SPX Bounces In 17-day Channel as Material and Financial Stocks Lead...

All nine sectors moved higher on Monday …XLB, XLF and XLU were the strongest sectors while XLV was the weakest sector.  Oil futures eased down .34 to close at 46.95.  Oil is forming a potential bull flag.

Breadth strengthened as advancers led 2,202 to 830 on the NYSE and led 1,772 to 1,059 on the NASDAQ.

Monday – strengthened, advancers led, +9

Friday – weakened, decliners led, +3

Thursday – strengthened, advancers led, +4

Wednesday – weakened, decliners led, +0

Tuesday – strengthened, advancers led, +7

SPY up 1.07 at 218.36 on 70.5 million shares, 18% above average volume

VIX down .71 at 12.94

TLT up 1.85 at 140.21…on 7.3 million shares, 16% above average volume

Technical Commentary:

DIA +0.55%, QQQ +0.52%, SPY +0.49%, IWM +0.14%,

Material stocks CF, AA, NEM, PPG and financial stocks WFC, VTR, AIV, PFG and WY led the SPX.

Twenty seven of 30 Dow stocks rose led by DD, TRV, AXP, JPM and IBM. 

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: URBN, EA, CHTR, LB, M, KSS, CERN, ROST, AAPL, KMI, JD, MAR, HRL, WMB, JCP, TWTR, IWM, GPRO, RL, CAT,

Bull Flag Bounces include: MPC, PCAR, GS, TMUS, KMX,

Horizontal Breakout Setups include: SPY, XLF, PCAR, GS, ETFC, CTRP, INTC, ATI, KMX, TMUS, VLO, STX, CCL, TIF, PAYX, NFLX, MSFT, AAL, MPC, C, HLT, NVDA, MAT, HPE, CBG, AVGO, WDC, QQQ, JWN, SBAC, PCLN, MPC,

Horizontal Breakout include: CBL, MU, ADBE, WFC, JPM, FAS, TSN, URI,

New Highs include: AMBA, WRK, SWKS, SYMC, PCAR, STT, CHK, BAC, ZION, MS, NTAP, AVGO, AMAT, ADSK, TIF, BURL, XLNX,

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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 pointed down below 80 at 71, defensive.  SPY is above short-term support, take defensive action if SPY breaks below 217, otherwise trend is short-term trend is neutral and stay positioned accordingly.

58 of 100 NDX stocks closed higher and two were unchanged on Monday.

61 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 4

CSX, SBAC, TMUS, VOD

Moving Below 30 DMA = 1

CHKP

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral