IWM Leads with Support Bounce...QQQ Another All-time Closing High...

Sector Trend Strength:

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

Sideways: XLU

Down Trend:

Breadth strengthened as advancers led 1,923 to 1,075 on the NYSE and led 1,808 to 967 on the NASDAQ.

Tuesday – strengthened, advancers led, +6

Monday – weakened, decliners led, +1

Friday – strengthened, decliners led, +9

Thursday – weakened, decliners led, +5

Wednesday – strengthened, advancers led, +8 sectors

Oil futures were down 1.01 to close at 50.78 on Tuesday.  

SPY unchanged at 226.46 on 63.5 million shares, 23% below average volume,

VIX down .07 at 11.49

TLT down .08 at 121.75…on 8.4 million shares, 15% below average volume

Technical Commentary:

IWM +0.96%, QQQ +0.22%, SPY -0.00%, DIA -0.18%,

QQQ makes another all-time closing high on Tuesday. 

SPY and DIA are horizontal resistance breakout setups.  

IWM bounced in its sideways trend or horizontal bull flag near support.

ILMN leads SPX and NDX on guidance and BAC upgrade.

SPX unchanged at 2,269

SPX  gainers ILMN, BSX, ZBH, FCX, ALK, AA, REGN, CMG, QRVO, GM, DLPH, UAL, ISRG, KORS, AYI, AAL, CERN, NUE, URI, URBN, DAL, ANTM, SYK, JCI, YHOO, SWN, WYNN, SWKS, SPLS, FOSL, COO, LUV, AVGO, ROST

QQQ made another new all-time closing high at 122.60.

  

NDX point leaders: ILMN, REGN, TMUS, AVGO, CSCO, YHOO, ISRG, BIDU, AAL and AAPL

Earnings this week:

Monday – AYI, GPN, CMC

Tuesday –

Wednesday – KBH

Thursday – DAL

Friday – BAC, BLK, JPM, PNC, WFC

2016 Q4 EPS

EPS Positive Reactions

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

EPS Negative Reactions
AYI, CMC, STZ, 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: ETFC, F, SPY, FAS, DE, FISV, MS, UTX, GD, KLAC, COST, CTXS, CMA, NFLX, FTI, ADP, XLNX, MAR, INTC, PAYX, JPM, C, LNG, XLRE, HAL, EBAY, STLD, USB,

One Day Pullback: SBUX, FB, WDC, ADBE, AMZN, GOOG,

Bull Flag Bounces include: ALK, GM, AVGO, CFG, MU, CHTR, CHKP,

At Support Setups include: MMM, MSFT, ZION,

TSCO, BHI, FAST, ADI, TRV, CC, UPS, ROST, WBA, APA, STX, TMUS, ATI, EA, X, PWR, AKS, NUE,

Support Bounce: IWM, TSCO, DAL, LUV, CAR, HES,

Horizontal Breakout Setups include: SOXL, TLT, CE, MGM, RCL, BBY, TXN, DAL, LUV, CMCSA, DIA, AMAT, AAL, CSX, GS, BA, PCAR, NCLH, AKAM, STI, HBAN, KEY, RF, HIG, LRCX, MCD, ICE, NVDA, ADSK, PCLN

Horizontal Breakouts include: ATVI, CCL,

New Highs include: QQQ, AAPL, XLV, SCHW, AKAM, NTES, TSLA, SQ,

Break of Support: BHI, DISCA, 

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

59 of 100 NDX stocks closed higher and one was unchanged on Tuesday.

83 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 9

AAL, CERN, ESRX, HAS, NXPI, ORLY, SWKS, TMUS, TSCO,

Moving Below 30 DMA = 1

ENDP,

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral