SPX Breaks Out of Horizontal Bull Flag as Volatility Continues to Fall, JPM Earnings...

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The SPX broke out of its horizontal bull flag of the past four days on a day with a wide array of global and domestic macro-announcements:  

• China announces will stimulate economy by reducing taxes.
• JPM sales & profits miss expectations, stock recovers from lower open and finishes higher.
• US PPI -0.02% lower than forecast of unchanged.
• KC Fed President Esther George and Dallas Fed President Rob Kaplan make dovish comments regarding interest rates.
• UK Parliament vote rejects May’s Brexit plan.

The DJIA, closed up 155 points at 24,065, led by strength in UNH, AAPL, MSFT, BA and NKE.  

Nine of eleven sectors were higher on Tuesday, led by healthcare XLV +1.80% and communication services XLC +1.66%.

SPY up 2.95 at 260.35 on 85.2 million shares, 39% below average volume. Up on higher volume.

VIX down .47 at 18.60 

Oil up 1.21 at 51.99

TLT down .44 at 120.04 on 8.9 million shares. 

UNH +3.55%, MSFT +2.90%, led the DJIA, 23 advancers, +14

FRC +11.84%, EW +8.43% and NKTR +7.23%, led the SPX.

INCY +7.10%, NFLX +6.52%, ALXN +3.86%, and AMZN +3.55% led the NDX.

Long term up trend intact.  3-day short term trend is up.

Up: QQQ, SPY, IWM, DIA

Down:

Breadth strengthened on Tuesday, as advancers led 1,853 to 1,034 on the NYSE and led 2,073 to 948 on the NASDAQ

The SPY MFC green line is pointed up at 55 and is short-term bullish.

Uptrend sectors:  

Neutral sectors:  XLU, XLRE, XLB, XLY, XLC, XLV, XLI, XLK, XLP,

Down trend sectors: XLF, XLE,

The 6-month intermediate trend is down.  The ten-day trend is up.

3-month Intermediate Term Market Trend: Down

3-day Short Term Market Trend: Up

83 of 100 NDX stocks closed higher on Tuesday.

81 NDX stocks are above their 30 DMA:  DLTR, REGN, WDAY, XRAY, ROST, LULU, CELG, INCY, NFLX, AMGN, AMZN, BIIB, CDNS, CTRP, EA, EBAY, FB, GILD, INTC, JD, PCAR, PYPL, TMUS, VRTX, WYNN, XLNX, AMD, CTAS, MELI, NTES, TXN, ULTA, VRSN, ADBE, ADSK, BMRN, HAS, INTU, MCHP, TTWO, ADI, AMAT, AVGO, FOXA, ISRG, KLAC, LRCX, NXPI, SNPS, CERN, CTXS, FAST, JBHT, MDLZ, MNST, NVDA, PAYX, SWKS, WLTW, CSX, MYL,

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 20

ALXN, ASML, CHKP, CMCSA, COST, CTSH, EXPE, FISV, GOOGL, HSIC, IDXX, KHC, MAR, MSFT, MXIM, MYL, NTAP, ORLY, TSLA, VRSK,

Moving Below 30 DMA = 2

MU, QCOM,

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