IWM, SPY Close Above Hammer in Bull Flag Pattern, Energy Gains as Oil Rallies Day 6, NTAP Jumps 17%

Seven of nine sectors moved higher on Thursday …XLE, XLU and XLB were the strongest sectors while XLF was again the weakest sector.  Oil futures jumped 2.02 to close at 48.96. rising for the sixth straight day nearing its June 9 high of 51.67.

Breadth strengthened as decliners led 2,083 to 869 on the NYSE and led 1,728 to 824 on the NASDAQ.

Thursday – strengthened, advancers led, +7

Wednesday – strengthened, advancers led on the NYSE, +6

Tuesday – weakened, decliners led, +1

Monday – strengthened, advancers led, +7

Friday – weakened, decliners led, +3

SPY up .49 at 218.86 on 52.9 million shares, 16% below average volume

VIX down .76 at 11.43

TLT up .22 at 139.44…on 3.8 million shares, 44% below average volume

Technical Commentary:

IWM +0.74%, SPY +0.22%, DIA +0.13%, QQQ +0.03%,

SPY and IWM closed above Wednesday’s hammer on Thursday for a potential bull flag entry signal.    

Take a look at your stock list to see if triggered an entry signal in a bull flag price pattern.

NTAP +5.03, +17.44% gapped up on a positive earnings reaction.

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.

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.

______________________

Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include:  AMBA, CAT, MAT, C, QQQ, CHTR, CTRP, M, KSS, JWN, RL, AMAT, SBAC, MSFT, XLF, BIIB, TMUS, ETFC, XLV, CERN, CBG, ROST, COST, ORLY, ALXN, CELG, BXP, KMX, NVDA, CBL, GPRO, AAPL, JCP

Bull Flag Bounces include: SPY, IWM, XLNX, BURL, AVGO, ULTA, AMAT, TSN, IBM, ROST, WMB, TIF

Horizontal Breakout Setups include: BURL, CCL, AAL, MAR, BAC, ZION, WFC, BX, HLT, HPE, DISCA, NFLX, MRK, URI, JPM, STX, INTC, GRMN, FAS, KHC,

Horizontal Breakout include: LB, KMI, WMB, PCLN, EA, PCAR, WRK, MPC, XLNX, ULTA

New Highs include: NTAP, LB, MS, SYMC, GS, MU, JD, ADSK, STT, VLO, CHK, URBN, TIF

______________________

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 93, bullish.

60 of 100 NDX stocks closed higher on Thursday.

69 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Friday:

Moving Above 30 DMA = 1

MNST,

Moving Below 30 DMA = 2

CSCO, SIRI,

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral