Small Cap IWM Leads Bounce as SPY Finishes Just Short of All-time High...Oil Finds Buyers Forms Spinning Top...

Seven of nine sectors moved higher on Tuesday …XLB, XLE and XLY were the strongest sectors while XLU was the weakest sector.  Oil futures rose .18 to close at 47.57.  Buyers stepped up on Tuesday after Monday’s sell off in oil.

Breadth strengthened as advancers led 1,996 to 965 on the NYSE and led 1,629 to 915 on the NASDAQ.

Tuesday – strengthened, advancers led, +7

Monday – strengthened, advancers led, +3

Friday – weakened, decliners led, +3

Thursday – strengthened, advancers led, +7

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

SPY up .44 at 218.97 on 53.3 million shares, 12% below average volume

VIX up .11 at 12.38

TLT up .15 at 140.03…on 6.8 million shares, 2% above average volume

Technical Commentary:

IWM +0.70%, SPY +0.20%, QQQ +0.18%, DIA +0.10%,

SPY bounced on Tuesday but ran into resistance at the Aug 15 intra-day high before closing at its second highest close at 218.97.  This makes day 13 in its current sideways range of just 2.48.  Momentum continues to be slow in the broad market as individual stocks continue to dominate since July 11.

IWM closed higher while SPY, QQQ and DIA closed just below recent highs on Tuesday. 

BBY +6.43, +19.60% exceeded estimates and led the SPX on Tuesday.

Big movers on Tuesday included energy stocks CHK, MRO, RRC, SWN, WMB, APC, ENDP, MUR, DVN and MPC. 

Tuesday’s other movers included CF, DLPH, ENDP, MOS, LEN, DHI, PHM, SIG, AMAT, RCL, SPLS, CSRA, MON, URI, PVH, AMG, EMR, MNK, ULTA, CCL, BBBY, COH, FLR and HAS.

Losers were led by SJM -12.60, -8.07%, after earnings included a 7% revenue decline. Other losers included MYL, KLAC, DLR, KR, LMT NOC, CAG, WFM, CPB, PGR, PCG LNT and LLL.

There are still a large number of bull flags in the broad market, look at your stock list for potential setups for bull flag price patterns.

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.

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include:  XLV, CBL, CHTR, JCP, SBAC, BXP, XLF, TMUS, TWTR, CTRP, M, KSS, ETFC, CERN, KMX, AAPL, PCLN, IBM, URBN, WRK, MPC, AAL, DISCA, KMI, JD,

Bull Flag Bounces include: NVDA, AMBA, WMB, VLO, CHK, QQQ, GPRO, MSFT, GRMN, JWN, RL, CAT, ADBE

Horizontal Breakout Setups include: SPY, FAS, NVDA, ZION, TSN, INTC, PAYX, WDC, MAT, C, WFC, BX, HLT, HPE, NFLX, MRK, JPM, STX, KHC, CELG, BIIB, CBG,

Horizontal Breakout include: IWM, CCL, AVGO, URI, AMBA, ALXN, TIF, PAYX, WDC, BAC,

New Highs include: NTAP, NVDA, XLNX, AVGO, MS, SYMC, SWKS, PCAR, AMAT, JD, ADSK, STT, TIF, EA, ULTA, BURL, MAR, MU, LB, HRL, GS, ROST, 

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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 89, bullish.

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

71 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 4

AKAM, CA, CTSH, INTU,

Moving Below 30 DMA = 1

MYL,

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral