SPY/SPX Short-term Support Holds Day Six, Forms Hammer on Friday...

Two of nine sectors moved higher on Friday …XLU, XLV and XLY were the strongest sectors while XLF was again the weakest sector.  Oil futures rose .05 to close at 43.75.

For the week ended September 16,

XLK +2.27%, XLU +0.98%, XLV +0.84%, XLP +0.19%, XLY +0.10%,

SPY +0.04%,

Lagging sectors XLI -0.89%, XLB -1.43%, XLF -1.75%, XLE -3.23%,

XLF turned negative YTD this week and XLV turned positive leaving eight of nine sectors YTD for the second straight week.

YTD 179

Leading Sectors: XLU +13.82%, XLE +11.82%, XLK +10.23%, XLB +7.69%, XLI +6.79%,

SPY +4.66%,

Lagging Sectors: XLP +4.56%, XLY +0.45%, XLV +0.11%, XLF -0.88%,

Breadth weakened as decliners led 1,944 to 1,091 on the NYSE and led 1,299 to 1,299 on the NASDAQ.

Friday – weakened, decliners led, +2

Thursday – strengthened, advancers led, +9

Wednesday – strengthened, decliners led, +5

Tuesday – weakened, decliners led, +0

Monday – strengthened, advancers led, +9

SPY down .80 at 213.37 after declaring a dividend of 1.082068 on 155.2 million shares, 83% above average volume

VIX down .93 at 15.37

TLT up 1.08 at 134.75…on 7.5 million shares, 48% above average volume

Technical Commentary:

IWM -0.15%, QQQ -0.30%, SPY -0.38%, DIA -0.51%,

SPY closed lower after declaring a 1.082068 dividend on and held above its short-term support 211.24 held for the sixth straight day.  SPY and DIA formed an inverted hammer on the weekly chart. IWM formed a spinning top on the weekly chart.

QQQ formed a bullish engulfing candle on its weekly chart. Leading NDX stocks on Friday included WDC, INTC, TSLA, INCY NFLX BMRN, REGN, SYMC, ALXN, AMZN and CELG.

FOMC meeting starts on Tuesday with Fed announcement on Wednesday.

INTC +1.11, +3.04% made a horizontal resistance breakout on a gap.

SINA +0.26, +0.34% rising near a horizontal breakout setup.

MU +0.03, +0.17% horizontal breakout setup.

YHOO -0.32, -0.73% 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, CHK, V, STX, JD, WMB, SE, EBAY, APA, CHTR,  HRS, AKAM, CSCO, WBA KSS, RL, NTAP, MSI, URBN, ZION, BAC, JPM, GS, SCHW, STT,

Bull Flag Bounces include: NFLX, WRK, FB, SYMC,

Horizontal Breakout Setups include: CSX, SYMC, CAVM, MU, AMAT, NVDA, PYPL, BURL, FL, VLO, MPC, MA, MS, GT, ADI, AVGO, CMCSA, EA, NTAP, QCOM, SWKS, TMUS, TXN, ETFC, XLNX, ADSK, SINA, BIDU, YHOO, AMZN,

Horizontal Breakout include: BABA, INTC, WDC,

New Highs include: ETFC, NTES, LVS, LITE, AAPL, ATVI, PYPL, GT, SWKS, PCLN,

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Short-term Movers for the week:

SPX gainers:  WYNN, TIF, GT, FMC, HPE, QRVO, BCR, ETFC, PRGO, BAX, MYL, JBHT, TMO, PPL, CCL, MNK, SCG, +4, 34

SPX losers:  RRC, MRO, SWN, HES, RIG, COG, WFC, OXY, NFL, MUR, FSLR, FTR, NFX, MCK, COP, OKE, DVN, MOS, ALK, NAVI, FBHS, COH, TSS, CMG  -4, 25

NDX gainers:  LMCA, SWKS, NTES, AAPL, PYPL, AVGO, WDC, REGN, INTC, TSLA, NVDA, ALXN, CSX, ATVI, ILMN, DISH, MYL, TMUS, AMAT, ADI, QCOM, ENDP, TXN, +4, 23

NDX losers:  AAL, QVCA, -4, 2,

YTD: 179

SPX Leaders:  CHD, NEM, SWN, OKE, SE, CHK, URBN, WYNN, RRC, EW (318, +3 > 10p 201, +1)

SPX Losers:  FSLR, CF, PRGO, SIG, RCL, HRB, GCI, DO, FOSL, DAL

NDX Leaders:  NVDA, AMAT, CHTR, LLTC, NTES, YHOO, NTAP, TXN, ULTA, QCOM, (55, +1, >10p 36, +5)

NDX Losers:  ENDP, NCLH, SRCL, QVCA, ALXN, LMCA, TRIP, VRTX, REGN, INCY

DJI Leaders:  CAT, WMT, MRK, UNH, MMM, JNJ, CSCO, VZ, IBM, PG, (20, 0, >10p 10, -1)

DJI Losers:  BA, DIS, NKE, AXP, GS, GE, HD, MCD, KO, JPM

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 29, bullish.  SPY held above short-term support all week.

34 of 100 NDX stocks closed higher on Friday.

40 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 4

ALXN, HSIC, INCY, REGN

Moving Below 30 DMA = 5

AAL, AVGO, CSCO, LVNTA, TMUS

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral