Stocks Drop Following China Tariffs, SPX, DJIA Return to Feb Support...Late Rally Pares Lossess...

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Following news of China tariffs on 128 U.S. products, futures moved lower overnight and stock indexes opened lower Monday morning and continued to fall until about 2 pm ET when a late rally lifted the indexes off their lows.  The NDX -2.89% was the weakest of the broad indexes as all 100 stocks fell led by weakness in INTC, AMZN, TSLA and NFLX.    

The DJIA, closed down 458 points at 23.644, led by weakness in MMM, BA, HD, GS, TR, JNJ, CAT, WMT, IBM and INTC. (-297 points) 

All ten sectors were lower on Monday, led by utilities XLU -0.53% and real estate XLRE -1.22%.

SPY down 5.68 at 257.47 on 186.2 million shares, 65% above average volume. Down on higher volume.

VIX up 3.65 at 23.62

Oil down 2.06 to 62.85

TLT down .02 at 121.88 on 12.0 million shares.

UNH +1.50%, MCD +0.86% led the DJIA, 2 advancers.

HUM +4.42%, UNH +1.50% and SCG +1.30%, led the SPX.

SHPG -0.13%, ADP -0.16% and DLTR -0.53% led the NDX.

Intermediate and long term up trend intact.  3-day short term trend is down.

Up:

Down: SPY, DIA, IWM, QQQ

Breadth weakened on Monday, as decliners led 2,376 to 569 on the NYSE and led 2,359 to 610 on the NASDAQ.

The SPY MFC green line is pointed down at 21, short-term bearish. 

Uptrend sectors:  XLRE,

Neutral sectors: XLY, XLF, XLV, XLI, XLB, XLE, XLU, XLK

Down trend sectors: XLP,

Intermediate-term trending stocks:  Many of these stocks have had significant pull backs over the past month and it is appropriate to wait for the uptrend to resume before considering entry… ADBE, MU, SQ, RNG, IBKR, SHOP, BA, NVDA, RACE, VRSN, ATVI, WB, V, ANET, ISRG, TAL, EA, EBAY, LYV, CAT, MAR, ALGN, CCL, RCL, TRU, WYN, PYPL, A, AABA, BABA, FCAU,  FB, CBOE, TTWO, WYNN, AA, WUBA, EDU, CC,

0 of 100 NDX stocks closed higher on Monday.

3 NDX stocks are above their 30 DMA.  STX, WYNN, SHPG,

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 13

ADBE, ADI, BKNG, COST, EXPE, HSIC, INTC, INTU, ORLY, REGN, ROST, SBUX, VRSK,

The intermediate and long-term trends are still up.  The three-month trend is sideways.  The eight-day trend is down.

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Down

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