Thursday, April 7, 2016

Stocks Sell Off as Oil Rise Pauses...SPY, DIA, QQQ, IWM Still Above Supprt in Bull Flag Pattern...

All nine sectors moved lower on ThursdayXLU, XLE and XLI were the strongest sectors while XLF was the weakest sector.  Oil futures fell .20 to close at 37.53
                         
Breadth weakened as decliners led advancers 3.35 to 1 on the NYSE and 2.71 to 1 on the NASDAQ.

Thursday - weakened, decliners led
Wednesday – strengthened, advancers led
Tuesday – weakened, decliners led
Monday – weakened, decliners led
Friday – strengthened, advancers led on NASDAQ


SPY down 2.47 at 203.95 on 113.8 million shares, 16% above average volume
VIX up 2.07 at 16.16…
TLT up 1.62 at 132.85…on 5.9 million shares, 18% below average volume


Technical Commentary:
DIA -0.99%, SPY -1.20%, IWM -1.35%, QQQ -1.44%.

QQQ and IWM pulled back after a bounce entry on Wednesday.  Both charts are still in multi-week up trends.

SPY and DIA opened lower and did not create a bounce entryBoth charts are in a muti-week uptrend, in a bull flag pattern and created a new low day in the pattern today.  Both are still bull flag setups.

The broad market one year trend is sideways and the multi-week 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.

Healthcare stocks, took a breather on Thursday with XLV pulling back to Wednesday’s large white candle S1 level where buyers stepped in and an intraday bounce occurred.

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

See Wednesday’s list


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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 91. 


7 of 100 NDX stocks closed higher on Thursday.

70 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Friday:
Moving Above 30 DMA = 1
ESRX

Moving Below 30 DMA = 16
CA, COST, EA, HSIC, JD, MAT, MNST, NTAP, ORLY, PAYX, PYPL, ROST, SIRI, TSCO, VIAB, WBA

6-month Intermediate Term Market Trend: Neutral
3-day Short Term Market Trend: Down

1 comment:

Michael Hayes said...

Dave

I hope the Atlantic crossing is smooth, hope your enjoying
the cruise

Mike

Thanks for posting on your vacation