Bull Flag Bounce IWM, SPY, XLB, XLE, NVDA, CCL, MUR,

Sector Trend Strength:

Up Trend: XLF, XLI, XLB, XLY, XLE

Sideways: XLK, XLV, XLRE

Down Trend: XLP, XLU

Breadth strengthened as advancers led 2,150 to 857 on the NYSE and led 2,108 to 661 on the NASDAQ.

Monday – strengthened, advancers led, +8

Friday – strengthened, advancers led, +7

Thursday – weakened slightly, decliners led, +5

Wednesday – weakened, decliners led, +4

Tuesday – strengthened, decliners led, +9

Oil futures were down .73 to close at 50.95.

SPY up 1.32 at 221.00 on 67.8 million shares, 26% below average volume

VIX down 1.98 at 12.14

TLT down .13 at 119.47…on 12.1 million shares, 12% above average volume

Technical Commentary:

IWM +1.72%, QQQ +0.78%, SPY +0.60%, DIA +0.25%,

IWM, DIA and SPY continue to remain above their horizontal resistance breakout level

SPY, IWM, XLY, XLB, XLE, NVDA, CCL and MUR bounce in their bull flag price patterns. 

Steel stocks CLF, AKS, X, MT, SCHN, STLD, NUE and VALE move to new highs in their uptrend.

SPX up 12 points at 2,204

SPX Leaders: AA, FSLR, RRC, SWN, VLO, KORS, URBN, RIG, PVH, TSO, COG, NRG, FOSL, VWA, CTXS, NVDA, QRVO, PCAR, SYMC, CRM, CHK, COH, GCI, NUE, TRIP, OKE HST, DISCA, TDC, PBI, PFG, FCX, BAC, MAS, HPQ, NKE, TEL, GPS, MHK, AMZN, BBBY, BBY

QQQ is in sideways trend and bounced up from Friday’s spinning top near its intermediate-term support.   

NDX point gainers: AMZN, MSFT, FB, GOOG, NVDA, CSCO, PCLN, ADBE, CHTR and INTC

Follow your rules and look for potential re-entry if you were stopped out of any profitable trades.

Continue to move up stops on short term bullish trades that could pull back.  All according to your profit protection rules.  If you moved stops you may have been stopped out today.

Remember breakouts typically test about 70% of the time.

Technical analysis based trades should be closed before earnings.

Trade what you see, not…

Stocks below support should generally be traded bearishly until a reversal pattern forms.

2016 Q3 EPS

EPS Positive Reactions

FIVE, BIG, THO, CTRP, DE, VEEV, GME, BURL, SINA, DLTR, WB, ADI, CPB, HRL, JEC, SIG, MRVL, ROST, INTU, BBY, NTAP, TGT, AAP, JD, NVDA, KSS, M, JWN, RL, DDS, QVCA, JCI,

EPS Negative Reactions

WDAY, AMBA, SWHC, ULTA, ADSK, URBN, PDCO, MDT, TSN, GPS, CSCO, LOW, HD, TJX,

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: KLAC, NTAP, DLTR, FOSL, MUR, ADP, TGT, MU, BURL, FISV, PAYX, DAL, AAP, AAL, UAL, SKYW, PWR, SBUX, TXN, WB, JD, AAPL, MMM, UTX, CHTR, UNH, CMCSA,

Bull Flag Bounces include: CCL, NCLH, RCL, MCD, C, BAC, JWN, LRCX, FCX, BBY, TECK, APA, LNG, ADI, EXPE,

Horizontal Breakout Setups include: SCHN, LUV, CE, MGM, BAC, C, LNG, STX, XLNX, ICE, LMT, ESRX, BBBY, STI, HIG, ATI, INCY, COST, NFLX, FB, PCAR,

Horizontal Breakouts include: JPM, CTXS,

New Highs include: AKS, STLD, NUE, X, CHK, FTI, SQ, MAR, JPM, BAC, GS, HBAN, ZION, CFG, MS, ETFC, USB, CMA, RF, SCHW, TRV, FDX, UPS, CSX, BHI, HES, CE, CC, HAL, ALK, SAVE, WDC, BA, 

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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 89, bullish. 

74 of 100 NDX stocks closed higher and one was unchanged on Monday.

48 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 10

ALXN, CA, CHKP, CTXS, DISCA, DISH, MSFT, PCLN, SHPG, VRSK,

Moving Below 30 DMA = 2

CTRP, NFLX,

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up