Thursday, May 24, 2018

Selloff and Rally Leads to Slightly Lower Close...IWM, DIA Bull Flag Setup...




© 2018

Stocks opened lower on Thursday, and following comments that the June Summit with No. Korea was being cancelled, sold off 24 points in the morning.  Buying momentum returned after selling exhausted around 11 am and the SPX rallied 20 points to close down 5 points for the day.

Friday is the last trading day before the three-day Memorial Holiday weekend.  Markets are closed on Monday.  

IWM and DIA are bull flag setups while SPY and QQQ are horizontal breakout setups.   

The DJIA, closed down 75 points at 24,811, led by weakness in CVX, XOM, GS, UNH, JPM and JNJ.

Three sectors were higher on Thursday, led by utilities XLU +0.82% and industrials XLI +0.49%.

SPY down .56 at 273.36 on 76.0 million shares, 3% above average volume. Down on higher volume.
VIX down .05 at 12.53
Oil down 1.16 to 70.67
TLT up .94 at 118.88 on 8.2 million shares.

GE +2.96%, NKE +1.18%, led the DJIA, 8 advancers.
FOSL +5.11%, NRG +3.86% and KSS +3.61%, led the SPX.
MELI +3.33%, ALGN +2.87%, MU +2.53%, and CELG +2.42%, led the NDX.


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

Up: IWM,
Down: QQQ, SPY, DIA,

Breadth weakened on Thursday, as advancers led 1,495 to 1,388 on the NYSE and decliners led 1,501 to 1,358 on the NASDAQ.

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

Uptrend sectorsXLE, XLK, XLRE,
Neutral sectors: XLF, XLY, XLV, XLI, XLB, XLU
Down trend sectors: XLP

Intermediate-term trending stocks:  Many of these stocks have had significant pull backs over the past two months and it is appropriate to wait for the uptrend to resume before entry… RACE, ADBE, IBKR, ETFC, MA, V, ISRG, WIX, NDAQ, WYNN, VRSN, TAL, COP, CRM, NTAP, RNG, AA, WUBA, FCAU, NVDA, SQ, ALGN, AKAM, SHOP,
BA, MU, MAR, CMA, CME, ANET, HRS, KORS,
DLTR, WB, EL, TPR,


45 of 100 NDX stocks closed higher on Thursday.

70 NDX stocks are above their 30 DMA.  SHPG, ULTA, ADP, CTXS, COST, CSX, INTU, ROST, ISRG, HAS, CDNS, INTC, BMRN, ALXN, AMZN, FB, ILMN, MSFT, NFLX, ORLY, SIRI, SNPS, EXPE, FOXA, TTWO, ATVI, TXN, AAPL, CTAS, ADBE, ALGN, JBHT, NVDA, PAYX, ADI, ADSK, BIIB, CA, EA, GOOGL, KLAC, MAR, SWKS, CERN, MCHP, FAST, XLNX, FISV, MU, MXIM, PYPL, QCOM, AMGN, ESRX, WBA, INCY, HOLX, MYL, VRTX, WDC, CTRP, IDXX, VRSK, ASML, AVGO, LRCX, WYNN, STX, PCAR, SBUX, WDAY,

NDX Stocks to Watch on Friday:
Moving Above 30 DMA = 3
PCAR, SBUX, WDAY,

Moving Below 30 DMA = 0



The 6-month intermediate and long-term trends are still up.  The three-month trend is sideways.  The ten-day trend.

3-month Intermediate Term Market Trend: Sideways
3-day Short Term Market Trend: Sideways

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