Energy Sector Soars as Oil Inventories Drop...MU Moves Up from Lower Open After EPS...

For the second straight day all nine sectors moved higher on Wednesday…XLE, XLB and XLU were the strongest sectors while XLY was the weakest sector. 

Breadth strengthened as advancers led decliners 6.18 to 1 on the NYSE and 2.53 to 1 on the NASDAQ.

Wednesday – strengthened, advancers led

Tuesday – strengthened, advancers led

Monday – strengthened, advancers led

Friday – strengthened slightly, decliners led

Thursday- weakened, decliners led

SPY up 2.52 at 206.02 on 110.9 million shares

VIX down 1.03 at 15.57…

TNX up .25 at 22.64…

TLT down .92 at 121.39…on 7.3 million shares

XLF up .28 at 24.03…on 33 million shares

AAPL up 1.38 at 108.61 on 32.6 million shares

FB down .88 at 104.63 on 19.6 million shares

Technical Commentary:

IWM +1.26%, SPY +1.24%, DIA +1.03%, QQQ +0.74%.

Oil inventories dropped 5.9 barrels and oil rose 1.42 to 37.89.  XLE +4.35% was the leading sector and 16 of the top 20 SPX gainers were energy stocks including: SWN, WMB, DVN, RRC, CHK, MRO, NFX, XEC, PXD, ESV, KMI, APA, COG, CNX, EQT and APC. 

The SPX finished +25.32.  Other SPX leaders included FCX, CELG, THC and AA.

The NDX +35.33 on led by gains in CELG, MSFT, CSCO, MDLZ, INTC, AAPL, TXN and ESRX.

Interest rates rose for the second straight day and many financial stocks continued to rise including FAS, XLF, ETFC, BAC, C, MS and SCHW following Tuesday’s MACD divergence bounce.

MU -0.31, -2.12% in rallied from a lower open after reporting after the close on Tuesday, earnings that beat by .01, lower than expected revenues and lowered guidance.

Tuesday’s bull flag bounce entries continued to rise on Wednesday: VRX, MAT, KR, PG, ADBE, DPS, FB, MYL, ROST

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

The SPX MFC green line is flat at 36. 

Short-term Chart Targets:

SPY =...207.25…

QQQ = 112.69, 114.13…

IWM = 114.94, 115.56…

                   

Support Levels

SPY = 201.55

QQQ = 111.05

IWM = 111.44

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Setups

Horizontal Breakout: KR, MAT, DPS, MYL, ROST, VRX, PG, ADBE, ATVI, ILMN, JD, LRCX, AIG, AMBA, BABA, DAL, KWEB, PLAY, RCL, SEDG, YELP, CRM, TSL,

Diagonal Breakout: NVDA, PANW, VRSN,

Bull Flag: AMZN, EXPE, SCTY, WUBA, RUN, TERP, SUNE,

Potential Bullish Divergence: LNKD

C- Pattern: YNDX,

Moves

New Highs: SOHU, SONC, W, SPWR,

H Breakout: AA, MPEL, YHOO, GOGO, QRVO

D Breakout:

Bull Flag Bounce: MSFT, TRIP, FSLR, NTES,

MACD Divergence Bounce: LLTC, NFLX, TXN, TPX, V, ZION

Gap Down: MU

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80 of 100 NDX stocks closed higher and one was unchanged on Wednesday.

51 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 9

AAL, ADP, CELG, CSCO, HSIC, PAYX, PCAR, SNDK, SRCL   

Moving Below 30 DMA = 1

NXPI,

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up