SPX, NDX Closed Lower Following Differences from Musk, Trump on the Current Tax Bill, a Major Decline in TSLA Shares...Communication Services Led Sectors...After-hours AVGO Lower on EPS Reaction...

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SPX -31.51, 5,939, opened slightly higher, traded down and up in a range for most of the day until the last hour when sellers took control.  Comments from Musk and Trump regarding differences on the current tax bill that has passed the House and is now in the Senate, a sharp decline in TSLA shares and speeches from three Fed speakers seemed to influence Thursday’s price action.

The DJI, 42,319 -0.25%, closed lower.  The NDX -0.80% formed a bearish engulfing pattern after making a new intra-day three-month high. 

Breadth was weaker on Thursday as decliners exceeded advancers on the Nasdaq exchange and in the DJI, SPX and NDX.  Net change declining capital surged primarily resulting from a major drop in TSLA.

Thursday Session Insight: The Fed Beige Book is released eight times a year, generally two weeks before the FOMC meeting.    It is a summary of current economic conditions in the 12 Federal Reserve districts.  A pdf copy of the current release can be downloaded at no cost on the Federal Reserve website.  Even a brief casual review can help you understand economic commentary that you may hear from week to week.  Next FOMC meeting June 18.

TSLA -47.35, -14.26%, formed a large red candle in a reversal BO test pattern.

MDB +25.65, +12.84%, gap up on positive EPS reaction, EPS 1.00 beats 0.66 estimate.

After-hours: AVGO -10.93, -4.20%, lower on negative EPS reaction as EPS 1.58 beats 1.56 estimate and revenue $15.00B beats $14.99B estimate.

Mega caps MSFT, TSM, AMZN, GOOGL rose and AVGO, BRK/B, META, AAPL, NVDA, TSLA fell on Thursday. 

SPY down 2.88 at 593.05, 92.4 million shares, above average volume

VIX up .87 at 18.48,

QQQ down 3.98 at 524.79

CRM, GS, MSFT, IBM led the DJIA, 10 advancers, -1

DLTR, COO, NCLH TSCO led the SPX, 196 advancers,

MDB, TEAM, MU, ABNB led the NDX, 43 advancers,

Up: IWM,

Down: DIA, SPY, QQQ,

The SPY MFC green line is flat at 95.3 and is short-term bullish. -0.6

One of eleven sectors was higher on Thursday led by XLC, XLRE and XLI. 

Uptrend sectors: XLI, XLU, XLK, XLY,

Neutral sectors: XLC, XLF, XLP, XLRE, XLB, XLE,

Down trend sectors: XLV,

The 6-month intermediate trend is sideways.  The ten-day trend is up.

3-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Sideways

43 of 100 NDX stocks closed higher on Thursday.

74 NDX stocks are above their 30 DMA: COST, CRWD, CTAS, MNST, MELI, NFLX, ADSK, AXON, BKNG, CDNS, IDXX, TTWO, CEG, INTU, ZS, ABNB, ADI, AMAT, ANSS, ARM, AVGO, DDOG, DXCM, ISRG, KLAC, LRCX, MAR, MCHP, MDB, MSFT, SNPS, TTD, PYPL, ADBE, HON, NVDA, PAYX, VRSK, ADP, AMD, CTSH, AMZN, APP, ASML, CSCO, META, MU, ON, CSX, GEHC, LULU, TXN, MRVL, WBD, DASH, BIIB, FAST, GOOGL, LIN, AZN, GILD, PANW, SBUX, AMGN, MDLZ, CCEP, BKR, QCOM, GFS, NXPI, CSGP, FTNT, ORLY, ROP, SNPS, TEAM, TMUS,

NDX Stocks to Watch on Friday:

Moving Above 30 DMA = 6

FTNT, ORLY, ROP, SNPS, TEAM, TMUS,

Moving Below 30 DMA = 6

CDW, COST, FANG, ODFL, PLTR, TSLA,

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