SPX Channel Grind Continues for 19th Day...

Three of nine sectors moved higher on Wednesday …XLU, XLP and XLF were the strongest sectors while XLE was the weakest sector.  Oil futures eased down 1.40 to close at 44.86.  Oil is forming a potential bull flag.

Breadth weakened as decliners led 1,871 to 1,152 on the NYSE and led 1,814 to 1,045 on the NASDAQ.

Wednesday – weakened, decliners led, +3

Tuesday – weakened, advancers led on the NASDAQ, +1

Monday – strengthened, advancers led, +9

Friday – weakened, decliners led, +3

Thursday – strengthened, advancers led, +4

SPY down .62 at 217.38 on 85.2 million shares, 40% above average volume

VIX up .30 at 13.42

TLT up .20 at 139.87…on 7.3 million shares, 18% above average volume

Technical Commentary:

QQQ -0.10%, SPY -0.28%, DIA -0.31%, IWM -0.56%,

Since last Thursday, XLF has been the leading sector.  Based on Yellen’s and Fischer’s comments last Friday in Jackson Hole, many have concluded that the Fed may raise rates is September.  Rate hikes are perceived as positive for financial stocks.

Last May, many expected the Fed to raise rates in June and when the June Jobs Report missed forecasts significantly, financial stocks sold off and moved lower for several trading days.

Many believe that Friday’s Job Report for August will give them the clue to whether the Fed actually raise rates in September.  Watch for the market reaction to Friday’s jobs report and trade according to what you see…trend, support and resistance and momentum.

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: HRL, ADSK, MU, IWM, WMB, URBN, JD, TIF, LB, KSS, ROST, AAPL, KMI, GPRO, RL, HLT, EA, MSFT, NVDA, WDC, QQQ, PCLN,

Bull Flag Bounces include: TWTR, BURL,

Horizontal Breakout Setups include: CCL, MPC, IWM, SPY, PCAR, CTRP, ATI, VLO, STX, PAYX, NFLX, AAL, MAT, HPE, CBG, AVGO, KMX, CHTR,

Horizontal Breakout include: INTC,

New Highs include: CBL, SWKS, ADBE, SYMC, TSN, WFC, GS, FAS, XLF, BAC, ZION, XLNX, JPM, AMBA, MS, C, PCAR, STT, CHK, WRK, NTAP, AVGO, AMAT, URI, ETFC,

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

44 of 100 NDX stocks closed higher and two were unchanged on Wednesday.

53 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 3

CHKP, LBTYA, SBAC

Moving Below 30 DMA = 6

ADI, BIIB, CA, CERN, GOOG, MAR

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral