SPY, DIA, QQQ, IWM Form Hammer in Bull Flag Price Pattern...Oil Rises Day 5...VIX Falls...

Six of nine sectors moved higher on Wednesday …XLU, XLF and XLE were the strongest sectors while XLY was again the weakest sector.  Oil futures rose .53 to close at 46.94.

Breadth strengthened as advancers led 1,552 to 1,407 on the NYSE and decliners led 1,482 to 1,046 on the NASDAQ.

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

Tuesday – weakened, decliners led, +1

Monday – strengthened, advancers led, +7

Friday – weakened, decliners led, +3

Thursday – strengthened, advancers led, +8

SPY up .41 at 218.37 on 75.1 million shares, 16% above average volume

VIX down .45 at 12.19

TLT up .83 at 139.22…on 5.0 million shares, 29% below average volume

Technical Commentary:

SPY +0.19%, QQQ +0.18%, DIA +0.18%, IWM -0.29%,

SPY, DIA, QQQ and IWM formed a hammer on Wednesday in day two of a bull flag pattern. 

Take a look at your stock list to see if they too formed a bullish candle pattern in day two of a bull flag price pattern.

Oil rose for the fifth straight day and nine in the past eleven days and continues to move toward its June high of 51.67.

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:  SPY, QQQ, XLNX, BURL, AVGO, CHTR, CTRP, ULTA, AMAT, SBAC, MSFT, IWM, XLF, TSN, BIIB, TMUS, ETFC, XLV, CERN, CBG, IBM, ROST, COST, BURL, ORLY, ALXN, CELG, BXP, KMX, NVDA, CBL, WMB, GPRO, AAPL,

Bull Flag Bounces include: PCLN, EA, FAS, KHC,

Horizontal Breakout Setups include: EA, PCAR, WRK, CCL, CAT, AAL, MAR, BAC, ZION, WFC, KMI, MPC, BX, HLT, HPE, DISCA, NFLX, MRK, URI, MAT, LB, JPM, C, GRMN, STX, INTC,

Horizontal Breakout include: DISCA,

New Highs include: MS, NTES, NTAP, SYMC, GS, AMBA, MU, JD, ADSK, STT, VLO, CHK,

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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 93.8, bullish.

55 of 100 NDX stocks closed higher o and one was unchanged on Wednesday.

70 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 2

CSX, SIRI,

Moving Below 30 DMA = 3

CA, DISH, ISRG,

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral