SPX Grinds to Small Gain in 16-day Channel...EPS Gainers, Losers...

Four of nine sectors moved higher on Thursday …XLK, XLB and XLP were the strongest sectors while XLF was the weakest sector.  Oil futures rose .64 to close at 41.81.

Breadth weakened as advancers led 1,682 to 1,266 on the NYSE and decliners led 1,247 to 1,304 on the NASDAQ.

Thursday – weakened, advancers led on NYSE, +4

Wednesday – strengthened, advancers led, +6

Tuesday – weakened, decliners led, +1

Monday – weakened, decliners led on NYSE, +5

Friday – strengthened, advancers led on NYSE, +6

SPY up .23 at 216.41 on 45.5 million shares, 51% below average volume

VIX down .44 at 12.42

TLT up 1.04 at 139.45…on 5.6 million shares, 38% below average volume

Technical Commentary:

QQQ +0.29%, SPY +0.11%, IWM +0.09%, DIA +0.05%,

Money continued to rotate out of earning’s losers and into earning’s winners on Thursday.  A portion of these stocks are listed below.

15-day channel range $2.34

30 DMA support level 212.47.

SPY horizontal support level 210.87.  

38.2% Fib level 210.39

New high stocks and ETF’s have rotated back to bull flag setups.

If you have been stopped this week, look for reentry according to your rules.

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.

Earning’s Announcements:

Positive Reactions: CPA, BLL, GDDY, HAR, RICE, PH, WU, CHD, WRK, LUK, RIG, XEC, DNR, TK, LPI,

CPA +10.82, +16.48%

BLL +8.41, +12.00%

GDDY +3.47, +12.26%

HAR +5.75, +7.03%

RICE +1.30, +5.42%

PH +5.18, +4.55%

WRK +1.77, +4.22%

WU +0.77, +3.87%

CHD +3.56, +3.65%

LUK+0.65, +3.61%

RIG +0.38, +3.64%

DNR +0.33, +12.41%

TK +0.28, +4.80%

LPI +0.49, +4.68%

Negative Reactions: CF, FSLR, MET, HSIC, TRIP, PWR, FOXA, IRM, PRU, TSO, LNC, APA, REGN,

CF -3.09, -12.60%

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:  STX, CSX, EBAY, NTAP, NTES, PCAR, QCOM, ROST, ULTA, TMUS, ADI, ADSK, COST, CSCO, CTRP, EXPE, ORLY, SIRI, PAYX, CBG, BA, GPS, BX, EW, DHI, CINF, X, GRMN, BIIB, CBL, JNJ, UNH, MPC, VLO, HLT, AIV, MAC, LB, WHR, BURL, JD, TSN, BXP, DLTR,

Bull Flag Bounces include: MU, NVDA, AVGO, FB, XLNX, LRCX, MXIM, TXN, ULTA, AAPL, AMZN, URI, ZION, AMBA, TJX, KMX,

Horizontal Breakout Setups include: MSFT, HPE, MLM, TMUS, BX, SWN, COST, LMT, WMB, CNC,

Horizontal Breakout include:

New Highs include: CERN, STT, BMRN,

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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 93, bullish.

61 of 100 NDX stocks closed higher and two were unchanged on Thursday.

70 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Friday:

Moving Above 30 DMA = 4

ATVI, CA, NCLH, SWKS

Moving Below 30 DMA = 5

CTXS, HSIC, JD, TRIP, VIAB

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral