Tuesday Bull Flag...Wednesday Hammer Time...Setups and Bounce...Hammer, Bullish Engulfing Candle Patterns...

Eight of nine sectors moved higher on Wednesday …XLV, XLE and XLB were the strongest sectors while XLU was the weakest sector.  Oil futures rose 1.17 to close at 37.73. 

                         

Breadth strengthened as advancers led decliners 3.03 to 1 on the NYSE and 2.45 to 1 on the NASDAQ.

Wednesday – strengthened, advancers led

Tuesday – weakened, decliners led

Monday – weakened, decliners led

Friday – strengthened, advancers led on NASDAQ

Thursday - weakened, advancers led on NYSE

SPY up 2.23 at 206.42 on 91.7 million shares, 6% below average volume

VIX down 1.33 at 14.09…

TLT down .96 at 131.23…on 6.3 million shares, 13% below average volume

Technical Commentary:

QQQ +1.64%, IWM +1.13%, SPY +1.09%, DIA +0.69%.

This past week is another excellent example why traders should focus on trend and not confuse price fluctuation, movement above support, with trend change.  The up trend continues as long as the price action continues higher highs and higher lows.

Today QQQ, IWM, SPY and DIA bounced in their bull flag pattern.  QQQ and IWM triggered entry points while SPY and DIA are just pennies away from potential entry points.

Many bullish engulfing candle bounces and many hammer candle setups occurred on Wednesday.  Check your watch list for great candle pattern entries and setups. 

Rotation into healthcare stocks, which Chart Signals alerted readers to in mid-February, continued on Wednesday as INCY, ENDP, VRTX, BMRN, ILMN, ALXN, CELG, REGN, MYL, BIIB and AMGN were the top 11 NDX leaders.

The DJIA was led by gains in PFE, MRK, CVX, V, CSCO, XOM, NKE, AAPL and MSFT as 24 of 30 stocks moved higher.

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, QQQ, IWM, XLK, XLP, XLU, CTSH, EA, MAT, MSFT, NVDA, YHOO, CAT, UNH, VZ,

Bull Flag Bounces include: QQQ, IWM, XLV, XLY, SVXY, AAPL, ADI, AMZN, AVGO, CMCSA, FB, SBUX, TXN, BABA, BA,

Hammer Setups include: AAL, BBBY, CA, CSX, EA, FAST, KHC, LBTYA, MAR, MNST, MU, NTAP, NVDA, ORLY, PCAR, TSCO, WDC, AXP, CAT, BA, IBM, TRV,

Bullish Engulfing Bounces include: ADI, ADP, AKAM, ADSK, AMAT, AVGO, BMRN, CMCSA, ENDP, ESRX, FB, FISV, FOXA, GOOG, ILMN, INCY, INTU, LLTC, LRCX, MDLZ, MXIM, MYL, NCLH, PYPL, SBUX, STX, SWKS, TRIP, TXN, VIAB, VRSK, VRTX, XLNX, WFM, CVX, DD, DIS, HD, JPM, KO, MMM, NKE, PG, UTX, V, WMT, XOM,  

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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 93. 

92 of 100 NDX stocks closed higher on Wednesday.

85 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 6

MYL, NTES, PYPL, TRIP, VIAB, VOD

Moving Below 30 DMA = 1

FAST

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Neutral