SPX, DJIA, NDX Make New All-time Closing Highs as SPX, DJIA Break Resistance...

Setups to Watch for Friday

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Technical Commentary

The NDX made another new all-time closing high on Thursday while the DJIA and the SPX broke through resistance to a new all-time closing high. The RUT  led the broad indexes and bounced up to resistance in its sideways trading channel.

QQQ = New High

SPY, DIA = Breakout of Ascending Triangle Price Pattern, New High

Up Trend: XLI, XLB, XLY, XLK, XLP, XLU

Sideways: XLF. XLRE, XLV

Down Trend: XLE

Breadth strengthened as advancers led 1,968 to 1,027 on the NYSE and led 2,081 to 803 on the NASDAQ.

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

Wednesday – strengthened, advancers led, +7

Tuesday – strengthened, decliners led, +5

Monday – weakened, decliners led, +3

Friday – strengthened, advancers led, +9

IWM +1.41%, DIA +0.60%, SPY +0.58%, QQQ +0.36%,

SPY up 1.36 at 230.60 on 65.2 million shares, 8% below average volume,

VIX down -.57 at 10.88

TLT down -1.41 at 120.83…on 15.4 million shares, 68% above average volume

Oil futures were up .70 to close at 53.08 on Thursday.  

The SPY MFC green line is pointed up at 92 bullish. 

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up

SPX and NDX Highlights

SPX up 13 points at 2,307 a horizontal breakout on Thursday, with a near-term price target of 2,334.

SPX  gainers TDC, ALLE, PD, EFX, ROP, NUE, VIAB, GCI, K, HUM, WFM, DLTR, DG, GT, RF, NFX, EQT, CXO, IVZ, CHK, KSS, CMG, CMI, LUV, PRU, UAA, GPS

QQQ closes up 46 cents at 126.96, a new all-time closing high.

   

NDX point leaders: MSFT, AAPL, CSCO, COST, TSLA, CELG, WBA, CTSH, CMCSA, AMZN, SBUX, AAL, KHC, DLTR, REGN, VIAB, PCLN and EA

73 of 100 NDX stocks closed higher and one was unchanged on

Thursday.

79 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Friday:

Moving Above 30 DMA = 9

CELG, DISCA, DLTR, FISV, HOLX, MDLZ, MNST, ORLY, XRAY

Moving Below 30 DMA = 1

TXN,   

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: XLB

MU, WDC, CMCSA, KLAC, ATVI, TXN, LRCX,

V, DIS, JPM, UNH,

AMD, CFG, CF, NRG

One Day Pullback: NTES, SOXL, MXIM, TLT, EBAY, ADI,

Bull Flag Bounces include: ATI, LNG, FLEX, EA, PCAR, SQ, JPM, CCL, MSFT, CC, USB, HBAN, SWKS, DD, (14)

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Horizontal Breakout Setups include: MS, NUE, MXIM, BABA, XLY, STLD, DHI, JD, YHOO, IWM, FAS, IBM, RCL, STX, ADSK, ROST, GS, MMM, AXP, GLW, X, NVDA, CSX, GOOGL, XLNX, GD, RCL, CMA, BA, XLI, TMUS, FAST, ROST, ETFC, WFC, BAC, STI,

Horizontal Breakouts include: DIA, SPY, CLF, VIAB, COST, XLK, PG, PCLN, LUV, AMZN, MAR, AKS, MT,

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New Highs include: TSLA, VIAB, AAPL, ADBE, SYMC, SHOP, WB, CHKP, DE, MAR, XLP, AMAT, AVGO, MCD, FB,

At Support Setups include: UPS, BHI, MGM,

Support Bounce: HAL, CHK, CAT, HIG, VALE,

Break of Support: INTC, XOM, GM, HES,

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Earnings

This week:

Monday – CBOE, DO, FMC, FOXA, HAS, NOV, SALT, SYY, TSO

Tuesday – ADM, AKAM, BWLD, CAH, CHD, CNC, CSRA, DIS, EMR, GILD, ICE, MDLZ, PXD, TDG, MCHP,

Wednesday – AKAM, ALK, CTSH, ORLY, FISV, GT, JEC, WFM, CTL, PRU

Thursday – REGN, VIAB, CVS, ATVI, CERN, EXPE, NVDA, K, DNB, COTY

Friday – CBG, MHK, VTR

Earnings Reports

Positive earnings reactions

VIAB +1.82, +4.33%

K +2.95, +4.01%

Negative earnings reactions

DNB -20.59, -16.84%

COTY -1.72, -8.58%

SEE -3.08, -6.13%

After-hours reports

ATVI +3.52, +8.85%

CERN

EXPE

NVDA

2016 Q4 EPS

EPS Positive Reactions

REGN, PRU, WFM, GT, FISV, PNRA, BWLD, MCHP, CTSH, PXD, ORLY, ALK, MDLZ, CDW, TDG, CNC, NOV, EMR, CHD, TSO, ICE, CBOE, ADM, CAH, HAS, SALT, 

EPS Negative Reactions

DNB, COTY, MAS, AKAM, GILD, CSRA, ICE, JEC, KORS, FMC, GM, FOXA, NWL, DO, SYY, HBI, FEYE, GPRO, SKYW, CMG, AMZN, HIG, PSX, CME, CRUS, RL, R, FB, QRVO, PBI, D, ADP, UAA, UPS, MA, NUE, XOM, JNPR, SBUX, PYPL, GOOGL, JBLU, F, CAT, WHR, FFIV, LVS, CTXS, QCOM, MUR, FCX, STLD, 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

Technical Trading Observations

Indicators can be helpful, however you should remember that indicators are lagging and secondary to price.  If the price action is up and the indicator is still pointed down, follow the price.  “Price is king” means price is most important.

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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