SPX/SPY Mired in Eighteen Day Trading Range Before Jobs Report and Earnings Season...

Nine of ten sectors moved lower on Tuesday …XLF, XLV and XLY were the strongest sectors while XLU was the weakest sector.  Oil futures rose .54 to close at 49.19.

Breadth weakened as decliners led 2,206 to 845 on the NYSE and led 1,733 to 1,064 on the NASDAQ.

Tuesday – weakened, decliners led, +1

Monday – weakened, decliners led, +1

Friday – strengthened, advancers led, +8

Thursday – weakened, decliners led, +0

Wednesday – strengthened, advancers led, +8

SPY down 1.10 at 214.68 on 119.9 million shares, 23% above average volume

VIX up .13 at 13.70

TLT down 1.60 at 135.21…on 12.0 million shares, 45% above average volume

Technical Commentary:

QQQ -0.15%, DIA -0.46%, IWM -0.49%, SPY -0.51%,

SPY is in the midst of its third trading range since July 14. The first lasted 16 days, then 24 days and now the SPY is in a range since Sep 9 or 18 days.  The key difference is that volatility has been higher since Sep 9 and as a result the average trading range has been higher.

This Friday the Labor Department will release the September Jobs Report and next Monday October 10 is the “unofficial” kickoff of earnings season with the release of AA Q3 report after the close.

MU beat on revenues and lower than expected loss and raised guidance after the close but dropped .96 and more than -4% in after-hours trading.

 

EPS Positive Reactions

COST, RHT, FDX, ADBE

EPS Negative Reactions

MU in after hours

PAYX, 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: SCHN, IWM, BABA, ULTA, BIDU, TWLO, QCOM,

ADBE, ADSK, FL, ATVI, FOSL, GILD, CHTR, REGN, ISRG, TSLA, NUE, X, STLD, AKS,

Bull Flag Bounces include: TRIP, JD, AAPL, EXPE, URBN,

Horizontal Breakout Setups include: TRIP, EXPE, TWTR, SCHW, STT, ZION, ETFC, BAC, QQQ, NTES, MA, INTC, CTRP, ADSK, NCLH, SWKS, AMAT, AAL, PYPL, LRCX, MU, NTAP, TXN, ROST, PCAR, RL, WRK, ATI, UAL, GT, CAVM, SINA, JPM, WMB, SE, SYMC, ISRG, AKAM, FB, LMCA

Horizontal Breakout include: RCL, JD,N

New Highs include: WB, NXPI, PCLN, EA, LITE, NFLX, LVS, WDC, APA, AMZN, NVDA, STX, CSX, ILMN,

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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 60, defensive. 

38 of 100 NDX stocks closed higher on Tuesday.

55 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 2

GOOG, YHOO,

Moving Below 30 DMA = 7

AMAT, FAST, KHC, MDLZ, MXIM, NTAP, XLNX,

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral