Oil Rally Pulls Back...Energy Stocks Slump...SPX Moves Lower as Saudi Oil Minister Speaks...

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Eight of nine sectors moved lower on Tuesday…XLU, XLP and XLY were the strongest sectors while XLE was the weakest sector.  Oil futures fell 1.57 to close at 31.82. 

                         

Breadth weakened as decliners led advancers 2.06 to 1 on the NYSE and 2.23 to 1 on the NASDAQ.

Tuesday – weakened, decliners led

Monday – strengthened, advancers led

Friday – mixed, advancers led on NASDAQ

Thursday- weakened, decliners led on NASDAQ

Wednesday – mixed, advancers led

SPY down 2.45 at 192.32 on 111.4 million shares, 31% below average volume

VIX up 1.60 at 20.98…

TNX down .21 at 17.45…

TLT up .53 at 131.47…on 8.3 million shares, 23% below average volume

XLF down .38 at 20.93…on 58.1 million shares, 22% below average volume

AAPL down 2.19 at 94.69 on 31.9 million shares, 39% below average volume

FB down 1.70 at 105.46 on 25.3 million shares, 43% below average volume

Technical Commentary:

QQQ -1.64%, SPY -1.26%, DIA -1.08%, IWM -0.92%.

Oil moved lower overnight while futures open near Monday’s close.  Following comments from the Saudi oil minister regarding concerns over production cuts, stocks moved lower and stayed in a down trend for most of Tuesday.

SPY, DIA, QQQ and IWM which broke through short-term horizontal resistance on Monday made the typical pullback test of the breakout on Tuesday. Each made a higher low and again closed above their 30 DMA on Tuesday.

Eight of nine sectors fell, TLT bonds rose and TNX interest rates fell. 

Energy stocks COG, RRC, CNX, SWN, CHK, EQT, DVN, MRO, HES, EOG, APC, NVL, MPC, HP, NFX, ESV, COP, FTI, CVX, APA, PXD, CXO, CPGX, DO and MUR lead SPX lower.

Consumer Discretionary stocks SNI, M, COH, TGT, DG, PVH, HD, WHR, DRI, AN, DHI, GME, CCL, GPS, IPG, BBY, TWX, LEN, VIAB and RCL rally as broad market moves lower.

NCLH +2.77, +6.28% leads NDX on positive earnings reaction.

MSI +4.03, +6.04% on positive earnings reaction.

Twenty-seven of 30 Dow stocks were lower on Tuesday.  HD, WMT and NKE were the only Dow stocks to close higher.

Stocks below support should generally be traded bearishly until a reversal pattern forms.

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Bull Flag Bounces include: WY, KR, HRL,

Bull Flag Setups include:  GRMN, DO, FCX, PCLN, KMI, IBM, MSFT, CMCSA, CTXS, LRCX, DD, EBAY, PYPL, XLE, XLB, XLK, WFM, EXPE, MU, PG, QRVO, TRIP, SPY, QQQ, DIA, FB, UTX, EA, DO, PCAR, TXN, ADI, MXIM, AVGO, CVX, GE,

Horizontal Breakouts include: FTR, RCL, CCL, M, EIX,

Horizontal Breakout Setups include: CHK, WHR, LUV, VIAB, HAL, SLG, MAT, AAL, CTRP, JD, AXP, DIS, JNJ, VZ, CNX, CSRA, IWM, OI, FDX, YHOO, AMZN, AA, URI, ATVI, ADBE, AKAM, MAR, WY, COH, DG, PVH, HD, RAI, PCG, WMT, DRI, AN, BCR, MDLZ, ES, DPS,

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YTD:

SPX Leaders:  NEM, KORS, FOSL, TSN, ADT, M, SE, URBN, KMI, CTL (165, -16)

SPX Losers: CHK, ESV, MRO, DVN, WMB, MPC, VRTX, URI, RIG, COP

NDX Leaders:  MAT, FAST, PCAR, FISV, DLTR, HSIC, XLNX, AKAM, CA, ORLY (20, -5)

NDX Losers:  INCY, VRTX, TRIP, WDC, REGN, BMRN, TSLA, MU, ALXN, NFLX

DJI Leaders:  VZ, WMT, XOM, MMM, PG, UNH, KO, JNJ

DJI Losers: AXP, GS, BA, INTC, JPM, DD, AAPL, DIS, MSFT, PFE 

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 up at 61. 

11 of 100 NDX stocks closed higher on Tuesday.

53 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 1

NCLH

Moving Below 30 DMA = 12

AAPL, AMZN, BIIB, BMRN, CELG, DISCA, EA, KHC, MSFT, MU, SWKS, WDC

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Neutral