SPY, DIA, XLY, FB Bull Flag Bounce as Buyers Return...

Eight of nine sectors moved higher on Monday …XLY, XLP and XLF were the strongest sectors while XLE was the weakest sector.  Oil futures fell 1.10 to close at 44.89.

Breadth strengthened as advancers led 1.71 to 1 on the NYSE and 1.37 to 1 on the NASDAQ.

Monday – strengthened, advancers led

Friday – strengthened, decliners led

Thursday - weakened, decliners led

Wednesday – weakened, advancers led

Tuesday – strengthened, advancers led

SPY up 1.64 at 207.97 on 62.1 million shares, 22% below average volume

VIX down 1.02 at 14.68

TLT down 1.56 at 127.82…on 11.0 million shares, 65% above average volume

Technical Commentary:

QQQ +0.95%, IWM +0.89%, SPY +0.79%, DIA +0.63%,

SPY, DIA, SVXY, FAS and XLY bounced on Monday creating bull flag entry signals.  Key Dow and NDX stocks JNJ, MMM, FB, CTXS, ISRG, MDLZ, TSCO, and ULTA also gave bull flag entries.

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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Bull Flag Setups include:  PCAR, XLB, XLE, XLF, XLI, XLV, UA, ATVI, CSX, CTRP, DISH, ESRX, FOXA, NXPI, VIAB, VOD, AKS, SCTY, DFS, AXP, PXD, KMX, PNR, GM, BSX, NOV, FCX, NEM

Bull Flag Bounces include: SPY, DIA, SVXY, FB, FAS, XLY, CTXS, JNJ, MMM, ISRG, MDLZ, TSCO, ULTA, SKX, COH, EQT, HAS, SWN, HOG, 

Horizontal Breakout Setups include: X, SCHN, NUE, RIG, BHI, XLY, MDLZ,

Horizontal Breakout include:  CHTR, STLD, TSN, 

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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 70, time to be defensive.

74 of 100 NDX stocks closed higher and one was unchanged on Monday.

42 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 10

ADBE, BMRN, CELG, CMCSA, FAST, HSIC, LBTYA, NVDA, ROST, TXN

Moving Below 30 DMA = 3

BIDU, NTES, VRTX

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Neutral