SPY, DIA, QQQ Form Hammer...Starboard Letter Catapults M +8%...Oil Falls to New Lows...

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Six of nine sectors moved higher on Monday…XLY, XLP and XLK were the strongest sectors while XLE was the weakest sector.  Oil falls -2.03 to new multi-year lows at 31.13.

                         

Breadth strengthened as decliners led advancers 1.86 to 1 on the NYSE and 1.56 to 1 on the NASDAQ.

Monday – strengthened, decliners led

Friday – strengthened, decliners led

Thursday- weakened, decliners led

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

SPY up .19 at 192.11 on 186.7 million shares, 51% above average volume

VIX down 2.71 at 24.30…

TNX up .28 at 21.58…

TLT down 1.35 at 122.01…on 10.0 million shares, 22% above average volume

XLF up .03 at 22.13…on 57.6 million shares25% above average volume

AAPL up 1.57 at 98.53 on 49.6 million shares, 13% above average volume

FB up .18 at 97.51 on 29.8 million shares, 40% above average volume

Technical Commentary:

DIA +0.36%, QQQ +0.31%, SPY +0.10%, IWM -0.43%.

SPY, QQQ and DIA formed a hammer candle pattern on the daily chart. 

Consumer discretionary stocks M, HBI, KSS, CCL, GME, NFLX, DLPH, HAS, LOW, FOSL and GM were leading stocks with a volume increase on Monday.  Starboard Value LP issued a letter indicating they assessment that M +2.93, +8.16%, 38.82, stock was worth $70 including its real estate holdings.

YTD:

SPX Leaders:  FLIR, M, TWX, KS, RAI, GME, WMT, HAS, HBI, EQIX, STZ

SPX Losers: FCX, WMB, MRO, ESV, APC, APA, CF, AA, AN, MUR, WYNN

NDX Leaders:  TMUS, NFLX, DLTR

NDX Losers: VRTX, JD, LBTYA, ALXN, INCY, STX, SWKS

DJI Leaders:  WMT,

DJI Losers: GS, IBM, MMM, BA, AAPL, UNH, UTX

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 9. 

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Setups

Horizontal Breakout: FLIR, GME, HAS, MO, FINL, RRC, SE,

Diagonal Breakout: DPS, NFLX, KR, WUBA, DRI, TERP, RUN,

Bull Flag: TWX, KSS, WMT, STZ, SIG, SONC, KMB, DLTR, CNC, FIVE, FSLR, MCD, SCTY, SEDG, W, SPWR, RUN,

Potential Bullish Divergence: AAPL, MNST, CRM, QRVO, TPX, YELP, ZION, LNKD

At Support: JASO, AIG

Moves

New Highs: EQIX,

H Breakout: M, RAI

Bull Flag Bounce: HAS, CCL

Bounce: SBUX, NKE, V
Support Break: SOHU, CSIQ, SLCA, STI, YNDX, CAH, MYL, FAS, 

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52 of 100 NDX stocks closed higher and one was unchanged on Monday.

7 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 2

KHC, SRCL

Moving Below 30 DMA = 2

DLTR, VOD

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Down