SPY, DIA, IWM Bull Flag Patterns Form Hammer as Buyers Return in Late Trading as Volume Spikes...

Two of nine sectors moved higher on Friday …XLU, XLY and XLE were the strongest sectors while XLV was the weakest sector.  Oil futures rose .11 to close at 45.99, its highest close since Nov 5, 2015.

For the week ended April 29 XLU +2.26%, XLE +0.69%, XLP +0.65%, XLB -0.23%, XLY -0.33%, XLI -0.44%%, XLF -1.02%,

led SPY -1.26% 

Lagging sectors XLV, XLK

YTD

Leading Sectors: XLE +11.90%, XLU +11.88%, XLB +8.48%, XLI +5.94%, XLP +3.58%, XLY +1.33%,

SPY +1.21%,

Lagging Sectors: XLK -1.63%, XLF -2.18%, XLV –3.11%,

Breadth strengthened as decliners led 1.33 to 1 on the NYSE and 1.77 to 1 on the NASDAQ.

Friday – strengthened, decliners led

Thursday - weakened, decliners led

Wednesday – weakened, advancers led

Tuesday – strengthened, advancers led

Monday – weakened, decliners led

SPY down 1.12 at 206.33 on 143.4 million shares, 72% above average volume

VIX up .48 at 15.70

TLT up .33 at 129.38…on 7.4 million shares, 12% above average volume

Technical Commentary:

DIA -0.34%, QQQ –0.53%, SPY -0.54%, IWM -0.90%,

The SPX fluctuates based on supply and demand for the individual stocks that make up the index.  Typical fluctuations can create a one to two percent pullback in the index at any time.  As pull backs increase to more than two percent a trader should be conscientious about have a point where protective action is taken.

On Friday the SPY was down -2.79% from its April 20 high before buyers took control.  The SPY finished down -2.19% from its recent high.  The SPY is in a bull flag pattern and formed a hammer on Friday.

Last weekly support on SPY is 203.09.  SPY closed well above that level at 206.33. Current price pattern is a bull flag.  Watch for a potential bull flag bounce in SPY and other strong stocks as early as Monday.

Earning’s Announcements:

Positive Reactions:  MNST, AMZN, RRC, EXPE, NWL, FLS, LEG, AON, RCL, GNW, SPN

Negative Reactions:  SRCL, STX, WDC, GILD, SWKS, PSX, LM, MPC, CBG, F, GRPN, LPNT

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:  SPY, DIA, SVXY, FB, PCAR, XLB, XLE, XLF, FAS, XLI, XLV, XLY, CTXS, UA, JNJ, MMM, CTRP, ISRG, VOD, AKS, SCTY, DFS, AXP, ATVI, MDLZ, TSCO, ULTA, CNX, SKX, PXD, KMX, COH, PNR, GM, BSX, SWN, PXD, GCI, EW, EQT, KSU, HAS, HES, HOG, ADSK

Bull Flag Bounces include: X, SLB,

Horizontal Breakout Setups include: CHTR, STLD, SCHN, NUE, RIG, TSN,

Horizontal Breakout include:  NOV, FCX, NEM, BHI, LVNTA, 

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Short-term Movers:

SPX gainers:  STJ, NOV, FCX, NEM, RRC, BSX, SWN, PXD, AA, GCI, NRG, AIZ, MUR, LLL, TWC, AWK, DPS, CHK, RCL, TSN, WM, ED, BHI, 4

SPX losers:  PRGO, HRB, XRX, HAR, RHI, ABT, GLW, GT, HOLX, CAH, UAL, FLIR, FSLR, SEE, XL, LM, LYB, BEN, WYNN, TSO, ABC, WHR, WYN, PSX, BWA, DAL, UA, AME, HES, BLL, MCK, WAT, MPC, MNK, LUV, AGN, FOSL, FE, MAS, TDC, CMG, HPE, PSA, VAR, ANTM, SCHW, LEN, COF, AMG, IVZ, SNI, AMP, 4

NDX gainers:  MNST, EXPE, CHTR, FB, AMZN, NTES, MAR, LVNTA, PCAR, 3

NDX losers:  SRCL, ENDP, STX, MYL, GILD, ALXN, AAPL, BMRN, JD, AAL, SYMC, CTRP, REGN, VIAB, SWKS, CELG, WDC, NFLX, EA, XLNX, ILMN, INCY, LRCX, DISCA, TSLA, INTC, MXIM, LLTC, CERN, GOOGL, QCOM, BBBY, ADI, MSFT, CTSH, AVGO, AMGN, 3

YTD:

SPX Leaders:  FCX, NEM, SWN, RRC, MUR, CHK, OKE, IRM EW, EQT (315, -14 > 10p 146, +2)

SPX Losers:  HRB, PRGO, AGN, ADS, MPC, WMB, TSO, RCL, UAL, CF

NDX Leaders:  PCAR, CHTR, ISRG, FAST, MAT, ULTA, FB, FOXA, TSCO, YHOO (44, -6)

NDX Losers:  ENDP, LMCA, STX, INCY, VRTX, WDC, REGN, ILMN, ALXN, TRIP

DJI Leaders:  CAT, CVX, XOM, UNH, MMM, VZ, JNJ, WMT, UTX, MCD, (17, -2)

DJI Losers:  BA, INTC, GS, MSFT, AXP, NKE, JPM, TRV, DIS, GE

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 SPY MFC green line is pointed down at 73, time to be defensive.

19 of 100 NDX stocks closed higher on Friday.

35 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 5

BIDU, EXPE, MNST, NTES, TRIP

Moving Below 30 DMA = 17

BMRN, CELG, CMCSA, EBAY, FAST, GILD, HSIC, LLTC, MU, MXIM, NVDA, PYPL, QCOM, TSLA, TXN, VRS, WDC

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Down