Oil Jumps, Energy Stocks Lift SPX, Push SPY to New High Close...Tech Stocks Lift QQQ Off Support...

Eight of ten sectors moved higher on Tuesday …XLE, XLU and XLK were the strongest sectors while XLRE was the weakest sector.  Oil futures up 2.03 to close at 45.75.

Breadth strengthened as advancers led 2,216 to 859 on the NYSE and led 1,638 to 1,124 on the NASDAQ.

Tuesday – strengthened, advancers led, +8

Monday – weakened, advancers led, +6

Friday – strengthened, advancers led, +5

Thursday – weakened, advancers led on NASDAQ, +6

Wednesday – strengthened, advancers led, +6

SPY up 1.69 at 218.28 on 91.3 million shares, 5% below average volume

VIX down 1.11 at 13.37

TLT up .60 at 121.91…on 11.9 million shares, 27% above average volume

Technical Commentary:

QQQ +1.39%, SPY +0.78%, IWM +0.31%, DIA +0.30%,

DIA and IWM hit new all-time highs

SPY rose to horizontal resistance and made a new high close

SPY is a horizontal resistance breakout setup with the potential to change from a sideways trend to an uptrend

SPX up 16 points at 2,180

SPX Leaders: AAP, CHK, MUR, APA, CNC, HES, MRO, DVN, UAL, NFX, HP, OKE, EXC, BCR, OXY, KMI, SWN, CXO, NEM, ALB, PWR, IPG, NBL, ZBH, BHI, FTI, APC, PEG, HAL, NOV, RRC, HOLX, SLB, SE, XEC, QRVO, PXD, SYK, HCA, AES, XYL, WYNN, GT, PVH, WMB

VIX did confirm the SPX gain

QQQ in sideways trend bouncing off support

NDX point gainers: AMZN, MSFT, GOOG, AAPL, FB, JD, INTC, WBA, CSCO, MDLZ, NVDA and QCOM

AAP +21.43, +15.00% on positive EPS reaction.

Steel stocks paused in their 8-day rally on Tuesday, however X, MTL, NUE and STLD still managed small gains.

Airline stocks UAL, JBLU, AAL, SKYW, LUV, ALK and DAL continued to rise on Tuesday.

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.

2016 Q3 EPS, Oct - Nov

EPS Positive Reactions

AAP, JD, NVDA, KSS, M, JWN, RL, DDS, QVCA, JCI, MAR, SYY, FDC, RACE, CTSH, PCLN, MGM, LVS, UBNT, SLCA, SBUX, MCHP, FOSL, MHK, CAR, RIG, DDD, YELP, SHOP, ABC, SQ, HSIC, ZTS, DVN, NBL, ANTM, ADP, EA, VRSK, ADM, HRS, MOS, CHKP, COH, TSO, RCL, HBI, SRCL, HSY, EMN, VRSN, UBS, BIDU, CRUS, EXPE, MO, CVX, FFIV, WDC, COP, DOW, AKAM, JNPR, BA, NCR, OI, FLIR, ROL, TSS, LMT, KEY, FCX, VLO, BHI, SAVE, AKS, TMUS, MCD, PYPL, MSFT, MXIM, AXP, SNA, MAT, BK, STLD, WBA, ALK, URI, HAL, MS, USB, NFLX, HOG, UNH, GS, CE, DPZ, CMA, UAL, HAS, DAL, DRI, CSX, COST, RHT, FDX, ADBE

EPS Negative Reactions

HD, TJX, KORS, NTES, TRIP, CVS, ENDP, NWSA, ALB, IFF, EXPD MNST, ATVI, FSLR, WYNN, CS, APA, FB, UVE, AIG, CHTR, PAYC, DATA, CAVM, BABA, X, GILD, HLF, ILMN, NFX, DO, SCTY, AMZN, MCK, ABC, CAH, GT, ABBV, LM, COG, CA, AMGN, AET, LITE, XOM, CLF, ORLY, NEM, POT, AAPL, EW, CMG, LUV, CMCSA, UA, P, WHR, PNRA, JBLU, GM, MMM, NLSN, WAT, SHW, MAS, PNR, MCO, EBAY, TRV, LRCX, TSCO, INTC, ISRG, ST, JNJ, IBM, AA, FAST, ILMN, MU, PAYX, CCL

EPS Neutral Reactions

SWKS, LBTYA, CI, QCOM, FOXA, GOOGL, PSX, SKYW, BX, CA, TWTR, UPS, TSLA, MO, NXPI, STT, GD, KO, ESRX, VRTX, PCAR, AAL, NUE, XLNX, CTXS, LLTC, BAC, C, JPM, PNC

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: PCLN, AKAM, QCOM, CHKP, GILD, NVDA, NXPI, VRTX, MLM, HAS,

Bull Flag Bounces include: EXPE, MXIM, NBL, HSY,

Horizontal Breakout Setups include: MCHP, HAL, BHI, CHK, BBBY, SQ, CMCSA, COST, CSCO, DISCA, DLTR, ESRX, FOXA, MAT, MU, STX, ULTA, WDC, REGN

Horizontal Breakouts include: AAP, JD, SLB, RRC, DVN, HES, APA, MUR, PCAR, NCLH,

New Highs include: AAP, FTI, PWR, NFX, MAR, AAL, DAL, UAL, ALK, LUV, SAVE, SKYW, X, STLD, NUE, BAC, C, RF, STI, ZION, GS, MS, ETFC, SCHW, CMA, CE, CCL, CC, ADI, ADP, TMUS, WFM, JPM, WFC, USB, AKS, SCHN, CSXM RCL, REGN

Horizontal Break of Support Setups include: MDLZ, GOOGL,

Break of Support: FB, AMZN, TSLA, NEM, NTES, TRIP, ATVI, CERN,

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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 88, bullish. 

75 of 100 NDX stocks closed higher on Tuesday.

59 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 6

CTXS, EXPE, JD, MSFT, MXIM, ULTA

Moving Below 30 DMA = 2

ROST, SHPG

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up