QQQ, IWM Bull Flags...Pullback Day Two 50% Fib Retracement...Oil, Bonds Rise...CCL Lower...

Just one of ten sectors moved higher on Monday …XLRE, XLU and XLI were the strongest sectors while XLF was again the weakest sector.  Oil futures rose 1.03 to close at 45.62.

Breadth weakened as decliners led 2,205 to 855 on the NYSE and led 2,155 to 679 on the NASDAQ.

Monday – strengthened, advancers led, +1

Friday – weakened, decliners led, +1

Thursday – weakened slightly, advancers led, +10

Wednesday – strengthened, advancers led, +10

Tuesday – weakened, decliners led, +5

SPY down 1.75 at 214.24 on 89.8 million shares, 1% above average volume

VIX up 2.21 at 14.50

TLT up .87 at 137.69…on 8.6 million shares, 16% above average volume

Technical Commentary:

SPY -0.81%, QQQ -0.84%, DIA -0.92%, IWM -1.27%,

SPY, QQQ and IWM pulled back for the second straight on Monday.  The SPY pullback was a 50% retracement from the low on September 12.  QQQ and IWM are in bull flag patterns.  The intermediate trend is still up.

TWTR +0.75, +3.32% continued higher on Monday.

Leading NDX stocks on Monday included STX, WDC, TSLA, PYPL and TSCO.

CCL -0.79, -1.67% opened higher and reversed lower after reporting earnings before the open Monday.  RCL and NCLH moved lower in reation.

EPS Positive Reactions

RHT, FDX, ADBE

EPS Negative Reactions

CCL

  

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: QQQ, IWM, AMZN, NVDA, BIDU, MA, ADSK, PCLN, ISRG, LMCA, ATVI, INTC, PYPL, UAL, CHK, URBN, BAC, BABA, NTES, CSX, AAPL, GT, AMAT, SWKS, LVS, ZION, RL, ADI, CAVM, DVA, ETFC, FOSL, SYMC, APA, GILD, QCOM, MU, UAL,

Bull Flag Bounces include:

Horizontal Breakout Setups include: X, NUE, STLD, ATI, SCHN, EBAY, JD, WBA, EA, FB, NTAP, TXN, ROST,  CHTR, REGN, CTRP, ULTA, BURL, FL, SINA, WRK, SCHW, JPM, WMB, SE, STT, RCL,

Horizontal Breakout include: FL, AKS,

New Highs include: STX, CSX, LITE, WDC,

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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 up at 56, bullish. 

15 of 100 NDX stocks closed higher on Monday.

43 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 11

ADI, AMAT, CELG, CMCSA, CSCO, CTRP, HSIC, KHC, QCOM, SWKS, WBA 

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Down