SPX Holds Support...Advancers Lead...Oil Bounces...

Four of nine sectors moved higher on Thursday …XLB, XLK and XLF were the strongest sectors while XLV was again the weakest sector.  Oil futures rose .58 to close at 47.38.   Oil is forming a potential bull flag.

Breadth strengthened as advancers led 1,632 to 1,316 on the NYSE and led 1,341 to 1,176 on the NASDAQ.

Thursday – strengthened, advancers led, +4

Wednesday – weakened, decliners led, +0

Tuesday – strengthened, advancers led, +7

Monday – strengthened, advancers led, +3

Friday – weakened, decliners led, +3

SPY down .15 at 217.70 on 67.4 million shares, 13% above average volume

VIX up .18 at 13.63

TLT down .53 at 139.17…on 5.5 million shares, 11% below average volume

Technical Commentary:

IWM +0.20%, SPY -0.07%, QQQ -0.16%, DIA -0.16%,

IWM pulled back for a second day formed a piercing line candle and is in a bull flag price pattern.  SPY, QQQ and DIA are at their short-term support of their current 15-day sideways channel. 

Consumer Discretionary stocks DG -16.18, -17.63%, SIG -12.05, -12.63% and DLTR -9.43, -9.93% gapped down following negative earnings reactions.  Big losers on Wednesday also included ESRX, STJ, MNK, ENDP, CVS, ABC and MCK.

Positive earnings reactions on Thursday included TIF +4.41, +6.40% and BURL +2.45, +3.12%. 

After the close ADSK +2.10, +3.30% on a positive EPS reaction and ULTA -3.45, -1.27% was down on a negative 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.

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: MPC, URBN, EA, BX, PCAR, GS, MU, CHTR, LB, M, KSS, CERN, ROST, TMUS, CTRP, KMX, AAPL, PCLN, KMI, JD, MAR, HRL, INTC, WMB, JCP, TWTR, IWM,

Bull Flag Bounces include: WRK, CBL, AAL, SBAC, ETFC,

Horizontal Breakout Setups include: CBL, VLO, CCL, ADBE, TIF, PAYX, ZION, NFLX, MSFT, AAL, MPC, C, PAYX, WFC, HLT, JPM, KHC, ADBE, SPY, FAS, XLF, NVDA, TSN, MAT, HPE, STX, CBG, AVGO, URI, WDC, QQQ, GPRO, JWN, RL, CAT,

Horizontal Breakout include: TIF, WRK, ZION, CHK,

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

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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 79.17, defensive.  SPY is above short-term support, take defensive action if SPY breaks below 217, otherwise the short-term trend is neutral and stay positioned accordingly.

50 of 100 NDX stocks closed higher and on Thursday.

60 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Friday:

Moving Above 30 DMA = 2

ATVI, SBAC,

Moving Below 30 DMA = 6

ALXN, BMRN, CA, CSX, DISCA, WBA

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral