Stocks Pause as SPY Tests Friday's Breakout with Light Volume...Oil Rallies as Energy Leads...

Four of nine sectors moved higher on Monday …XLE, XLB and XLI were the strongest sectors while XLV was the weakest sector.  Oil futures rose .89 to close at 42.87.

Breadth weakened as advancers led 1,665 to 1,288 on the NYSE and decliners led 1,410 to 1,226 on the NASDAQ.

Monday – weakened, advancers led on NYSE, +4

Friday – strengthened, advancers led, +8

Thursday – weakened, advancers led on NYSE, +4

Wednesday – strengthened, advancers led, +6

Tuesday – weakened, decliners led, +1

SPY down .13 at 218.05 on 39.9 million shares, 51% below average volume

VIX up .11 at 11.50

TLT up .26 at 138.26…on 5.1 million shares, 41% below average volume

Technical Commentary:

DIA +0.01%, IWM -0.05%, SPY -0.06%, QQQ -0.11%,

SPY tests Friday’s breakout.  Trend still up.

If you have been stopped out, 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.

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:  PCAR, BA, PG, XLV, PCLN, NTES, EXPE, SIRI, EW, DHI, GRMN, BIIB, CBL, JNJ, VLO, MAC, BMRN, MXIM, ADI, UNH, WHR, CNC, MRK,

Bull Flag Bounces include: AIV, JD, TSN, BXP, MLM,

Horizontal Breakout Setups include: ADSK, BXP, CAT, EA, MAT, PYPL, STX, IBM, MU, LRCX, AMAT, AMBA, BX, HPE, AMZN, ULTA, ROST, BX, DLTR, BURL, LB, HLT, CBL, X, GPS, ORLY, CSCO, COST, CTRP, CINF, QCOM, EBAY, CSX, TXN, FB, STX, URI, TJX, KMX, SWN, LMT, WFC, STI, ZION, ETFC,

Horizontal Breakout include: NTAP, WMB,

New Highs include: MPC, SPY, QQQ, IWM, MSFT, TMUS, CERN, STT, MPC, NVDA, AVGO, AAPL, XLF, BAC, C, JPM, TMUS, CBG, NVDA, AVGO, XLNX, ZION,

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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.

33 of 100 NDX stocks closed higher on Monday.

75 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 4

ATVI, MNST, PAYX, VIAB

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up