Selling Slows as SPY, DIA, QQQ at Short-term Support...

Two of nine sectors moved higher on Wednesday …XLU, XLP and XLK were the strongest sectors while XLE was the weakest sector for the third straight day.  Oil futures rose .17 to close at 44.05.

Breadth strengthened as decliners led 1,846 to 1,207 on the NYSE and 1,712 to 873 on the NASDAQ.

Wednesday – strengthened, decliners led

Tuesday – weakened, decliners led

Monday – strengthened, advancers led

Friday – strengthened, decliners led

Thursday - weakened, decliners led

SPY down 1.15 at 205.01 on 92.2 million shares, 13% above average volume

VIX up .45 at 16.05

TLT up .71 at 130.14…on 7.2 million shares, 5% above average volume

Technical Commentary:

DIA -0.55%, SPY -0.56%, QQQ -0.64%, IWM -0.82%,

SPY, DIA and QQQ closed near short-term support.  IWM closed below last week’s low.  SPY, DIA and IWM are still bull flag patterns. 

It is important to be defensive this week as the market flattens out.

Watch for potential bearish trades on the ETFs below last week’s low:

SPY support low = 205.03

DIA support low = 176.29

QQQ support low = 104.88

IWM support low = 111.72

Earning’s Announcements:

Positive Reactions:  ICE, OKE, HAIN, KAR, CCO, TGI,

Negative Reactions:  PCLN, DVN, DLPH, WU, HFC, SERV, IONS, VOYA,  

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, FAS, XLY, CTXS, XLB, XLE, XLF, XLV, CSX, ESRX, NXPI, VIAB, DFS, AXP, PXD, PNR, BSX, NOV, FCX, NEM, MMM, ISRG, SKX, COH, EQT, HAS, SWN, HOG, X, JNJ, TSCO, AEM, AFL, AMZN, BG, EGN, BMY, CL, FTNT, HAL, HBI, IR, MJN, SCI,

Bull Flag Bounces include: OKE, MDLZ, ULTA,

Horizontal Breakout Setups include: TPX, XLY, CHTR, STLD, TSN,

Horizontal Breakout 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 SPY MFC green line is pointed down at 53, time to be defensive.

23 of 100 NDX stocks closed higher and two were unchanged on Wednesday.

22 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 1

ROST

Moving Below 30 DMA = 8

CERN, DISH, ISRG, PCLN, SIRI, TMUS, TRIP, VOD

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Down