VIX Spikes on Brexit Eve as SPY, QQQ, IWM Drift Slightly Lower...ADBE Gaps Down After Earnings...

Three of nine sectors moved higher on Wednesday …XLV, XLB and XLP were the strongest sectors while XLE was the weakest sector.  Oil futures fell 1.20 to close at 49.00.

Breadth weakened as decliners led 1,753 to 1,234 on the NYSE and led 1,507 to 1,022 on the NASDAQ.

Wednesday – weakened, decliners led, +3

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

Monday – strengthened, advancers led, +8

Friday – strengthened, advancers led on the NYSE, +4

Thursday – weakened, decliners led, +8

SPY down .34 at 208.10 on 95.5 million shares, 13% above average volume

VIX up 2.69 at 21.17

TLT up .22 at 133.76…on 5.7 million shares, 14% below average volume

Technical Commentary:

SPY -0.16%, QQQ -0.24%, DIA -0.28%, IWM -0.39%,

Oil rose as did SPY, DIA and QQQ.  Volatility VIX jumped as SPY, QQQ, DIA and IWM drifted lower.  Bonds TLT were slightly higher.

Britons vote tomorrow Thursday, June 23, whether to stay or leave the 28-nation economic European Union.  Many expect volatility to continue until the results are known.

NDX -8.27 with point gains in GILD, CELG, PCLN, ESRX, REGN, GOOG, COST, AMGN, BIIB and AMAT.

In addition to NDX leaders additional Top 25 SPX leaders included healthcare stocks ABT, DGX, UHS, BMY IPG MRK, ILMN, MCK, LH and STJ.

ADBE -5.71, -5.73% gapped lower on a negative earnings reaction.  Another reminder why technical based trades, especially options, should be exited before earnings.

Earning’s Announcements:

Positive Reactions: 

Negative Reactions: ADBE

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:  JNJ, CSCO, XRX, FISV, AVGO, AMZN, CMCSA, INCY, IRM, X, SCHW, DISH, WYNN, GPS, VIAB, MDLZ, IWM, EA, ADP, DLTR

Bull Flag Bounces include: ESRX, WBA, SPY, UNH, SWN, AMAT

Horizontal Breakout Setups include: PCLN, MU, WDC, INTC, PAYX, OKE, MAT, ROST, HPE, XOM, CSX, RIG, CHK, RRC, CVX, CAT, IBM, DVN, NOV, STX, LB, NVDA, ULTA, CA, MNST, ATVI, TXN

Horizontal Breakout include: LRCX, WRK, SE, EQT

New Highs include: LRCX

______________________

                                                                                                                                    

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 up at 61, bullish.

43 of 100 NDX stocks closed higher and three were unchanged on Wednesday.

59 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 3

CERN, LBTYA, NTES,

Moving Below 30 DMA = 8

ADBE, ADSK, AMZN, ATVI, EA, FISV, MDLZ, TSLA,

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up