Oil Rallies...Energy Leads SPX...DIA, IWM SPY Make New Closing High as QQQ Nears Horizontal Resistance...

Nine of ten sectors moved higher on Monday …XLE, XLB and XLU were the strongest sectors while XLRE was the weakest sector.  Oil futures up 2.01 to close at 48.33.

Breadth strengthened as advancers led 2,253 to 754 on the NYSE and led 1,634 to 1,122 on the NASDAQ.

Monday – strengthened, advancers led, +9

Friday – weakened, advancers led on the NASDAQ, +2

Thursday – strengthened, advancers led, +7

Wednesday – weakened, advancers led, +3

Tuesday – strengthened, advancers led, +8

SPY up 1.65 at 220.15 on 69.1 million shares, 24% below average volume

VIX down .42 at 12.43

TLT up .30 at 121.15…on 6.2 million shares, 32% below average volume

Technical Commentary:

QQQ +1.04%, SPY +0.76%, IWM +0.47%, DIA +0.47%,

IWM, SPY, DIA new all-time highs on Monday.

SPY closes above resistance after a test on Friday

SPY is a horizontal resistance breakout

SPX up 16 points at 2,198

Energy stocks lead SPX on rally in oil.

SPX Leaders: MPC, CHK, RRC, SWN, FCX, MRO, WYNN, CXO, COG, ADS, EQT, MNST, OKE, NF, ILMN, MNK, APC, FB, RIG, COTY, NBL, HES, COP, NOV, IRM, SYMC, URI, MUR, CTL, AZO, SE, MOS, XEC, PXD, WU, NRG, DOV, EOG, AAP, FOSL

VIX did confirm the SPX new closing high.

QQQ in sideways trend moving towards short-term resistance

NDX point gainers: FB, AMZN, AAPL, MSFT, GOOG, CELG, AVGO, KHC, WBA and NFLX

Steel stocks resumed their uptrend following Friday’s pause led by MTL, VALE, SCHN, ATI, CLF, STLD, NUE, AKS, MT and X.  

Airline stocks led by SKYW, UAL, LUV and HA on Monday.

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

ROST, INTU, BBY, NTAP, TGT, 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

TSN, CSCO, LOW, HD, TJX,

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: NTAP, BBY, MAR, NCLH, PCAR, BBBY,  WFM, XLNX, AXP, BA, JPM, MMM, UNH, UTX, LMT, HAS, ICE, STI, RCL, JWN, TGT, AKS, NUE, CE, PWR, BIIB, BMRN, ESRX, GILD, REGN, VRTX, DISCA, CTSH, ADSK,

Bull Flag Bounces include: CSX, NFLX, PAYX, PCLN, BA, MLM, HIG, ATI, SCHN, FTI, INCY, FOSL, SWN, AAP, SLB, DVN,

Horizontal Breakout Setups include: STX, WDC, AMZN, AAPL, ZION, PAYX, CSX, TRV, MCHP, SCHN, FTI, INCY, FOSL, SWN, AAP, SLB, DVN, TMUS, SQ, DAL, ALK, LUV, SAVE, WFC, HSY, COST, EXPE, FOXA, JD, HAL, BHI, HES, APA, AKAM, CHKP, CHTR, HIG, FB,

Horizontal Breakouts include: FCX, LNG, MXIM, CHK, MUR, RRC, CTXS, ULTA, DLTR,

New Highs include: ADP, CC, ADI, UAL, FDX, MU, LRCX, KLAC, TXN, MS, GS, SCHW, USB, C, STLD, X, SKYW, BAC, SBUX, FISV, CMCSA, NVDA, AAL, MCD, CMA, CFG, HBAN, RF, CCL, ETFC,

Horizontal Break of Support Setups include: CSCO, MDLZ, GOOGL, TSLA,

Break of Support: 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 97, bullish. 

74 of 100 NDX stocks closed higher on Monday.

65 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 5

AVGO, MAT, NFLX, ORLY, SYMC

Moving Below 30 DMA = 2

HSIC, QCOM

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up