SPX, INDU, SPY, DIA, XLI and XLY Make All-time New High Close...

Seven of nine sectors moved higher on Tuesday …XLE, XLB and XLF were the strongest sectors while XLU was the weakest sector.  Oil futures rose 2.07 to close at 46.62.

Breadth strengthened as advancers led 2,139 to 878 on the NYSE and led 1,860 to 737 on the NASDAQ.

Tuesday – strengthened, advancers led, +7

Monday – weakened, advancers led, +7

Friday – strengthened, advancers led, +9

Thursday – weakened, advancers led, +4

Wednesday – strengthened, advancers led, +9

SPY up 1.55 at 214.95 on 101.2 million shares, 2% below average volume

VIX up .01 at 13.55

TLT down 2.34 at 140.00…on 15.8 million shares, 77% above average volume

Technical Commentary:

IWM +1.34%, SPY +0.73%, DIA +0.70%, QQQ +0.50%,

SPX, INDU, SPY, DIA, XLI and XLY all made a new all-time high close on Tuesday.  XLK made a 15-year new high close. 

Remember breakouts typically test about 70% of the time.

Earnings Reactions

AA +0.32, +3.55% reported better than expected EPS.

FAST -1.57, -3.46% missed EPS expectations.

Earning’s Announcements:

Positive Reactions: AA

Negative Reactions: FAST

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:  BCR, ORLY, PAYX, MNST, DLTR, AWK, CCI, CMS, CNP, DLR, EIX, KIM, NEE, NI, O, PNW, UNH, VTR, WEC, NEM, CHD, FRT, HCN, BMRN,

Bull Flag Bounces include:  RIG, SBUX, EQT, IRM, MPC, SE, NFLX,

Horizontal Breakout Setups include: SWN, RIG, NCLH, CCL, RCL, NXPI, SWKS, FOSL, AES, SE, UDR, ROST, OKE, TMUS, AKAM, CF, BIDU, VIAB, CTXS, INCY, MDLZ, URI, EXPE, ADSK,

Horizontal Breakout include:  STX, AAL, WDC, AA, TXN, NTAP, NFX, CTRP, IRM, UDR, NRG, WYNN, X, CBG, DD, DOW, LRCX, AMGN, KMX, MSFT, DVN, ADI, CBL, NRF, PYPL, FCX,

New Highs include: GPRO, IRM, ATI, CPA, BXP, EQR, AMT, EW, NUE, STLD, X, SCHN, AMAT, TRIP, INTC, EA, ATVI, INTU, LMT, MAC, ULTA, NTES, SYK, JNJ, ESRX, CVX, COF, SYF, AIV, AMBA, GPS, NKE, CERN, MLM, CMCSA, AMZN, GGP, ADP, DHI, CINF, KHC, SPG, FISV

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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 92, bullish.

68 of 100 NDX stocks closed higher and one was unchanged on Tuesday.

88 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 9

ADSK, CTXS, DISH, ILMN, NCLH, NFLX, NTAP, PCAR, TSCO,

Moving Below 30 DMA = 5

BIDU, CHKP, FAST, REGN, WBA,

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up