Wednesday, May 23, 2018

Stocks Rally Following FOMC Minutes...IWM, DIA Bull Flag Setups...




© 2018

Stocks opened lower on Wednesday, following comments on Tuesday regarding progress on a China trade dealBuying momentum returned following the release of the FOMC minutes at 2 pm EDT and stocks finished Wednesday near their highs.    

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

The DJIA, closed up 52 points at 24,886, led by strength in BA, MCD, CAT, AAPL and V.

Six sectors were higher on Wednesday, led by utilities XLU +0.91% and real estate XLRE +0.81%.

SPY up .75 at 273.36 on 64.6 million shares, 11% below average volume. Up on higher volume.
VIX down .64 at 12.58
Oil down .30 to 71.83
TLT up .85 at 117.94 on 9.6 million shares.

INTC +1.40%, MCD +1.36%, led the DJIA, 16 advancers.
TIF +23.29%, RL +14.34% and LOW +10.43%, led the SPX.
CTRP +3.98%, NFLX +3.95%, ALGN +3.47%, and MELI +3.40%, led the NDX.


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

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

Breadth strengthened on Wednesday, as advancers led 1,495 to 1,388 on the NYSE and led 1,533 to 1,327 on the NASDAQ.

The SPY MFC green line is in the upper zone and is at 89, 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,


68 of 100 NDX stocks closed higher on Wednesday.

67 NDX stocks are above their 30 DMA.  

NDX Stocks to Watch on Thursday:
Moving Above 30 DMA = 1
STX,

Moving Below 30 DMA = 3
CMCSA, PCAR, WDAY,


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

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

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1 comment:

Scott Avery said...

A great day indeed. I had "shorted up" at the close of market Tues. And was watching
until the indices broke out of the intra day ranges to buy all those short calls back.
I left my short calls on IWM, because to me it's not a clear enough that it has reversed yet. I will wait and use the daily "flag" bounce to buy the short calls back on that one. I've noticed it behaves a little differently than the others.