Buyers Back in Town as Support Bounce Occurs at 23.6% Fib Retracement...Pullback Exaggerated in Media...DRI, RHT Gain on EPS Reaction...

Setups to Watch for Wednesday

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Technical Commentary

Recently some attention seekers in the financial media have been calling the recent pullback from the SPX March 1 intraday high at 2,400 to March 27 intraday low of 2,322, down -3.28% the Trump Slump.  I suspect they are first trying to market themselves.  When you are nobody, you attract greater attention to yourself by attaching your name to a known success.

For example, number 1 Coke doesn’t do taste tests with whoever is number 2, because Coke is already number 1 and doesn’t need to attract attention to number 2.  However number 2 does taste tests against Coke to try and prove they are as good as number 1 and they hope attaching their name to number 1 will bring them more attention.

By adding the name Trump to the word slump under their byline they are probably getting better traction than excluding his name.  They also may be attempting to grind an axe by calling a -3.28% pullback a slump.  Perhaps they are jealous of the President because he is more successful they are.  Who knows?

We’re laughing at someone so desperate for attention to call an 18-day -3.28% pullback a slump.  Why?  Because, the Google definition of slump is “a sudden severe or prolonged fall in price, value or amount.”  An 18 trading day pullback which is almost four weeks is hardly sudden or prolonged.  After advancing from the November 4 low of 2,083 up 319 points to the March 1 high of 2,400 the 78 point pullback to yesterday’s low, in market context, is not severe.

In fact, in Fibonacci retracement terms this is only 23.6% retracement, which is considered a minor retracement without enough selling to achieve the more typical 38.2%, 50% or 61.8% which are more probable to lead to trend continuation than not.

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The SPX has already recovered, as of Tuesday’s close, 36 points or 1.56%.  This means as of today, the now 19-day pullback is down only 42 points or -1.77%, hardly a slump.

The media trick is exposed.

Bottom-line:  Technically speaking the SPX has been in a healthy consolidation and the intermediate and long-term trends are still up.

IWM +0.78%, DIA +0.74%, SPY +0.73%, QQQ +0.61%,

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Up Trend: XLK, XLU, XLV

Sideways: XLB, XLF, XLRE, XLI, XLY, XLP,

Down Trend: XLE

Breadth strengthened as advancers led 2,209 to 773 on the NYSE and led 1,758 to 1,095 on the NASDAQ.

Tuesday – strengthened, advancers led, +9 sectors

Monday – strengthened, advancers led, +2

Friday –weakened, decliners led, +1

Thursday – strengthened, advancers led, +4

Wednesday – strengthened, advancers led on the NYSE, +7

SPY up 1.70 at 235.32 on 93.3 million shares, 13% above average volume,

VIX down .97 at 11.53

TLT down .81 at 120.62…on 6.8 million shares 17% below average volume

Oil futures were up .59 to close at 48.44 on Tuesday.

The SPY MFC green line is flat at 51, be bullish with SPY move today above short-term support/resistance at 234.72.

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up

SPX and NDX Highlights

SPX up 17 points at 2,358.

SPX gainers DRI, RHT, CHK, NBL, MUR, NFX, HES, NAVI, UAL, MRO, URI, APA, AMG, FCX, R, SYF, XRX, PNR, PXD, CMG, SCHW, JWN, LYB, IVZ, COF, KSU, LUV, SWN, COP, AMP, GM, WRK, EMN, KSSS 

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QQQ closes up .80 at 131.64.

   

NDX percentage gainers: TSLA, WDC, CSX, ENDP, AAPL, AAL, FOXA, FAST, MAR, VIAB, QCOM, DISH, MAT, TRIP, AMZN, FB, BMRN, ADI, ULTA, EXPE, ATVI, PCLN

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70 of 100 NDX stocks closed higher on Tuesday.

54 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 5

AMZN, CTSH, DISH, DLTR, QCOM,

Moving Below 30 DMA = 4

HSIC, MXIM, NXPI, VRTX,

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: AMAT, FISV, MXIM, NVDA, PAYX, SYMC, TXN, HD, JNJ, CLX, FLEX, MMM, WIX, MNST, NRG, EBAY, XLU,

Bull Flag Bounces include: AVGO, EA, EXPE, WDC, ULTA, UNH, HAS, RCL (8)

One Day Pullback:

MACD Histogram Bullish Divergence: X, STX, BA, IBM, PANW,

Horizontal Breakout Setups include: FB, DIS, LVS, ADBE, CTRP, MCD, WDC, AAL, LUV, CF, RF, CSX, ZION, STI, YHOO, HOLX, KLAC, LRCX, BABA, PYPL, GLW, NXPI, NFLX, NTES, SWKS, SOXL, INTC, TLT, ALK, LNG, TSLA, AMD, GDXJ, DAL,

Horizontal Breakouts include: CC, HUN, AAPL, PCLN, ATVI, TSLA, UAL, IWM,

New Highs include: AAPL, MAR, FB, PCLN, CC, HUN, ATVI, WYNN, CCL,

At Support Setups include: ADP, CMCSA, V, ROST,

Support Bounce: GS, NUE, AA, CF, LUV, RF, CSX, ZION, STI, ADI, AMZN, AMBA,

Break of Support:

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Earnings

This week:

Monday – DRI, RHT

Tuesday – MKC, CCL,  

Wednesday – PAYX

Thursday – PRGO

Friday –

Earnings Reports

Positive earnings reactions

DRI +7.04, +9.31%

RHT +4.28, +5.21%

Negative earnings reactions

MKC -2.93, -2.89%

After-hours reports

MU +2.72, +10.28%

2016 Q4 EPS (since Mar 7)

EPS Positive Reactions

DRI, RHT, CCL, MU, PVH, CTAS, FDX, TIF, ADBE, ORCL, ULTA, SIG, HRB

EPS Negative Reactions

MKC, ACN, NKE, LEN, GIS, URBN,

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