SPY, DIA Break Out Hit All-time High Close...Earnings Season: AA Monday July 11 After the Close...

All nine sectors moved higher on Friday …XLB, XLI and XLF were the strongest sectors while XLP was the weakest sector.  Oil futures fell .07 to close at 45.12.

For the week ended July 8, XLY +3.28%, XLV +2.77%, XLI +2.18%, XLK +1.75%, 
SPY +1.52%,

Lagging sectors XLB +1.34%, XLP +0.98%, XLF +0.28%, XLU +0.13%, XLE -0.78%,

YTD 130

Leading Sectors: XLU +21.40%, XLE +12.25%, XLP +10.30%, XLB +8.15%, XLI +7.96%,

SPY +4.31%,

Lagging Sectors: XLY +3.15%, XLK +3.04%, XLV +2.30%, XLF -3.82%,

Breadth strengthened as advancers led 2,666 to 359 on the NYSE and led 2,161 to 450 on the NASDAQ.

Friday – strengthened, advancers led, +9

Thursday – weakened, advancers led, +4

Wednesday – strengthened, advancers led, +9

Tuesday – weakened, decliners led, +2

Monday – Independence Day Holiday

SPY up 3.12 at 212.65 on 133.9 million shares, 29% above average volume

VIX down 1.56 at 13.20

TLT up 1.05 at 143.60…on 10.3 million shares, 17% above average volume

Technical Commentary:

IWM +2.33%, QQQ +1.55%, SPY +1.49%, DIA +1.40%,

SPY and DIA broke out of horizontal resistance and made a new all-time high close on Friday.  XLP and XLI also made a new all-time new high close. 

Remember breakouts typically test about 70% of the time.

With the broad market reaching new highs there are many individual stocks that either broke out of horizontal resistance on Friday or that are horizontal resistance breakout setups, poised to break out perhaps as early as Monday.

Earnings season unofficially starts Monday, July 11, when AA reports after the close.

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:  UNH, NTES, SBUX, MPC, CHD, RIG,

SE, AWK, AMT, AES, CTRP, EQT, DLR, FRT, CNP, CMS, NEE, IRM, NI, O, VTR, PNW, KIM, CCI, EIX, WEC, HCN, UDR

Bull Flag Bounces include:  NFX, NFLX, MDLZ, HOG, BXP, EQR, NRG, AIV, SPG, MAC, FISV

Divergence Bounces include: CBG, FOSL, URI, NOV, DD, DOW, CCL

Horizontal Breakout Setups include: VIAB, EA, BMRN, NCLH, WDC, CTXS, NXPI, SWKS, ADI, ADSK, ROST, PYPL, CBG, CF, FOSL, COF, SWN, URI, TXN, NTAP, FCX, CCL, NKE, INCY, MDLZ

ROST, OKE, NUE, KMX, X, MSFT, TMUS, CVX, ESRX, DVN, AKAM, AMAT, BIDU, EXPE, TRIP, COG, SCHN, EW

Horizontal Breakout include:  LRCX, MU, ADI, ROST, AMGN, PYPL, SYF, GPS, COF, QCOM

New Highs include: CMCSA, INTC, CERN, AMZN, EA, GGP, ATVI, INTU, ADP, BCR, MLM, DHI, ULTA, NEM, SYK, JNJ, CINF, KHC, ORLY, PAYX, MNST, DLTR

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Short-term Movers:

SPX gainers:  AN, SYF, NUE, HOG, DHI, KMX, GPS, AYI, LEN, ABT, NAVI, TWX, JWN, AA, URBN, R, DHR, PNR, ALB, PWR, HD, NEM, PHM, JBHT, APC, EW, +5, 39

SPX losers:  HUM, VLO, FSLR, PSX, AET, MPC, MUR, BHI, OI, COP, WMB, TSO, MOS, NTRS, HSY, HBAN, DRI, -2, 20, < 0 total 113

NDX gainers:  BMRN, ENDP, VIAB, REGN, NVDA, INCY, ALXN, CELG, PCLN, AAL, NFLX, SBAC, AMGN, NCLH, COST, EBAY, MAR, WFM, WDC, TRIPK CHKP, CTXS, SIRI, MAT, AMZN, ATVI, AMAT, +4, 27

NDX losers:  MU, NTES, BIDU, VOD, JD, WBA, STX, CTRP, SBUX, DISH, -1, 10, < 0 total 13

YTD: 130

SPX Leaders:  NEM, OKE, SWN, RRC, FCX, SE, ALB, EQT, IRM, DLR (324, +10 > 10p 219, +21)

SPX Losers:  CF, PRGO, VLO, RCL, SIG, TSO, FSLR, MPC, BWA, HRB

NDX Leaders:  NVDA, ULTA, AMAT, CHTR, ISRG, KHC, DLTR, MAT, FISV, INTU (53, +6, >10p 25, +7)

NDX Losers:  ENDP, LMCA, JD, ALXN, STX, LBTYA, REGN, VRTX, AAL, NCLH

DJI Leaders:  VZ, WMT, UNH, XOM, JNJ, MMM, CVX, CAT, MRK, IBM (19, +1)

DJI Losers:  GS, AXP, BA, NKE, AAPL, JPM, MSFT, DIS, DD, V

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 86, bullish.

96 of 100 NDX stocks closed higher on Friday.

76 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 20

ADI, BBBY, CHKP, CSX, EBAY, FAST, ILMN, LLTC, LRCX, MU, MXIM, MYL, NFLX, PYPL, QCOM, TRIP, TSLA, WBA, XLNX

Moving Below 30 DMA = 1

VRTX

6-month Intermediate Term Market Trend: Up
3-day Short Term Market Trend: Up