Oil Rallies Following Kuwait Workers Strike...SPY Near Resistance and All-time Highs...

All nine sectors moved higher on Monday …XLE, XLY and XLV were the strongest sectors while XLI was the weakest sector.  Oil futures rose 1.07 to close at 41.47. 

Breadth strengthened as advancers led 2.70 to 1 on the NYSE and 1.87 to 1 on the NASDAQ.

Monday – strengthened, advancers led

Friday – strengthened, advancers led

Thursday - weakened, decliners led

Wednesday – strengthened, advancers led

Tuesday – strengthened, advancers led

SPY up 1.46 at 209.24 on 82.4 million shares, 9% below average volume

VIX down .27at 13.35…

TLT down .57 at 131.31…on 4.4 million shares, 32% below average volume

Technical Commentary:

IWM +0.76%, SPY +0.70%, DIA +0.62%, QQQ +0.53%,

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.

HAS +4.77, +5.79% on a positive earnings reaction.

After the close today IBM and NFLX released earnings and the initial reactions were negative.  Many more key index stocks release earnings this week.

Earnings this week:

Monday – HAS, IBM, NFLX,

Tuesday – JNJ, GS, UNH, INTC,

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:  ADI, AVGO, BIDU, CTRP, NVDA, BABA, NXPI

Bull Flag Bounces include: XLP, ATVI,

Horizontal Breakout Setups include: SPY, DIA, QQQ, XLB, XLE, XLF, XLI, XLK, XLP, XLU, ADSK, ADBE, ALXN, AMAT, CMCSA, CTSH, EA, EBAY

Horizontal Breakout include: QQQ, IWM, XLV, XLY, SVXY, ADBE, CERN, HD, MSFT, 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 95. 

77 of 100 NDX stocks closed higher on Monday.

76 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 8

FISV, MU, ORLY, PAYX, PYPL, QCOM, ROST, TRIP,

Moving Below 30 DMA = 0

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up