SPX Breaks Support as Oil Rally Fails on Inventory Report and All Sectors Move Lower...

All nine sectors moved lower on Wednesday…XLU, XLP and XLB were the strongest sectors while XLY was the weakest sector. 

                         

Breadth weakened as decliners led advancers 7.62 to 1 on the NYSE and 6.70 to 1 on the NASDAQ.

Wednesday – weakened, decliners led

Tuesday – strengthened, mixed

Monday – strengthened, decliners

Friday – strengthened, decliners led

Thursday- weakened, decliners led

SPY down 4.83 at 188.83 on 221.1 million shares, 62% above average volume

VIX up 2.75 at 25.22…

TNX down .36 at 20.66…

TLT up 1.22 at 124.99…on 15.7 million shares, 75% above average volume

XLF down .58 at 21.72…on 101.9 million shares, 104% above average volume

AAPL down 2.57 at 97.39 on 62.4 million shares, 33% above average volume

FB down 3.93 at 95.44 on 33.4 million shares, 45% above average volume

Technical Commentary:

DIA -2.18%, SPY -2.49%, IWM -3.21%, QQQ -3.45%.

Once again QQQ and SPY gapped open higher rolled over to negative territory after gasoline inventories rose 8.4 million barrels, following a rise of 10.6 million barrels the prior week.  After the inventory report, oil fell from an intraday high of 31.71, to close down 2 cents at 30.56.

Once the market turned negative it gained downward momentum breaking below Tuesday’s low before breaking Monday’s horizontal support low.  Only 36 stocks in the SP500 rose on Wednesday.

Bearish trades rule until stocks find support.

SPY break of support 161% extension target = 186.71, 200% target = 184.78

YTD:

SPX Leaders:  FLIR, M, TWX, KSS, ED, BXLT, RAI

SPX Losers: WMB, FCX, MRO, ESV, APC, AA, THC, WYNN

NDX Leaders:  ISRG

NDX Losers: INCY, VRTX, LBTYA, BMRN, SWKS, ALXN, WDC, TSLA, ADSK, JD

DJI Leaders:  WMT

DJI Losers: DD, JPM, GS, BA, CAT, AXP, CVX, CSCO, GE, HD

Remember:  “It’s a market of stocks, not just a stock market.”

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 pointed down at 7.

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Setups

Horizontal Breakout: FIVE, FLIR

Bull Flag: DRI, TWX, KSS, WMT, STZ, SIG, KMB, SE, EQIX, EAT

Bear Flag: ANTM, CNC, BSX, MTSI, FINL,

At Support: ROST, SEDG, SCTY, YELP, NFLX, MCD, DLTR, AET, HAS, MO, CCL, NKE, CELG, NTES

Moves

New Highs: TLT

H Breakout: TLT

Gap Up: ROST,

Gap Down: QRVO

Bear Flag: AAPL, MNST, CRM, TPX, AIG, SONC, W, ATVI, V, SBUX, RCL, NKE, CELG, NTES, VRSN,

Support Break: DPS, FSLR, LNKD, KR, WUBA,

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Only 1 of 100 NDX stocks closed higher on Wednesday.

2 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 7

DLTR, KHC, MAT, ROST, SRCL, SYMC, ULTA

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Down