ILMN, GOOGL, AMZN Lead Weakness in NDX...JNJ, UNH Up on Positive Earnings...NFLX, IBM Lower...

Six of nine sectors moved higher on Tuesday …XLB, XLE and XLF were the strongest sectors while XLK was the weakest sector.  Oil futures rose .95 to close at 42.42. 

Breadth weakened as advancers led 2.28 to 1 on the NYSE and 1.87 to 1 on the NASDAQ.

Tuesday – weakened, advancers led

Monday – strengthened, advancers led

Friday – strengthened, advancers led

Thursday - weakened, decliners led

Wednesday – strengthened, advancers led

SPY up .66 at 209.90 on 88.3 million shares, 1% below average volume

VIX down .11at 13.24…

TLT down .41 at 130.90…on 5.2 million shares, 19% below average volume

Technical Commentary:

SPY +0.32%, DIA +0.30%, IWM +0.08%, QQQ -0.61%,

SPY closed above 208.50 short-term resistance at 209.23.  SPY short-term price target of 211.19.  SPY does have intermediate-term resistance atv209.75.  Wednesday’s breakout suggests that a dividend adjusted new all-time high is achievable.

NDX -28.33 moved lower led by weakness in ILMN, GOOG, AMZN, AVGO, EBAY, VIAB, NFL, REGN and TSLA.

NFLX -14.06, -12.97% on a negative earnings reaction.

IBM -8.53, -5.59% on a negative earnings reaction

JNJ +1.75, +1.58% on a positive earnings reaction.

UNH +2.69, +2.10% on a positive earnings reaction.

After hours:

INTC -0.66, -2.09% on a negative earnings reaction

LLTC +0.65, +1.47% on a positive earnings reaction.

YHOO +0.38, +1.05% on a positive earnings reaction.

Earnings this week:

Monday – HAS, IBM, NFLX,

Tuesday – GS, HOG, INTC, JNJ, LLTC, UNH, YHOO

Wednesday – KO, AXP, CHKP, CTXS, DISH, LRCX, MAT, QCOM

Thursday –MSFT, TRV, VZ, BIIB, GOOGL, MXIM, SBUX

Friday- GE, AAL

Technical analysis based trades should be closed before earnings.

Trade what you see, not…

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:  XLP, CTSH, CCL, INCY, NCLH, NVDA, YHOO, NXPI

Bull Flag Bounces include: LRCX, FCX, XLU, HD, TMUS, TSLA

Horizontal Breakout Setups include: QQQ, XLK, XLY, CMCSA, BABA, PFE, AMAT, AAPL, ALXN, ATVI,

Horizontal Breakout include: FCX, CTXS, XLV, PCAR 

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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 97. 

34 of 100 NDX stocks closed higher and one was unchanged on Tuesday.

72 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 6

AAL, COST, DISH, FB, SIRI, VRTX

Moving Below 30 DMA = 9

AAPL, AVGO, DISCA, EXPE, ILMN, MU, NCLH, NFLX, ROST

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up