SPY Near High, Light Volume...Volatility Drops...

Six of nine sectors moved higher on Friday …XLE, XLU and XLP were the strongest sectors while XLB was the weakest sector.  Oil futures rose .28 to close at 41.38.

For the week ended July 29,

XLK +1.35%, XLV +0.28%, XLB +0.06%, XLY +0.02%,

SPY -0.06%,

Lagging sectors XLF -0.13%, XLI -0.43%, XLU -1.21%, XLE -1.38%, XLP -1.44%,

Money continued to rotate into YTD laggards XLK technology, XLV healthcare, XLY discretionary.

YTD 145

Leading Sectors: XLU +20.43%, XLB +11.70%, XLE +11.70%, XLI +9.49%, XLK +8.45%, XLP +8.34%,

SPY +6.50%,

Lagging Sectors: XLY +4.43%, XLV +4.40%, XLF -0.76%,

Breadth strengthened as advancers led 1871 to 1,117 on the NYSE and decliners led 1,333 to 1,262 on the NASDAQ.

Friday – strengthened, advancers led on NYSE, +6

Thursday – mixed, advancers led on NYSE, +6

Wednesday – weakened, advancers led on NASDAQ, +3

Tuesday – strengthened, advancers led, +5

Monday – weakened, decliners led, +1

SPY up .35 at 217.12 on 79.5 million shares, 17% below average volume

VIX down .85 at 11.87

TLT up 1.17 at 141.56…on 8.7 million shares, 3% below average volume

Technical Commentary:

QQQ +0.22%, IWM +0.20%, SPY +0.16%, DIA -0.14%,

SPY continued in its 12-day sideways trend while QQQ closed at a new high.

Consider moving up stops on short term bullish trades that could pull back.  All according to your profit protection rules.

Remember breakouts typically test about 70% of the time.

Earnings Reactions

GOOGL +25.50, +3.33%

AMZN +6.20, +0.82%

CBL +1.31, +11.93%

Earning’s Announcements:

Positive Reactions: GOOGL, AMZN, AIV, CBL,

Negative Reactions: 

Technical analysis based trades should be closed before earnings. After-hours

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:  CNP, NKE, TGT, ROST, GPS, PAYX, AES, EW, TXN, LMT, CMG, EA, INTU, ATVI, DHI, UA, ALB, SBUX, FISV, CSX, ESRX, CF, VRSK, AMBA, FB, EXPE, LRCX, ADI, NTES, URI, CSCO, CBG, NTAP,

Bull Flag Bounces include: CBL, AIV, GGP, SPG, KSS, PCLN, MSFT, COST, JNJ, CCI,

Horizontal Breakout Setups include: ZION, MAT, UNH, CTXS, TSN, MNST, XLB, SCHN, STLD, AMAT, JD, AA, NUE, JBLU, SWN, VIAB, AAL, NCLH, TRIP, IRM, RCL, CCL, CINF, MAC,

Horizontal Breakout include: HCN, TSLA,

New Highs include: X, GRMN, STT, ORLY, BMRN, WHR, BXP, BURL, ADSK, QCOM, REGN, CPA, DLTR, EBAY, NVDA, KMX, STX, CERN, MLM, TJX, LB, ULTA, BIIB, 

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Short-term Movers:

SPX gainers:  GRMN, STT, VAR, JWN, MAS, EW, FOSL, BHI, AVY, NWL, NEM, WAT, GT, PD, ZION, GPS, HOG, XL, HOLX, KSS, ZBH, CSRA, XRX, HPE, VLO, FBHS, BBY, QRVO, PFG, NDAQ, CAT, SPGI, MPC, ALK, TIF, +4, 49

SPX losers:  CI, LVLT, HIG, RHI, GCI, EMN, F, TSS, MCD, EXR, ANTM, WYN, UA, AD, CNC, NRG, UHS, PSA, AIZ, XOM, CBS, KR, R, KO, TROW, JNPR, MOS, HP, AET, FE, RAI, MI, CMG, GPN, HCA, -4, 41

NDX gainers:  LLTC, ILMN, REGN, PCAR, LMCA, TXN, MXIM, BMRN, NFLX, ORLY, ADI, XLNX, AAPL, TSLA, MU, NVDA, INCY, CELG, SIRI, GOOGL, NTES, +4, 21

NDX losers:  SRCL, AKAM, LVNTA, WFM, WDC, GILD, ADP, CHKP, ESRX, CHTR, ATVI, YHOO, -3, 12,

YTD: 145

SPX Leaders:  NEM, SWN, FCX, OKE, RRC, IRM, ALB, SE, MLM, GRMN (338, -8 > 10p 246, +0)

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

NDX Leaders:  NVDA, LLTC, ULTA, AMAT, CHTR, ISRG, TXN, QCOM, DLTR, PCAR, (55, -4, >10p 34, +2)

NDX Losers:  ENDP, LMCA, JD, ALXN, NCLH, SRCL, LBTYA, VRTX, REGN, GILD

DJI Leaders:  JNJ, CAT, UNH, VZ, WMT, MMM, IBM, PFE, XOM, CVX, (21, -2)

DJI Losers:  GS, NKE, DIS, BA, AXP, JPM, AAPL, MCD, GE

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 96, bullish.

46 of 100 NDX stocks closed higher and one was unchanged on Friday.

77 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 6

ATVI, BIDU, ESRX, INTU, SRCL, WDC

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral