DJIA And SPX Have All Time New Closing Highs...As RUT & NDX Have Massive Rallies...

Eight of nine sectors moved higher on Monday…surprise, surprise XLI, XLK and XLB were the strongest sectors…XLU was the weakest sector for the second straight day.

Sector Posture 

Positive trend: XLE, XLP, XLU, XLB, XLI, XLK

Neutral trend near resistance: XLF, XLV, XLY

Neutral trend near support:

Breadth strengthened…as advancers led decliners 3.84 to 1 on the NYSE and 3.95 to 1 on the NASDAQ.

Monday – strengthened, advancers

Friday – strengthened, advancers led

Thursday – weakened, decliners led

Wednesday – strengthened, advancers led

Tuesday – weakened, decliners led

SPY up 1.28 at 189.78 on 86.9 million shares

VIX down .69 at 12.23…

TNX up .33 at 26.56…

TLT down .45 at 110.79...

XLF up .22 at 22.15 on 20.8 million shares, below average volume

AAPL up 7.29 at 592.83 on 7.6 million shares

FB up 2.59 at 59.83…on 48.2 million shares, below average volume

Technical Commentary:

IWM +0.92%, QQQ +0.37%, DIA +0.65%, SPY +0.97%.

DIA all-time closing high at 166.80

SPY all-time closing high at 189.78

XLP all-time closing high at 44.55

XLB all-time closing high at 48.36

XLI all-time closing high at 53.80

XLK all-time closing high at 36.82

VIX at lowest level since Jan 10

IWM +2.27% massive rally following Friday’s bullish engulfing pattern

Just when everyone capitulates and goes over to the “down side” because the IWM was weaker what happens?  The IWM +2.27% has a massive rally to the upside.  So much for hanging a broad market view on one piece data…let’s hope they never learn.

By the way IWM is down just -1.08% YTD after Monday’s rally.

Trade with the trend of the chart you are trading and continue to move your protective stops.  Continue to follow your rules.

Short-term up trend Chart Targets:

SPY = 187.17, 189.70…

QQQ = 86.90, 87.88…

IWM = 113.84, 115.25…

Support Levels

SPY = 184.96, 183.37, 181.38

QQQ = 85.98, 85.09, 84.16

IWM = 110.12, 108.91, 106.99

Q1 Earnings Reactions

Positive Reactions – APA, CTRP, FNMA, MNST, FOXA, GMCR, PRU, SCTY, Z, ATVI, ALL, DTV, EA, HUM, TRIP, WYNN, ESI, MA, TMUS, TPX, YELP, CTRX, TSO, ANR, GRMN, ENR, LVLT, PBI, TWX, CHRW, CNX, DNB, FISV, MAR, VRSK, WLP, MGM, MRK, NOK, S, UTHR, BWLD, AAPL, AET, ALXN, ANGI, BA, BHI, BIDU, BTU, BX, C,COG, CTXS,  DAL, DAVE, DECK, DHI, DO, DV, ETFC, FCX, GE, GILD, GME, HOG, HAL, HAS, HOG, IBKR, INTC, JNJ, KO, LPNT, LRCX, MS, NXPI, POT, RF, SCHW, SNDK, SPWR, STI, SWK, SWKS, TKR, TRV, UNP, URI, WFC, XRX, YHOO

Negative Reactions – AEIS, AIG, ARWR, CAR, CBOE, CTSH, DIS, DISCA, DISH, FEYE, FXCM, GRPN, JAZZ, MCP, MOS, MRO, NVDA, PFE, PRGO, REGN, SFUN, SUNE, SSYS, TSLA, TSN, UBNT, VECO, WFM, YY,  MTW, AKAM, DVA, EXPE, KRFT, LNKD, K, VIAB, VRTX, CLX, JDSU, WDC, EBAY, ESRX, SEE, PNRA, STX, SWI, TWTR, ADM, BMY, CHKP, COH, DDD, GT, PCAR, SAVE, SOHU, ACI, AKS, ALTR, AMGN, AMZN, ATI, BAC, BBRY, BIIB, BRCM, CELG, CLF, CREE, F, FAST, FFIV, GOOG, IBM, JCI, JPM, KLAC, KMB, LLTC, LLY, LVS, LXK, MMM, MU, MXIM, NSC, NUE, P, PG, QCOM, SIRI, STLD, STT, T, UA, UNH, UPS, V, VMW, VZ, XLNX, YNDX, ZION, ZNGA, 

Reversal in progress – BRCM, LLTC, NUE, STLD, ZION

Reversal of Initial Reaction – AKS, ATI, BAC, CELG, F, IBM, KMB, LVS, MMM, MU, PG, SIRI, T, UPS, YNDX, ANGI, BIDU, NFLX, RF, INTC

The SPY Market Forecast green line is pointed up at 79.

____________________

Setups

Horizontal Breakout: CTRP, IWM, KKD, NKE, SPWR, UAL, ZION, CRM, YNDX, ADSK, FFIV, GMCR, NFLX, ROST, SBUX,

Diagonal Breakout: C, HOG, IBM, JNPR, MFRM, RCL, SCSS, CSIQ, SCTY, SFUN, TWTR, ADBE, BIDU, CTSH, PCLN,

Bull Flag: TLT,      

Potential Bullish Divergence:

Gap Up:  

Gap Down:  

Bear Flag: 

At Support:

C- Pattern:  

Moves

New Highs: ATI, SPY, SWKS, MU, SNDK,  

Gap Up: TPX, ANR, GOGO, BIDU,

Gap Down: UNG,  

H Breakout: AAL, FAS, GLW, NTES, V, CELG, COST, MNST, TRIP,

Diagonal Breakout: HOG, IWM, SCHW, LNKD, P, SOHU, TBT, VRSN, WLT, ADSK, AMZN,

Breakout Test:

Bull Flag Bounce:   

Bounce: ETFC, MS, MTW, RCL, UAL, ANGI, CRM, CSIQ, ESI, QIHU, SPLK, SWI, WLT, AAPL, FB, YHOO,

MACD Divergence Bounce: PANW, STI, X, BAC, BX, CIEN, NTES, P, RAX, TSL, STX,

Bear Flag: 

Support Break: 

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Stocks to Watch on Tuesday

Holding Above 30 DMA= 44

MAR, INTC, CHRW, SPLS, EXPD, SIAL, MDLZ, MU, SNDK, CMCSA, GILD, CHTR, AAPL, CTXS, SRCL, VOD, DTV, CELG,  FISV,  EQIX, NXPI, AVGO, MAT, VRSK, LMCA, LBTYA, SBAC, QCOM, ATVI, DLTR, KRFT, COST, CSCO, FOXA, GMCR, ALXN, CTRX, DISH, HSIC, ILMN, MNST, ORLY, PAYX, SYMC

Moving Above 30 DMA = 16

ADSK, AMAT, BIDU, BIIB, FB, GRMN, INTU, NFLX, NVDA, ROST, SBUX, SIRI, TRIP, TXN, VIAB, VRTX

Moving Below 30 DMA = 0

Staying Below 30 DMA

YHOO, CTSH, EXPE, LINTA, MYL, WYNN, REGN, TSLA, BRCM, FAST, MSFT, MXIM, CHKP, PCAR, ADI, WDC, FFIV, VIP, STX, ISRG, KLAC, LLTC, NTAP, XLNX, BBBY, ALTR, AMGN, DISCA, TSCO, AKAM, EBAY, ESRX, WFM, ADBE, AMZN, BIIB, CERN, PCLN, CA, GOOG

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Up