QQQ, IWM, SPY, DIA all Gain in May...

Three of nine sectors moved higher on Tuesday…XLU, XLV and XLK were the strongest sectors while XLP was the weakest sector.  Oil futures fell 49 cents on Monday and today fell another .24 to close at 48.83.

Sectors in May:

XLK +4.89%, XLV +2.23%, XLF +1.89%, led

SPY +1.70% 

XLU +1.51%, XLP +0.69%, XLY +0.05%, XLB -0.34%, XLI -0.43%, XLE -0.93%

Breadth weakened as advancers led 1,629 to 1,409 on the NYSE and led 1,452 to 1,165 on the NASDAQ.

Tuesday – weakened, advancers led 

Monday – Memorial Day Holiday

Friday – strengthened, advancers led

Thursday - weakened, advancers led on NYSE

Wednesday – weakened, advancers led

SPY down .40 at 209.84 on 109.6 million shares, 36% above average volume

VIX up 1.07 at 14.19

TLT up .31 at 130.16…on 8.3 million shares, 21% above average volume

Technical Commentary:

IWM +0.35%, QQQ +0.19%, SPY -0.19%, DIA -0.48%,

QQQ +4.35% the broad index ETFs in May ahead of IWM +2.24%, SPY +1.70% and DIA +0.03%.  QQQ leaders in May included NVDA, NTES, EA, AMAT, MU, INCY, NFLX, ATVI, WDC, DLTR, ULTA, WFM, NXPI, VRTX and XLNX which all gained more than 10% for the month.

NVDA, NTES, EA, AMAT, INCY, ATVI, DLTR, ULTA and WFM had positive earnings reactions in May.

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:  MLM, WYNN, ISRG, KHC, GD, JPM, BAC, C, XLNX, XLB, CE, ORCL, NUE, STLD, XEC, MS, AMAT, ULTA, EQIX, ALB, TXN, ADSK, FCX, FTNT, WM,

Bull Flag Bounces include:  SWN, RRC, SWKS, WMB, CERN, CHKP, NXPI, VMW,

ADSK,

Horizontal Breakout Setups include: SWN, RRC, SWKS, WMB, CTXS, ZION, STI, CERN, VMW, GLPI, REGN, BMRN, OKE, EQT, MUR, MAT, FISV, DIA, XLI, XLF, FAS, PCAR, SCHN, TSCO, UTX, ADP, LUK, JEC, CLR, JNJ, ATVI, EA, BSX, YELP, FMC, WWAV, ADI, RSPP, WRK, CRZO, MXIM, AVGO

Horizontal Breakout include:  MSFT, NRG, FLIR, AMZN, CMCSA, MU, AXP

New Highs include: NVDA, DLTR, CNP, NXPI 

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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 SPY MFC green line pointed up at 80, bullish.

60 of 100 NDX stocks closed higher and on Tuesday.

77 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 5

CHKP, CSX, DISCA, SWKS, SYMC

Moving Below 30 DMA = 2                                                                        

ADK, ORLY,

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up

SPY New High Close at Horizontal Resistance...

Eight of nine sectors moved higher on Friday…XLF, XLK and XLY were the strongest sectors while XLB was the weakest sector.  Oil futures rose .16 to close at 49.56.

For the week ended May 27, XLK +3.21%, XLF +2.59%,

led SPY +2.31% 

Lagging sectors XLV +2.14%, XLY +2.08%, XLB +1.94%, XLI +1.64%,XLP +1.61%, XLE +1.47%, XLU +1.12%,

YTD 102

Leading Sectors: XLU +12.82%, XLE +11.29%, XLB +8.66%, XLI +5.51%, XLP +4.97%,

SPY +3.12%,

Lagging Sectors: XLK +2.97%, XLY +1.48%, XLF -0.08%, XLV –1.18%, 

Breadth strengthened as advancers led 2,044 to 990 on the NYSE and led 1,751 to 824 on the NASDAQ.

Friday – strengthened, advancers led

Thursday - weakened, advancers led on NYSE

Wednesday – weakened, advancers led

Tuesday – strengthened, advancers led

Monday – weakened, advancers led on NASDAQ

SPY up .90 at 210.24 on 64.2 million shares, 20% below average volume

VIX down .31 at 13.12

TLT down .19 at 129.85…on 5.2 million shares, 23% below average volume

Technical Commentary:

IWM +1.00%, QQQ +0.52%, SPY +0.43%, DIA +0.24%,

SPY closed at 210.24 a new high close (dividend adjusted) by 14 cents and just 68 cents below its all-time intraday high of 210.92.  SPY closed just one cent off its high of the day even though Friday preceded the three-day Memorial Day weekend.

SPY closed at a new high even though not one of it nine sectors XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV and XLY closed at a new high.  This suggests that SPY could be headed higher as individual sectors gain strength and move higher.

Ninety four NDX stocks rose for the week led by DLTR, MU, WDC, VIAB, ULTA and NFLX.

Earning’s Announcements:

Positive Reactions:  ULTA, VEEV

Negative Reactions: PANW, GME

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.

______________________

Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include:  SWN, RRC, MLM, WYNN, ISRG, KHC, TSN, SYY, GD, SWKS, WMB, CTXS, ZION, STI, JPM, BAC, C, CERN, CHKP, NXPI, XLNX, VMW, XLB, CE, ORCL, NUE, STLD, XEC, MS,

Bull Flag Bounces include:  GLPI, REGN, ADSK, BMRN, MSFT,

Horizontal Breakout Setups include: OKE, FCX, EQT, NRG, MUR, MAT, FISV, FTNT, WM, ADSK, BMRN, MSFT, DIA, XLI, XLF, FAS, PCAR, SCHN, TSCO, UTX, FLIR, ADP, LUK, JEC, CLR, JNJ, ATVI, EA, BSX, YELP, AMZN, FMC, WWAV, ADI, RSPP, WRK, CRZO, CMCSA, MXIM, AVGO, MU, AXP

Horizontal Breakout include: CNP, TXN,

New Highs include: NVDA, AMAT, ULTA, DLTR, EQIX, ALB, CNP, TXN, 

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Short-term Movers:

SPX gainers:  HPE, HPQ, SWN, ULTA, CHK, DG, ADM, CNC, WYNN, MON, XRX, SPLS, LM, LB, PDCO, AAP, IVZ, PVH, EQIX, NAVI, RIG, TDC, LKQ, FLR, EQT, MCO, GLW, DNB, ABBV, FLS, BEN, WRK, HST, AN, DVN, ROK, URI, CMI, RHT, M, ABT, APC, HES, MCPH, PHM, MUR, AMG, WFC, SYF, ETFC, ADS, PH, IP, COF, HAL, BS, SCHW, CMA, NUE, 4

SPX losers:  SIG, ROP, NEM, MPC, 4

NDX gainers:  DLTR, MU, WDC, VIAB, ULTA, NFLX, INCY, BIDU, LRCX, AMAT, BIIB, VRTX, STX, XLNX, CTRP, ADS, ALXN, AAPL, NTES, DISH, DISCA, CELG, ATVI, AKAM, INTU, INTC, NTAP, COST, AVGO, PAYX, AMGN, BBBY, TRIP, TXN, NXPI, PCAR, MAT, LMCA, GILD, MYL, YHOO, LLTC, GOOGL, EA, NVDA, ORLY, JD, CSCO MXIM, ADBE, ADI, MSFT, MDLZ, BMRN, TSCO, VOD, ADP, EBAY, SWKS, 3

NDX losers:  CHTR, 3

YTD:

SPX Leaders:  SWN, NEM, OKE, RRC, FCX, MLM, EQT, WYNN, NRG, MUR (326, +27 > 10p 171, +49)

SPX Losers:  HRB, PRGO, MPC, CF, LB, ABC, GPS, TSO, AGN, FSLR

NDX Leaders:  NVDA, AMAT, ULTA, CHTR, PCAR, MAT, ISRG, KHC, DLTR, FISV (49, +11)

NDX Losers:  ENDP, LMCA, STX, VRTX, REGN, AAL, WDC, ILMN, JD, ALXN

DJI Leaders:  XOM, WMT, UNH, CVX, MMM, IBM, JNJ, VZ, PFE, MRK (20, +3)

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

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 pointed up at 68, bullish.

84 of 100 NDX stocks closed higher and one was unchanged on Friday.

74 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 10

ADP, ADSK, AMGN, BIDU, CTRP, EBAY, MYL, ORLY, STX, YHOO

Moving Below 30 DMA = 1                                                                        

CHKP

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up

QQQ, SPY Inch Higher Near Resistance on Light Volume...

Five of nine sectors moved higher on Thursday…XLU, XLP and XLK were the strongest sectors while XLB was the weakest sector.  Oil futures fell .34 to close at 49.40.

Breadth weakened as advancers led 1,576 to 1,458 on the NYSE and decliners led 1,419 to 1,122 on the NASDAQ.

Thursday - weakened, advancers led on NYSE

Wednesday – weakened, advancers led

Tuesday – strengthened, advancers led

Monday – weakened, advancers led on NASDAQ

Friday – strengthened, advancers led

SPY up .06 at 209.34 on 55.2 million shares, 31% below average volume

VIX down .47 at 13.43

TLT up .67 at 130.04…on 5.4 million shares, 21% below average volume

Technical Commentary:

QQQ +0.29%, SPY +0.03%, DIA -0.11%, IWM -0.11%,

SPY closed at 209.34 its third highest dividend adjusted closing high ever.

QQQ led the broad indexes with gains in DLTR, COST, YHOO, MU, NFLX, TSLA, NTES, AKAM, and CTXS.

SPY, QQQ IWM and DIA all continue above their 30 DMA. 

XLK, XLB, XLV and XLF are the strongest sectors leading SPY +2.52% over the past five days.

Earning’s Announcements:

Positive Reactions:  DLTR COST, CPRT, LGF, HPQ, PDCO, DG, PVH, IGT

Negative Reactions: SIG, SDRL,  

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.

______________________

Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include:  TSN, GLPI, SYY, GD, SWKS, WMB, CTXS, REGN, ZION, STI, JPM, BAC, C, ADSK, BMRN, CERN, CHKP, MSFT, NXPI, XLNX, VMW, CMG,

Bull Flag Bounces include:  PPC, NTES, WM,

Horizontal Breakout Setups include: DIA, XLI, XLF, FAS, XLB, PCAR, OKE, SCHN, FCX, CE, ZION, SWN, TSCO, ORCL, UTX, FLIR, NUE, STLD, ADP, MAT, LUK, JEC, CLR, JNJ, CNP, ATVI, EA, BSX, YELP, AMZN, FMC, WWAV, XEC, ADI, RSPP, WRK, CRZO, MS, CMCSA, MXIM, AVGO, MU, TXN, AXP

Horizontal Breakout include: ALB, TMUS, FTNT, AGN,

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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 SPY MFC green line pointed up at 57, bullish.

54 of 100 NDX stocks closed higher and one was unchanged on Thursday.

65 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Friday:

Moving Above 30 DMA = 3

COST, DLTR, LMCA

Moving Below 30 DMA = 1                                                                        

SYMC

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up

Rally Continues on Strength in Energy, Materials and Financials...

Eight of nine sectors moved higher on Wednesday…XLE, XLB and XLF were the strongest sectors while XLU was the weakest sector.  Oil futures rose .64 to close at 49.74.

Breadth weakened as advancers led 2,052 to 965 on the NYSE and led 1,608 to 968 on the NASDAQ.

Wednesday – weakened, advancers led

Tuesday – strengthened, advancers led

Monday – weakened, advancers led on NASDAQ

Friday – strengthened, advancers led

Thursday - weakened, decliners led

SPY up 1.41 at 209.28 on 93.5 million shares, 10% below average volume

VIX down .47 at 13.95

TLT down .49 at 129.86…on 5.9 million shares, 7% below average volume

Technical Commentary:

DIA +0.80%, QQQ +0.72%, SPY +0.68%, IWM +0.58%,

SPY, IWM, DIA and QQQ continued to move higher on Wednesday.  SPY exceeded its May 10 high and touch its April 28 high today.

SPY, QQQ IWM and DIA are all above their 30 DMA today. 

XLF, the financial sector continued to move higher as the third strongest sector on Wednesday. 

The price bounce has occurred and it is time to be bullish.

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.

______________________

Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include:  TSN, GLPI, PPC, SYY, GD, SWKS, WMB, CTXS, NTES, REGN, WM,

Bull Flag Bounces include:  LUK, JEC, ALB, CLR, JNJ, CNP, OKE,

Horizontal Breakout Setups include: DIA, XLI, XLF, FAS, XLB, PCAR, ORCL, UTX, FLIR, NUE, STLD, ADP, MAT, LUK, JEC, ALB, CLR, JNJ, CNP, ATVI, EA, BSX, YELP, AMZN, VMW, CMG, VTR, FMC, WWAV, XEC, ADI, RSPP, WRK, CRZO, TMUS, FTNT, AGN, BAC, C, MS, CMCSA, MXIM, AVGO, MU, TXN, AXP

Horizontal Breakout include: XLV, XLE, OKE, CA, A, AAPL, EGN, ZION, STI, SWN, JPM, MRO, BAC, C

Bullish Divergence Bounce include: SCHN, FCX,

______________________

                                                                                                                                    

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 pointed up at 44, bullish.

72 of 100 NDX stocks closed higher on Wednesday.

63 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 9

AAPL, ALXN, CELG, DISH, FAST, ILMN, MSFT, SYMC, ULTA

Moving Below 30 DMA = 2                                                                        

CTRP, YHOO

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up

Divergence Bounce, Low Volume Pause, High Volume Bounce...Stocks Surge Led by Technology, Financials, Healthcare...

All nine sectors moved higher on Tuesday…XLK, XLF and XLV were the strongest sectors while XLE was the weakest sector.  Oil futures formed a bullish engulfing candle following Friday’s hammer candle while moving .99 higher to close at 49.10.

Breadth strengthened as advancers led 2,377 to 702 on the NYSE and led 2,023 to 565 on the NASDAQ.

Tuesday – strengthened, advancers led

Monday – weakened, advancers led on NASDAQ

Friday – strengthened, advancers led

Thursday - weakened, decliners led

Wednesday – strengthened, mixed

SPY up 2.66 at 207.87 on 93.5 million shares, 14% above average volume

VIX down 1.40 at 14.42

TLT down .58 at 129.86…on 5.9 million shares, 12% below average volume

Technical Commentary:

IWM +2.06%, QQQ +2.00%, SPY +1.30%, DIA +1.19%,

SPY, IWM, DIA and QQQ had MACD bullish divergence bounce on Friday, low volume pause day on Monday and a high volume bounce continuation move on Tuesday.  Just as we stated in Monday’s post, “Modest pullbacks on light volume are generally bullish,” turned to be exactly right.

SPY, QQQ and IWM closed above their 30 DMA today.  QQQ and IWM broke through horizontal resistance and SPY is a horizontal resistance breakout setup. 

XLF, the financial sector was the second leading sector on Tuesday as MCO, NDAQ, SCHW, ETFC, SLM LM, IVZ, TROW, ICE, BEN, PFG, AMP, UNM, KEY, MS, STT, FII, BLK, AXP, JPM, C, ZION, STI, BAC and WFC moved higher.

The price bounce has occurred and it is time to be bullish.

Earning’s Announcements:

Positive Reactions:  CTRP, NDSN, TOL

Negative Reactions: BBY 

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.

______________________

Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include:  LUK, JEC, TSN, GLPI, ALB, CLR, PPC, SYY, GD, JNJ, CNP, OKE

Bull Flag Bounces include:  ATVI, EA, CA, BSX, FB, FISV, MNST, NOC, LMT, A, CL, HLF, STWD, WM, YELP, AMZN, EGN, JNJ, VMW, DLR, RSPP, WRK, CLB, CRZO

Horizontal Breakout Setups include: XLB, ATVI, EA, CA, BSX, MNST, NOC, A, STWD, EGN, JNJ, VMW, NWL, CMG, VTR, XLB, FMC, WWAV, XEC, AAPL, ADI, TMUS, XLE, ZION, STI, WMB, MRK, SWN, FTNT, AFL, AGN, MRO, JPM, BAC, C, MS, CMCSA, MXIM, AVGO, MU, TXN, FLIR, SWN, AXP

Horizontal Breakout include: SVXY, QQQ, IWM, XLK, FAS, ETFC, NTES, XYL, DD, AKAM, BMRN, MAT, ADBE, CTXS, REGN, NXPI, NFLX, SWKS, WDC, LRCX, QCOM, WFM

Bullish Divergence Bounce include: DIA, XLP, XLV, XLI, XLF, PCAR, ORCL, UTX, EW, FLIR, NUE, STLD, ADP

Bullish Divergence Setups include: SCHN, FCX

______________________

                                                                                                                                    

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 turned up at 33, bullish.

98 of 100 NDX stocks closed higher on Tuesday.

56 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 18

ADI, BIIB, BMRN, CHKP, CTRP, ESRX, EXPE, GOOG, HSIC, INTC, LRCX, MAT, MDLZ, PAYX, SIRI, VIAB, VRSK, YHOO

Moving Below 30 DMA = 0                                                                        

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up