WBA to Buy RAD for $17 Billion...Markets Drift as Biotech Gains...AAPL Reports...FOMC to Report Wed 2 pm ET...

Two sectors moved higher on Tuesday…XLV, XLP and XLU were the strongest sectors while XLE was the weakest sector.

Breadth weakened on the NYSE as decliners led advancers 2.85 to 1 on the NYSE and 2.44 to 1 on the NASDAQ.

Tuesday – weakened, decliners led

Monday – weakened, decliners led

Friday – weakened on the NYSE, advancers led

Thursday – strengthened, advancers led

Wednesday – weakened, decliners led

SPY down .19 at 206.60 on 77.8 million shares, 39% below average volume

VIX up .14 at 15.43…

TNX down .30 at 20.28…

TLT up .31 at 124.33…on 7.1 million shares

XLF down .14 at 23.90…on 23.2 million shares, 36% below average volume

AAPL down .73 at 115.40 on 69.7 million shares, 41% above average volume

FB down .07 at 103.70 on 23.7 million shares, 14% below average volume

Technical Commentary:

QQQ +0.20%, SPY – 0.19%, DIA -0.20%, IWM -1.10%.

SPY pulled back on below average volume for a second day ahead, of the FOMC announcement on Wednesday at 2 pm ET, while forming a bull flag pattern.  DIA is also in the second day of a bull flag pattern, while IWM pulled back from resistance in a sideways trading range.

QQQ/NDX inches higher for second day this week on gains in biotech’s BIIB, GILD, AMGN, REGN, VRTX, ALXN and CELG.  BIDU, AMZN, YHOO, MYL, CERN, CSCO, COST and MAR also add to gains.

RAD +2.59, +42.60% and WBA +5.68, +6.35 gained following the announcement that WBA would buy RAD for $17.2 billion in cash.

Tuesday earnings after the close:

AAPL +0.70, +0.61%, barely moves in after-hours on earnings beat.

AKAM -9.76, -12.92%  

TWTR -3.98, -12.70%  

VRSK -1.33, -1.44%

ESRX -1.05, -1.25%

The SPX Market Forecast is at 94.

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

Earnings this Week:

Monday – BRCM, CHKP, GLW, PBR, SOHU, SWI

Tuesday – AAPL, AKAM, BMY, DD, FISV, GILD, GRUB, JBLU, NCLH, PCAR, TWTR, SLCA, UHS, VDSI, VRSK, YNDX, MRK, PFE, CMCSA, ESRX,

Wednesday – AMGN, AXTA, BWLD, CAVM, GRMN, GD, GPRO, MCHP, NXPI, ORLY, PYPL, VLO, VLKAY, YELP, MAR, CRUS,

Thursday – AET, ALXN, MO, BIDU, CME, DB, EA, EXPE, FSLR, GT, LC, LNKD, MA, MGM, SCTY, TPX, VA, WWE

Friday – ABBV, CBOE, CVX, CVS, XOM, MYL, PSX

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Setups

Horizontal Breakout: BAC, BX, QIHU, ULTA, RAX, TWTR, UAL, YNDX, ADSK, CELG, EBAY, GILD,

Diagonal Breakout: VXX, CREE, YELP,  

Bull Flag: SPY, SVXY, C, CRM, DAL, ETFC, FAS, GME, NKE, SINA, STI, TSL, VRSN, AAPL, AVGO, INTC, QCOM, GOOGL, WFC, MXIM, ADI

                   (click image to enlarge)

Gap Down: AKAM, TWTR

At Support: CRUS, JCP, BBRY, SWKS, WDC

Moves

New Highs: CCL, NDLH, RCL,  

H Breakout: JUNO, GLW, AKAM, MAR, WBA,  

D Breakout: MYL,  

Bull Flag Bounce: W,  

MACD Divergence Bounce:  AMBA 

Gap Up: BABA, YHOO,   

Gap Down: CIEN

Support Break: BBY, IBM, LC, SEDG

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38 of 100 NDX stocks closed higher on Tuesday and two were unchanged.

78 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 3

BIIB, MYL, BMRN

Moving Below 30 DMA = 5

AVGO, BBBY, CHRW, PCAR, WYNN

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Down