China Willing to Negotiate, Mexico Wants Deal by June 10, Feb Willing to Lower Rates if Necessary...DJIA Above 25,000 Again...

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It’s amazing the difference a day can make.  Many observers say, “the market always goes down faster than it goes up.”  That is not true and today the SPY went more in one day than it went down over the past four days.

On Monday, SPY formed a neutral spinning top with a bullish lower shadow and positive breadth increased.  But sentiment about U.S./China trade talks, Mexico tariffs on June 10 and potential regulatory investigations into GOOGL, FB and AAPL was very negative. SPY fell to its lowest close since March 8, while QQQ, at its low on Monday, was down -11.53% from its 191.32 high on May 1.

Today, before the open, China’s Commerce Ministry said differences with the U.S. should be resolved through negotiations with mutual respect, suggesting there could be a path forward.  Mexican President said talks were going well and was optimistic that a deal could reached by June 10.  Fed Chair Powell and Chicago Fed President Evans, separately indicate the Fed is prepared to be flexible on a rate cut if necessary.

ES futures were up 22 points near the open and trended up all day and finished up 55 points on Tuesday triggering a very solid MACD bullish divergence bounce.  Potential multi-week price target on ES: 2,894 and SPY: 287.50.

The DJIA, closed up 512 points at 25,332, led by strength in GS, AAPL, BA, HD and IBM.  Closing above 25,000 after closing below for two days. 

Ten of eleven sectors were higher on Tuesday, led by technology XLK +3.34% and materials XLB +2.81%. 

SPY up 5.96 at 280.53 on 77.2 million shares, 2% below average volume. Up on lower volume.

VIX down 1.89 at 16.97

Oil up .10 at 52.95

TLT down 1.51 at 130.93 on 14.2 million shares. 

NKE +4.69%, AAPL +3.66%, led the DJIA, 28 advancers, +8

FOSL +12.34%, MAT +11.71% and DLPH +9.03%, led the SPX.

WYNN +8.98%, TSLA +8.17%, AMD +7.22% and AAL +7.06% led the NDX.

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

Up: QQQ, IWM, SPY, DIA,

Down:

Breadth strengthened on Tuesday, as advancers led 2,395 to 540 on the NYSE and led 2,325 to 774 on the NASDAQ

The SPY MFC green line is turned up at 12 and is short-term bullish. 

Uptrend sectors: XLP, XLRE, XLU, XLY, XLK,

Neutral sectors:  XLC, XLI, XLF, XLB, XLE, XLV,

Down trend sectors:

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

3-month Intermediate Term Market Trend: Sideways

3-day Short Term Market Trend: Up

97 of 100 NDX stocks closed higher on Tuesday.

34 NDX stocks are above their 30 DMA:  PAYX, CHKP, PEP, SBUX, NTES, ILMN, CERN, CTAS, WYNN, CHTR, IDXX, MNST, XRAY, TTWO, MELI, CELG, INTU, INCY, ORLY, AMD, MDLZ, WLTW, AMGN, CELG, COST, EA, HAS, HSIC, ILMN, SBUX, TMUS, VRSK, VRSN, VRTX,

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 12

AMGN, CELG, COST, EA, HAS, HSIC, ILMN, SBUX, TMUS, VRSK, VRSN, VRTX

Moving Below 30 DMA = 0

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