DJIA Leads Stocks Higher as QQQ Hits Another All-time Closing High...Healthcare Drops 1%...

Sector Trend Strength:

Up Trend: XLF, XLI, XLB, XLY, XLE, XLK, XLP, XLRE, XLV

Sideways: XLU

Down Trend:

Breadth strengthened as advancers led 2,061 to 942 on the NYSE and led 1,498 to 1,266 on the NASDAQ.

Wednesday – strengthened on the NYSE, advancers led, +8 sectors

Tuesday – strengthened, advancers led, +6

Monday – weakened, decliners led, +1

Friday – strengthened, decliners led, +9

Thursday – weakened, decliners led, +5

Oil futures were up 1.59 to close at 52.37 on Wednesday.  

SPY up .64 at 227.10 on 74.6 million shares, 10% below average volume,

VIX down .23 at 11.26

TLT up .41 at 122.16…on 9.4 million shares, 7% below average volume

Technical Commentary:

DIA +0.47%, SPY +0.28%, QQQ +0.27%, IWM +0.18%,

QQQ makes another all-time closing high on Wednesday. 

SPY and DIA continue to be horizontal resistance breakout setups. 

IWM moved higher in its sideways trend or horizontal bull flag towards resistance.

FSLR leads SPX.

SPX up 6 points at 2,275

SPX  gainers FSLR, RIG, AES, ALB, NRG, AA, COP, APC, MRK, SWN, DOV, SRCL, EVHC, CERN, MCHP, FTI, CRM, ISRG, A, PH, MOS, GWW, EMN, PNC, LH, ATVI, WBA, OKE, VRSN, AAP, FCX, NOV, MDLZ, CSRA, FAST, ALK, STT, CNP, UAL

QQQ made another new all-time closing high at 122.93.

  

NDX point leaders: FB, MSFT, AAPL, CMCSA, INTC, WBA, MDLZ, AMZN, GOOG, KHC and QCOM

Earnings this week:

Monday – AYI, GPN, CMC

Tuesday –

Wednesday – KBH

Thursday – DAL

Friday – BAC, BLK, JPM, PNC, WFC

Earnings Reports

KBH +0.40, +2.41% after-hours on a positive earnings reaction.

2016 Q4 EPS

EPS Positive Reactions

CUDA, GPN, MU, CAG, NKE, KMX, CCL, JBL

EPS Negative Reactions

AYI, CMC, STZ, SCHN, RHT, BBBY, FINL, AGN, FDX, GIS, ADBE

Trade with the trend of the chart you are trading and continue to move your profit protection stops.  Continue to follow your rules.

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

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.

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: MS, ADP, SBUX, GOOG, TSLA, SQ, F, FAS, DE, FISV, UTX, GD, COST, CMA, NFLX, XLNX, PAYX, JPM, C, LNG, HAL, EBAY, STLD, USB, XLRE,

One Day Pullback: XLV, AVGO, TMUS,

Bull Flag Bounces include: FB, ADBE, AMZN, ETFC, DE, KLAC, CTXS, FTI, MAR, INTC, JPM, STLD,

At Support Setups include: MMM, MSFT, ZION, ICE, ATI, EA, X, PWR,

Support Bounce: FAST, WBA, IWM, HES, BHI, DISCA, ADI, TRV, CC, UPS, APA,

Horizontal Breakout Setups include: SPY, WDC, SOXL, FSLR, VALE, FAST, CFG, MU, DAL, LUV, CAR, TSCO, TLT, CE, MGM, BBY, TXN, DIA, AMAT, AAL, ATVI, GS, BA, AKAM, STI, HBAN, KEY, RF, HIG, LRCX, MCD, NVDA, ADSK, PCLN, ADI, CC, ROST, WBA, APA, MT, MTL, AKS, NUE

Horizontal Breakouts include: ALK, GM, CLF, CHTR, CE, RCL, NCLH, CMCSA, CSX, PCAR,

New Highs include: ALK, GM, CCL, QQQ, AAPL, CHKP, CHTR, FCAU, SCHW, AKAM, NTES,

Break of Support: STX, 

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The SPY MFC green line is in the upper zone at 91 bullish. 

61 of 100 NDX stocks closed higher and one was unchanged on Wednesday.

81 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 1

VRSK,

Moving Below 30 DMA = 3

BIIB, MYL, SHPG

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral