Oil Hits New 2016 High Close as Rally Continues...Stock Rally Holds...JPM EPS Wednesday Before Open...

All nine sectors moved higher on Tuesday …XLE, XLB and XLF were the strongest sectors while XLI was the weakest sector.  Oil futures rose 1.28 to close at 41.64. 

Breadth strengthened as advancers led decliners 3.95 to 1 on the NYSE and 1.94 to 1 on the NASDAQ.

Tuesday – strengthened, advancers led

Monday – weakened, advancers led on NYSE

Friday – strengthened, advancers led

Thursday - weakened, decliners led

Wednesday – strengthened, advancers led

SPY up 1.90 at 205.92 on 114.8 million shares, 20% above average volume

VIX down 1.41 at 14.85…

TLT down .91 at 130.93…on 4.2 million shares, 39% below average volume

Technical Commentary:

IWM +1.08%, DIA +0.94%, SPY +0.93%, QQQ +0.84%.

Oil continued to rally on Tuesday and stocks rally held as SPY and DIA closed with a bounce entry, while QQQ and IWM also rose and set up a potential bounce entry point for Wednesday. 

SPY two-week support is 202.40.  Last week SPY pulled back -1.96% to its weekly low on Thursday of 203.09 before buyers appeared.  SPY is well above last week’s support with today’s bounce.  The multi-week trend continues to be up.

AA closed lower but did rally from Tuesday’s lower open following earnings Monday evening.  JPM releases earnings before the open on Wednesday.

AA -0.26, -2.67% after EPS beat and revenues miss.

FAST -1.60, -3.41% on negative earnings reaction.

CSX +0.25, +1.00% after-hours, inline EPS, revenue miss.

Monday – AA

Tuesday – FAST, CSX

Wednesday – JPM

Thursday – BLK, DAL, BAC, WFC

Friday- C, RAI, RF, SCHW

The broad market one year trend is sideways and the short-term trend is near resistance.  Risk can be balanced with bear call spreads above resistance, VXX short put spreads below support, TLT positions and bearish trades in stocks that are already below support in a down trend.  All according to your rules.

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:  QQQ, IWM, XLK, XLP, XLV, XLY, SVXY, CCL, RCL, BABA, HD, IBM, MSFT, PFE, UNH, AMAT, ATVI, BIIB, BMRN, CMCSA, CTSH, CTXS, EBAY, ILMN, INCY, LRCX, NCLH, NVDA, TMUS, TSLA, VRTX, MXIM

Bull Flag Bounces include: SPY, DIA, XLU, NFLX, AAPL, CAT, ALXN, AMGN, REGN, TXN,

Horizontal Breakout Setups include: SPY, DIA, FCX, TXN, AMZN, YHOO, JNJ, KO, V, ESRX, NXPI,

Horizontal Breakout include: CHK, CTRP, JD, XLE, CVX, MMM, NFLX, 

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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 85. 

Prepare to become defensive if the MFC green line drops below 80.

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

68 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 8

BMRN, DLTR, EBAY, LVNTA, MAT, PCAR, TSCO, VRSK

Moving Below 30 DMA = 4

ADSK, SWKS, SYMC, VRTX

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Neutral