SPX Gaps Lower after CAT EPS and NVDA Lowers Guidance...

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SPY, DIA, QQQ and IWM pulled back in their bull flag price pattern on Monday creating a second chance bounce setup:

• CAT EPS and NVDA lower guidance put pressure on SPX before the open Monday,
• More than 20% of SPX stocks report EPS this week including AAPL, AMZN, FB,
• FOMC announcement on Wed at 2 pm, no rate change expected,
• WHR -6.60% and CE -4.75% negative EPS reaction after-hours,
• Jobs Report for January on Friday before the open. 

  

The DJIA, closed down 208 points at 24,528, led by weakness in CAT, MMM, V, MSFT and AAPL.  

Two of eleven sectors were higher on Monday, led by materials XLRE +1.00% and staples XLP +0.43%.

SPY down 2.02 at 263.76 on 85.2 million shares, 33% below average volume. Down on lower volume.

VIX up 1.45 at 18.87 

Oil down 1.46 at 52.09

TLT down .12 at 120.541 on 6.4 million shares. 

DWDP +0.64%, JNJ +0.59%, led the DJIA, 6 advancers, -15

EL +3.05%, MO +2.40% and MLM +2.23%, led the SPX.

AAL +4.55%, MELI +3.53%, SYMC +2.31%, and WDC +1.95% led the NDX.

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

Up:

Down: IWM, SPY, DIA, QQQ,

Breadth weakened on Monday, as decliners led 1,596 to 1,299 on the NYSE and led 1,914 to 1,103 on the NASDAQ

The SPY MFC green line is in the upper zone pointed up at 87 and is short-term bullish.

Uptrend sectors:  

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

Down trend sectors:

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

3-month Intermediate Term Market Trend: Sideways

3-day Short Term Market Trend: Sideways

25 of 100 NDX stocks closed higher on Monday.

85 NDX stocks are above their 30 DMA:  DLTR, REGN, WDAY, XRAY, ROST, LULU, CELG, INCY, NFLX, AMZN, BIIB, CDNS, CTRP, EA, EBAY, FB, GILD, PCAR, PYPL, TMUS, VRTX, WYNN, XLNX, AMD, CTAS, MELI, TXN, ULTA, VRSN, ADBE, ADSK, BMRN, HAS, INTU, MCHP, ADI, AMAT, AVGO, ISRG, KLAC, LRCX, NXPI, SNPS, FAST, JBHT, MDLZ, MNST, PAYX, SWKS, WLTW, CSX, ALXN, CTSH, EXPE, GOOGL, IDXX, KHC, MSFT, MXIM, NTAP, VRSK, ALGN, ADP, CHKP, COST, CSCO, FISV, MU, SBUX, ASML, FOXA, LBTYA, BKNG, CERN, CMCSA, JD, MAR, AAL, SYMC, UAL, WDC, AAPL, BIDU, MYL, WBA,

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 3

AMGN, ATVI, NVDA,

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