QQQ Makes New High as SPX Continues Pause...Bull Flags Forming...

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

Sideways: XLU, XLF

Down Trend: XLE

Breadth weakened as decliners led 1,558 to 1,440 on the NYSE and led 1,719 to 1,066 on the NASDAQ.

Friday – weakened, decliners led, +2 sectors

Thursday – weakened, decliners led, +6

Wednesday – weakened slightly, advancers led, +7

Tuesday – strengthened, advancers led, +8

Monday – weakened, advancers led on the NYSE, +4

Oil futures were down .51 to close at 53.20 on Friday.  

SPY down .36 at 228.97 on 59.7 million shares, below average volume,

VIX down .05 at 10.58

TLT up .43 at 119.63…on 6.4 million shares, below average volume

Technical Commentary

QQQ +0.16%, DIA -0.04%, SPY -0.16%, IWM -0.34%,

The Dow Jones Industrial Average closed at 20,93.77, above 20,000 for the third time.  The NDX made another new all-time closing high on Friday while the SPX paused for the second day beginning the formation of a bull flag.

The VIX closed at 10.58, a new 52-week closing low.

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SPX down 3 points at 2,294 pausing on Friday after making a new all-time closing high on Wednesday.

QQQ makes a new closing high up .24 at 125.80

   

NDX point leaders: MSFT, AMGN, INTC, CELG, NFLX, CSCO, NVDA, AMAT, CMCSA and PCLN

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Earnings

This week:

Monday – HAL, MCD, ZION

Tuesday – AA, AKS, ATI, BABA, CA, DD, GLW, ISRG, JNJ, KMB, LMT, MMM, STLD, STX, TRV, TXN, VZ,

Wednesday – BA, CTXS, EBAY, FCX, FFIV, HBAN, HES, LRCX, LVS, MUR, NSC, QCOM, STT, T, URI, UTX, VRTX, WDC, XLNX

Thursday – BHI, BIIB, CAT, CELG, F, FCAU, GOOGL, INTC, JBLU, JNPR, KLAC, LUV, MSFT, MXIM, PYPL, RCL, SBUX, VMW, WHR, WYNN

Friday –

Earnings Reports

Positive earnings reactions

MXIM +2.74, +6.53%

GD +7.84, +4.42%

VMW +2.94, +3.49%

KLAC +2.95, +3.50%

INTC +0.42, +1.12%

MSFT +1.51, +2.35%

Negative earnings reactions

JBLU -.45, -6.87%

SBUX -2.85, -5.01%

GOOGL -2.34, -1.39%

JNPR -1.05, -3.79%

PYPL -1.23, -2.96%

2016 Q4 EPS

EPS Positive Reactions

MSFT, KLAC, INTC, GD, ETFC, RCL, LUV, CMCSA, URI, RCL, LUV, EBAY, STX, LOGI, ROK, BA, HBAN, ISRG, NSC, ATI, GLW, RMD, DHI, DD, MB, BABA, CA, YHOO, SWKS, KSU, PG, CFG, COL, IBM, CHKP, NFLX, UNP, FAST, WFC, SNX, MSM, CUDA, GPN, MU, CAG, NKE, KMX, CCL, JBL

EPS Negative Reactions

WHR, FFIV, LVS, CTXS, QCOM, MUR, RCX, WDCSTLD, CA, FCX, HES, STT, AKS, VZ, JNJ, LMT, MMM, TRV, HAL, MCD, GE, NTRS, CSX, C, CMA, MS, UNH, AYI, CMC, STZ, SCHN, RHT, BBBY, FINL, AGN, FDX, GIS, ADBE

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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.

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: WDC, ADBE, CF, ADSK, PAYX, WB, PCAR, IWM, JD, YHOO, PWR, SQ, SYMC, SWKS, TSLA, FAST, MT, ATI, DISCA, INTC, GM,

One Day Pullback: CHTR, BABA, LUV, ALK, LNG, BA, TMUS, FB, CFG, HBAN, AMZN, TXN, NCLH, CCL, GOOGL,

Bull Flag Bounces include: ADI, LRCX, AMAT, NTES, MCD,

At Support Setups include: SBUX, AKS, CTXS, FISV, TRV, ADP, ROST, CLF, UTX, XLNX, AAL, COST,

Support Bounce: TLT, MMM, GD, NUE,

Horizontal Breakout Setups include: NFLX, CHKP, MCD, STLD, X, NTES, MS, WFC, ZION, KEY, BAC, FAS, JPM, RF, ICE, CMA, DAL, CHK, SHOP, MAR, APA, FCAU, MGM, HIG, GS, FTI, C, BHI, NVDA,

Horizontal Breakouts include: MSFT, MXIM, GD, ETFC, ADI, LRCX, AMAT, KLAC, SOXL, MU, ATVI, EA, UPS, PCLN,

New Highs include: PCLN, EBAY, STX, PNC, USB, QQQ, HAL, AVGO, AAPL, NRG, VIAB, CMCSA, DE, ATI, CF, VALE, DIA, SPY, STI, SCHW, CSX, RCL,

Break of Support: HES, SBUX, 

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The SPY MFC green line is in the upper zone at 90 bullish. 

38 of 100 NDX stocks closed higher on Thursday.

67 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 4

ALXN, BMRN, HAS, NXPI,

Moving Below 30 DMA = 7

AAL, COST, MDLZ, PAYX, PYPL, SBAC, SBUX

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up