SPY, DIA, IWM Give Back Monday's Gain and Hold Support...QQQ Above Friday's Close...

All nine sectors moved lower and on Tuesday reversing Monday’s bounce…XLK, XLP and XLV were the strongest sectors while XLE was the weakest sector.  Oil futures fell 1.09 to close at 44.97.

Breadth weakened as decliners led 2,754 to 339 on the NYSE and led 2,324 to 521 on the NASDAQ.

Tuesday – weakened, decliners led, +0

Monday – strengthened, advancers led, +9

Friday – weakened, decliners led, +0

Thursday – weakened, decliners led, +3

Wednesday – strengthened, advancers led, +5

SPY down 3.11 at 213.23 on 182.8 million shares, 148% above average volume

VIX up 2.69 at 17.85

TLT down 1.54 at 134.05…on 15.6 million shares, 124% above average volume

Technical Commentary:

QQQ -0.89%, DIA -1.36%, SPY -1.44%, IWM -1.92%,

SPY gave back Monday’s gain closing near Friday’s low.  SPY sold off to Monday’s low where buyers stepped in again on Tuesday.  Short-term support 212.31.

QQQ was the leading broad market ETF on Tuesday closing $1.01 above Friday’s close.  Leading NDX stocks included LMCA, PYPL, AAPL, NTES and AVGO.

Airline stocks UAL ALK and AAL are forming up trending potential bull flag patterns.

FB -1.48, -1.15% forming a bull flag pattern.

MU -0.40, -2.33% forming a bull flag pattern.

JD +0.03, +0.11% forming a bull flag pattern.

STX -0.41, -1.12% forming a bull flag pattern.

WMB -0.67, -2.20% forming a bull flag pattern.

YHOO -0.42, -0.97% forming a bull flag pattern.

BABA -0.52, -0.52% forming a bull flag pattern.

CHK -0.67, -8.32% forming a bull flag pattern.

BURL -1.20, -1.44% forming a bull flag pattern.

BIDU -2.23, -1.21% forming a bull flag pattern.

INTC -0.47, -1.30% forming a bull flag pattern.

  

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: UAL, ALK, AAL, CHK, V, STX, FB, MU, BABA, BIDU, SINA, SYMC, EBAY, ADSK, YHOO, INTC, JD, WMB, WRK, BAC, BURL, SCHW, JPM, GS, CHTR, CAVM, KMI, HRS, AMAT, NFLX, XLNX, AKAM, WDC, CSCO, URBN, KSS, WBA SWN, VLO, RL, FL,

Bull Flag Bounces include: SWKS, PYPL,

Horizontal Breakout Setups include: ETFC, PYPL, VLO, MPC, ATVI, MA, MS, ZION,

LVNTA, GT, V, STT, NTAP,

Horizontal Breakout include: PYPL,

New Highs include: ETFC, NTES, 

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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 at 47, defensive. 

11 of 100 NDX stocks closed higher on Tuesday.

26 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 1

AAPL,

Moving Below 30 DMA = 15

AKAM, AMGN, AMZN, BMRN, CSCO, DISH, EXPE, KHC, LRCX, MDLZ, NFLX, NVDA, QCOM, VRSK, XLNX

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Down