SPY, IWM, QQQ Continue Pullback, VIX Spikes...Retail Sales Tuesday...FOMC Announcement Wednesday...MSFT to Buy LNKD...

All nine sectors moved lower on Monday …XLU, XLE and XLY were the strongest sectors while XLK was the weakest sector.  Oil futures fell .32 to close at 48.56.

Breadth strengthened as decliners led 2,296 to 736 on the NYSE and led 1,933 to 665 on the NASDAQ.

Monday – strengthened, decliners led, +0

Friday – weakened, decliners led, +1

Thursday – weakened, decliners led, +3

Wednesday – strengthened, advancers led, +8

Tuesday – weakened, advancers led on the NYSE, +5

SPY down 1.62 at 208.45 on 117.7 million shares, 48% above average volume

VIX up 3.94 at 20.97

TLT up .60 at 135.38…on 7.6 million shares, 13% above average volume

Technical Commentary:

DIA -0.76%, SPY -0.77%, QQQ -0.84%, IWM -1.09%,

SPY sold off in the last 75 minutes of trading and VIX spiked to its first close over 20 since Feb 29.  SPY momentum slowed on Monday and breadth strengthened compared with Friday.  SPY, IWM, QQQ and DIA are still forming potential bull flag patterns.  We continue to wait for the pullback to complete and bounce before taking a bullish trade.

SPY has fallen -1.92% over the past three trading days since its high on June 8.

The VIX spike is interesting in light of the May Retail Sales report coming Tuesday morning before the open and the FOMC announcement on Wednesday afternoon.

LNKD +61.13, +46.64% rose after news on buyout by MSFT which pulled back.

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:  NVDA, RRC, CVX, XOM, MYL, TMUS, INCY, MU, PAYX, SPY, DIA, IWM, AVGO, X, SWN, MXIM, MRK, AMZN, QQQ, CAT, AMAT, CTXS, PCLN, ESRX, TXN, UNH, WDC, STLD, NUE, AKS, CMCSA, WFM, DD, DISH, DLTR, EA, STX, SCHN, NXPI, ULTA, VIAB, VRTX, MNST, JEC

Horizontal Breakout Setups include: IRM, NEM, MCD, WYNN, KHC, FISV, KO, DPS

Horizontal Support Breakout include: FB, SVXY

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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 84, prepare to become defensive.

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

55 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 13

AAL, ADBE, AKAM, ATVI, EBAY, ILMN, MAT, MDLZ, MSFT, NXPI, QCOM, SWKS, VIAB,

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Down