SPX Breaks Long-term Resistance Makes New High Close...SPY, DIA, XLI, XLP New High Close...AA EPS Scores Big After the Close...

Seven of nine sectors moved higher on Monday …XLI, XLK and XLY were the strongest sectors while XLV was the weakest sector.  Oil futures fell .57 to close at 44.55.

Breadth weakened as advancers led 2,064 to 946 on the NYSE and led 1,724 to 872 on the NASDAQ.

Monday – weakened, advancers led, +7

Friday – strengthened, advancers led, +9

Thursday – weakened, advancers led, +4

Wednesday – strengthened, advancers led, +9

Tuesday – weakened, decliners led, +2

SPY up .75 at 213.40 on 73.6 million shares, 29% below average volume

VIX up .34 at 13.54

TLT down 1.26 at 142.34…on 8.0 million shares, 8% below average volume

Technical Commentary:

IWM +1.16%, QQQ +0.57%, DIA +0.45%, SPY +0.35%,

SPX, broke out of its long term horizontal resistance and made a new all-time high close.  SPY, DIA, XLP and XLI also made a new all-time new high close. 

Remember breakouts typically test about 70% of the time.

Earnings season unofficially started today, when AA +0.32, +3.55% reported after the close with a positive earnings reaction.

Earning’s Announcements:

Positive Reactions: AA

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:  SBUX, AWK, AES, CCI, CMS, CNP, DLR, EIX, EQT, IRM, KIM, MPC, NEE, NI, O, PNW, RIG, SE, UNH, VTR, WEC, NFLX, NEM,

Bull Flag Bounces include:  NTES, CHD, AMT, AES, CTRP, FRT, IRM, O, VTR, KIM, HCN, UDR

Horizontal Breakout Setups include: NRG, WYNN, X, CBG, DD, DOW, CCL, LRCX, ROST, AMGN, KMX, OKE, X, MSFT, TMUS, DVN, AKAM, ADI, BIDU, VIAB, BMRN, WDC, CTXS, CF, SWN, TXN, NTAP, INCY, MDLZ, NFX

Horizontal Breakout include:  GPRO, ATI, CPA, CBL, NRF, AMBA, NCLH, NXPI, SWKS, BXP, EQR, AIV, SPG, MAC, FISV, FOSL, URI, ADI, PYPL, COF, CVX, EXPE, ADSK, EW, FCX,

New Highs include: NUE, STLD, SCHN, AMAT, CMCSA, TRIP, INTC, AMZN, EA, GGP, ATVI, INTU, ADP, LMT, DHI, ULTA, SYK, JNJ, ESRX, CINF, KHC, SYF, GPS, NKE, CERN, BCR, MLM, ORLY, PAYX, MNST, DLTR

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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 in the upper zone at 88, bullish.

71 of 100 NDX stocks closed higher on Monday.

84 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 11

AAL, AAPL, ADBE, AVGO, BIDU, BIIB, CTRP, GOOG, JD, SWKS, VRTX

Moving Below 30 DMA = 3

ILMN, NFLX, TSCO

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up