Post Brexit Broad Rally Day 2...Close at Friday's High..NKE Positive EPS Reaction...Oil Rallies Again...

All nine sectors moved higher on Wednesday …XLF, XLV and XLE were the strongest sectors while XLU was the weakest sector for the second straight day.  Oil futures rose 1.43 to close at 49.54.

Breadth held steady as advancers led 2,621 to 442 on the NYSE and led 2,060 to 575 on the NASDAQ.

Wednesday – strengthened, advancers led, +9

Tuesday – strengthened, advancers led, +9

Monday – strengthened slightly, decliners led, +1

Friday – weakened, decliners led, +1

Thursday – strengthened, advancers led, +9

SPY up 3.46 at 206.66 on 137.3 million shares, 37% above average volume

VIX down 2.11 at 16.64

TLT down 1.07 at 138.39…on 12.9 million shares, 69% above average volume

Technical Commentary:

IWM +2.27%, QQQ +1.77%, SPY +1.70%, DIA +1.62%,

Stock futures again gained overnight and SPY +3.46 gapped open and moved up to close at 206.66 just below Friday’s intra-day high of 206.90.  VIX -11.25% continued to fall on Wednesday confirming the SPX bounce.

SPX had 476 gainers including leaders MNK, UA, HST, FOSL, FL, PRGO, WY, BEN, NWSA, CMG, DAL, SPGI, CNC, WYN, UAL, C and URI.

Oil rallied for the second straight day.  Energy stocks among the top 30 SPX gainers:  MUR, RIG, HES, COP, KMI, MPC and APC.

Wednesday’s NDX leaders included STX, NTAP, NTES, BIIB, TRIP, CERN, TSLA, WBA,CHTR, MAT, SBAC, MAR, NFLX, AVGO, AAL, SBUX, ADSK, WDC, DISH, INTU, LMCA, EXPE and PCLN.

PAYX and MU have earnings on Thursday.

Earning’s Announcements:

Positive Reactions: NKE

Negative Reactions:

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:  NEM, SYMC

Bull Flag Bounces include:  MU, OKE, RIG, ULTA, MNST, SYK, AES, BCR, RRC

 Divergence Bounce: TXN, ESRX, EA, INCY, DVN, ATVI, FCX, MLM, MUR, AKAM, AMAT, BIDU, BBBY, BMRN, CELG, EXPE FAST, JD, MSFT, NFLX, QCOM, TRIP

Horizontal Breakout Setups include: NKE, MUR, SWN, GPS, EQT, COG, AIV, FISV, AVGO, GPS, CVX, AVB, EQR, ESS, GGP, EQIX, SBAC, CMCSA, XEC, NRG, FB, CERN, CTRP, MNST, TMUS

Horizontal Breakout include: IRM, DLTR, UNH, ROST, SE, NFX, NI, CNP, CINF, HCN, UDR, SPG, AMT, TSCO, AIV, JNJ, XOM, SPG, INTU

New Highs include: JNJ, DLR, AIV, FRT, KIM, MAC, CCI, AWK, O, EIX, VTR, DG, CMS, WEC, NEE, PNW, SPG, SE, NFX, CNP, CINF, AMT

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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 flat at 42, defensive, prepare to turn bullish.

96 of 100 NDX stocks closed higher on Wednesday.

38 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 19

AKAM, AMAT, AMZN, AVGO, CHTR, DISH, ESRX, FISV, HSIC, INTC, INTU, ISRG, NVDA, SBUX, STX, TXN, VRSK, WBA, WDC

Moving Below 30 DMA = 1

ENDP

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up