SPY, DIA, QQQ Forming Bull Flag Pullback...ENDP Sinks on EPS...SIG Shines...

Eight of nine sectors moved lower on Monday…XLU, XLP and XLY were the strongest sectors while XLV was the weakest sector.  Oil futures rose 1.03 to close at 33.87. 

                         

Breadth weakened as advancers led decliners 1.10 to 1 on the NYSE and decliners led 1.19 to 1 on the NASDAQ.

Monday – weakened, mixed

Friday – mixed, advancers led

Thursday - strengthened, advancers led

Wednesday – strengthened, advancers led

Tuesday – weakened, decliners led

SPY down 1.53 at 193.56 on 124.6 million shares, 20% below average volume

VIX up .74 at 20.55…

TNX down .22 at 17.40…

TLT up .57 at 130.98…on 8.0 million shares, 22% below average volume

XLF down .23 at 21.09…on 57.5 million shares, 23% below average volume

AAPL down .22 at 96.69 on 35.0 million shares, 30% below average volume

FB down 1.00 at 106.92 on 32.7 million shares, 26% below average volume

Technical Commentary:

IWM -0.45%, DIA -0.79%, SPY -0.78%, QQQ -0.90%.

SPY, DIA and QQQ pulled back on Monday and are forming a bull flag pattern from a higher high to a higher low as of today.  IWM also pulled back but was the strongest broad market segment today.

On Thursday SPY broke out of double bottom resistance at 194.58 on Feb 1 with a six-week chart target of 208.07.  Today’s pullback appears to be the test that we expect to occur about 70% of the time.

ENDP -11.13, -21.02% on negative earnings reaction.

SIG +9.27, +9.27% on positive earnings reaction, approves dividend increase and share buyback.

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

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include:  SPY, DIA, XLI, DIS, XOM, EXPE, LBTYA, PCLN, CSCO, ADP, CA, EBAY, SBUX, CTRP, NTAP, UNH, FB, ILMN, MYL, HD, IBM, NKE, PG, TRV, DLTR, ATVI, FISV, KHC, ORLY

Horizontal Breakouts include: SWKS, WFM, TRIP, STX, IWM, XLB, AVGO, NCLH, ULTA, MAR

Horizontal Breakout Setups include: AMZN, NXPI, LRCX, CHTR, FAST, LLTC, PCAR, TXN,  XLY, AXP, DD, INTC, ADI, CHKP, CTSH, MXIM, NFLX, MMM, AAL, MAT

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Short-term Movers:

SPX gainers:  FTR, OKE, FSLR, NFX, WY, MSI, MRO, CHK, CF, TGT, MHK, COH, XRAY, QRVO, PWR, SNI, EIX,MOS, CRM, VFC, HBI, HCN, TSO, GME, BBBY, M, SIG, VTR, SHW, WHR,L UTX, NAVI, WR, KR

SPX losers:  SWN, EOG, EQT, NBL, COG, MTB, CVX, ECL, CMA, CXO, RF, STI, RRC, WFC, CSX, EXR, XEC, USB, PDCO, BF.BZION, ZTS

NDX gainers:  TSLA, SNDK, VRSK,, PYPL, KHC, BMRN, LRCX, TMUS, LMCA, SWKS, BIDU, ADSK, AVGO, KLAC, SRCL, WFM, MDLZ, ISRG, ESRX, SBAC

NDX losers:  ENDP, WDC, DISCA, AMGN, SYMC, VRTX, MU, MYL, LBTYA, CELG, XLNX, MSFT, MNST, CTRP, ALXN, REGN, STX, CERN, EXPE

YTD:

SPX Leaders:  NEM, KORS, FOSL, M, SE, CTL, TSN, KMI, WYNN, COH (179, -11)

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

NDX Leaders:  MAT, FAST, PCAR, KHC, PYPL, HSIC, FISV, DLTR, ISRG, ORLY   (22, -1)

NDX Losers:  INCY, VRTX, ENDP, REGN, WDC, TRIP, ALXN, MU, BMRN, ILMN

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

DJI Losers: AXP, BA, GS, JPM, INTC, DIS, DD, MSFT, AAPL, 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 85. 

26 of 100 NDX stocks closed higher and two were unchanged on Monday.

73 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 7

BIIB, CELG, EBAY, ILMN, MU, TMUS, XLNX

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Neutral