Stocks Bounce Back Following Tuesday's Selloff...

Six of nine sectors moved higher on Wednesday …XLE, XLF and XLI were the strongest sectors while XLU was the weakest sector.  Oil futures rose 1.45 to close at 41.17.

Breadth strengthened as advancers led 2,011 to 964 on the NYSE and led 1,710 to 850 on the NASDAQ.

Wednesday – strengthened, advancers led, +6

Tuesday – weakened, decliners led, +1

Monday – weakened, decliners led on NYSE, +5

Friday – strengthened, advancers led on NYSE, +6

Thursday – mixed, advancers led on NYSE, +6

SPY up .63 at 216.18 on 53.3 million shares, 43% below average volume

VIX down .51 at 12.86

TLT up .08 at 138.41…on 4.9 million shares, 46% below average volume

Technical Commentary:

IWM +0.81%, QQQ +0.33%, SPY +0.29%, DIA +0.21%,

IWM, QQQ and SPY bounced following Tuesday’s selloff recovering a portion of their modest drawdowns.  SPY 216.18 closed back in its 15-day range between 215.31 and 217.65. 

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.

SPY, DIA, QQQ, IWM, bull flag

XLB, XLF, XLI, XLK, XLV bull flag

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: DDD, SM, VOYA, DNOW, NFX, AIG, CERN, ICE, DVN, LNC, OKE, CXO, FMC, GNW

DDD +2.17, +17.82%

SM +3.69, +14.08%

VOYA +2.45, +9.76%

DNOW +1.38, +7.62%

NFX +3.11, +7.48%

AIG +3.96, +7.31%

CERN +4.35, +7.02%

ICE +14.09, +5.34%

DVN +1.88, +5.20%

LNC +1.99, +4.65%

OKE +1.91, +4.35%

CXO +4.72, +3.89%

FMC +1.55, +3.32%

GNW +0.76, +27.64%

Negative Reactions: QRVO, VRSK, FISV, HBI, DLPH

QRVO -6.33, -10.30%

VRSK -4.29, -5.12%

FISV -4.95, -4.53%

HBI -0.64, -2.50%

DLPH -1.27, -1.94%

After-hours: TSO, MRO, XEC, RIG, MET,

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, AVGO, EBAY, FB, LRCX, MXIM, NTAP, NTES, NVDA, PCAR, QCOM, ROST, TXN, ULTA, XLNX, AAPL, TMUS, AMZN, ADI, COST, CSCO, CTRP, EXPE, MU, ORLY, SIRI, PAYX, CBG, BA, GPS, BX, EW, DHI, URI, ZION, CINF, AMBA, HLT, AIV, SPG, X, HCN, MAC, TJX, LB, WHR, BURL, KMX, JD, GGP, TSN, BXP, ADSK, DLTR, X, CBL

Bull Flag Bounces include: HPE, MLM, BX, CERN

Horizontal Breakout Setups include: SWN, MSFT, COST, JNJ, UNH, LMT,

Horizontal Breakout include: WMB, MPC, VLO, CNC,

New Highs include: REGN, GRMN, STT, BMRN, BIIB

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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 94, bullish.

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

71 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 6

ADBE, ATVI, CTSH, CTXS, MNST, VIAB,

Moving Below 30 DMA = 5

FISV, PAYX, SBUX, SWKS, VRSK,

6-month Intermediate Term Market Trend: Up
3-day Short Term Market Trend: Neutral