups...

© 2018

We alerted you on Monday “Be prepared for a potential breakout test on each of these charts” and it happened Tuesday morning.  Following Monday’s spinning top, QQQ, SPY, DIA and IWM opened lower and sold off for the first 30 minutes, testing the horizontal breakouts on SPY, QQQ and DIA.  After 30 minutes IWM rallied, while SPY, QQQ and DIA traded sidewaysA late rally led to the formation of a hammer candle on QQQ, SPY and DIA.

Consider QQQ, SPY and DIA as re-HBO setups.

IWM finished higher forming a new horizontal resistance breakout setup of its 3 ½ month ascending triangle.

The DJIA, closed down 193 points at 24,706, led by weakness in UNH, MMM, HD, CAT, BA and GS.

One sector was higher on Tuesday, led by energy XLE +0.03% and financial XLF -0.18%.

SPY down 1.88 at 271.10 on 87.0 million shares, 2% above average volume. Down on higher volume.
VIX up 1.70 at 14.63
Oil down .17 to 71.00
TLT down 1.35 at 117.25 on 12.9 million shares.

NKE +0.96%, DIS +0.47%, led the DJIA, 3 advancers.
MAT +6.13%, FLR +3.50% and KSS +3.29%, led the SPX.
SYMC +4.35%, WDC +2.29%, MU +1.91%, and AAL +1.72%, led the NDX.

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

Up: IWM,
Down: SPY, DIA, QQQ,

Breadth weakened on Tuesday, as decliners led 1,833 to 1,068 on the NYSE and led 1,548 to 1,364 on the NASDAQ.

The SPY MFC green line is pointed up and is at 92, bullish

Uptrend sectorsXLE, XLK, XLRE,
Neutral sectors: XLF, XLY, XLV, XLI, XLB, XLU
Down trend sectors: XLP

Intermediate-term trending stocks:  Many of these stocks have had significant pull backs over the past two months and it is appropriate to wait for the uptrend to resume before entry… RACE, ADBE, IBKR, ETFC, MA, V, ISRG, WIX, NDAQ, WYNN, VRSN, TAL, COP, CRM, NTAP, RNG, AA, WUBA, FCAU, NVDA, SQ, ALGN, AKAM, SHOP,

22 of 100 NDX stocks closed higher on Tuesday.

68 NDX stocks are above their 30 DMA. 

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

Moving Below 30 DMA = 3

The 6-month intermediate and long-term trends are still up.  The three-month trend is sideways.  The ten-day trend is sideways.

3-month Intermediate Term Market Trend: Sideways
3-day Short Term Market Trend: Sideways

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Scott Avery said...

Yes, I agree. Was thinking this is the time to put the orders in for bull flag set ups. The blog is so great, as it is a way for us to check our thinking and fight the good fight. Thanks as always..

Don said...

Great Set-ups - Thanks for you teachings and insights

Scott Avery said...
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Devoir said...

Dave we miss your video's...... Thanks for sharing and teaching

Instavert said...

Great site and really great info on the market. Hope to see your video's again soon!