Hammer Time, Hammer Time on SPX, SPY, DIA, QQQ and Many More...Buyers Create Support...FOMC Announcement Wednesday...

Eight of nine sectors moved higher on Monday…XLP, XLK and XLV were the strongest sectors while XLB was the weakest sector. 

Breadth strengthened as decliners led advancers 2.80 to 1 on the NYSE and 1.73 to 1 on the NASDAQ.

Monday – strengthened, decliners led

Friday – weakened, decliners led

Thursday – mixed, mixed

Wednesday – mixed, decliners led

Tuesday – strengthened, decliners led

SPY up 1.02 at 202.92 on 181.6 million shares

VIX down 1.66 at 22.73…

TNX up .86 at 22.25…

TLT up 1.92 at 123.76…on 12.3 million shares

XLF up .05 at 23.50…on 58.2 million shares

AAPL down .70 at 112.48 on 64.7 million shares

FB up 2.54 at 104.66 on 24.7 million shares

Technical Commentary:

QQQ +0.76%, DIA +0.68%, SPY +0.51%, IWM -0.71%.

Oil fell to a new seven-year low at 34.53 and bounce to close at 36.27 up 91 cents.

The SPX fell to its Oct 14 support area of 1,990 and formed an inverse head and shoulders on the intra-day chart.  On the daily chart the SPX formed a hammer and bullish harami.  VIX confirmed the SPX reversal and formed a dark cloud cover candle pattern.

SPY +1.02, +0.51% sold off to 199.95 where buyers provided support and reversed the short-term down trend, forming a hammer and bullish harami. 

The NDX was led by gains in MSFT, AMZN, FB, GOOG, AMGN, CSCO, GILD, MDLZ, INTC and ADBE.

Chart Formations:

MSFT – bull flag setup

AMZN – bull flag setup

FB – support bounce move

GOOG, GOOGL – support bounce move

AMGN – support bounce setup

CSCO – MACD histogram divergence setup

GILD – MACD histogram divergence setup

MDLZ – support bounce setup

INTC – support bounce setup

ADBE – horizontal breakout move

30 DMA Breakout Setups – ADP, ADSK, AMGN, AMZN, EA, ESRX, FAST, FB, HSIC, NXPI, PAYX, PCLN, PYPL, TSLA, WBA, WYNN,

FOMC meeting starts tomorrow  with the announcement Wedneday afternoon to raise or not raise.   

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 down at 27. 

Short-term Chart Targets:

SPY =...204.18…

QQQ = 111.84, 112.81…

IWM = 113.60…

                   

Support Levels

SPY = 201.65, 198.94

QQQ = 109.48

IWM = 111.54

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Setups

Horizontal Breakout: TSL, MYL, ALXN, ISRG,

Diagonal Breakout: AMBA, AA, GOOGL, FB,

Bull Flag: ATVI, NVDA, MSFT, AMZN, AMAT, MNST, AVGO, JD, NFLX, LRCX, NTES, VRSN, YELP, PANW, SONC, CSIQ, CRUS, W, DAL, ULTA, LC, PLAY, BABA

At Support: STX, ILMN, SCHW, ETFC 

Moves

New Highs: MAT, ADBE

H Breakout: ADBE, SEDG, NCLH

Bull Flag Bounce: DLTR, ROST, VRSK, CSIQ, FSLR, ULTA

Gap Up: MAT, SEDG, TSL,

Gap Down: SWKS

Support Break: QRVO

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59 of 100 NDX stocks closed higher on Monday.

30 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 6

CA, COST, GOOG, LVNTA, MSFT, SNDK

Moving Below 30 DMA = 2

STX, SWKS

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Down