Stocks Rally after FOMC No Change...SPY Bull Flag Bounce...FB Gaps Higher After-hours...

Six of nine sectors moved higher on Wednesday …XLE, XLU and XLB were the strongest sectors while XLK was the weakest sector for the second day.  Oil futures rose .67 to close at 45.33, its highest close since Nov 5, 2015.

Breadth weakened as advancers led 2.32 to 1 on the NYSE and 1.03 to 1 on the NASDAQ.

Wednesday – weakened, advancers led

Tuesday – strengthened, advancers led

Monday – weakened, decliners led

Friday – strengthened, advancers led

Thursday - weakened, decliners led

SPY up .43 at 209.35 on 77.3 million shares, 7% below average volume

VIX down .19 at 13.77

TLT up 1.27 at 128.52…on 8.3 million shares, 27% above average volume

Technical Commentary:

IWM +0.35%, DIA +0.34%, SPY +0.21%, QQQ -0.80%,

More to follow…

The Fed announced interest rates unchanged today at 2 pm ET.  Following the announcement stock indices rallied.  SPY and DIA made a bull flag bounce entry and IWM broke out of its horizontal bull flag again.

The NDX -36.33 again lagged the other broad indexes and was led lower by AAPL, AMZN, MSFT, REGN, AMGN, GILD, ALXN and GOOG.

Earning’s Announcements:

Positive Reactions:  BSX, AIZ, GCI, FTI, LLL, FE, AKAM, GRMN, GD, EBAY, DPS, BA, CINF

Negative Reactions:  TWTR, RHI, GT, RMD, CMG, AAPL, OC, NCR, CHRW, PSA, HES, EQR, COF 

After-hours Reactions:

FB +9.89, +9.08% beat EPS and revenues

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:  

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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 at 83. 

57 of 100 NDX stocks closed higher on Wednesday.

63 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 6

AKAM, EXPE, FAST, MAR, ROST, WDC

Moving Below 30 DMA = 6

BIDU, CTRP, EA, ENDP, INCY, REGN,

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up