Buyers Appear at Last Week's Support Zone, MACD Bullish Divergence Forms...

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The broad market SPY and DIA and several individual stocks have formed a MACD bullish divergence setup.  When a pullback makes a low, rallies and then returns to make a similar or lower low and the MACD histogram makes a higher low, the chart has a MACD bullish divergence setup.  Since 2009 it has been one of the higher probability technical patterns on SPY.

MACD Bullish Divergence Setups: SPY, DIA, FB, DIS…

                  (click image to enlarge)

The DJIA, closed up 100 points at 25,579, led by strength in BA, WMT, V, TRV and MCD.  Closing below 27,000 for the twelfth straight day.  

Seven of eleven sectors were higher on Thursday, led by staples XLP +1.50% and utilities XLU +1.29%.

SPY up .75 at 284.65 on 101.6 million shares, 86% above average volume.  Up on lower volume.

VIX down .92 at 21.18

Oil down .25 at 54.70

TLT up 1.62 at 147.31 on 23.6 million shares. 

WMT +6.11%, BA +2.37%, led the DJIA, 19 advancers, +19

A +6.10%, BF/B +3.86% and FIS +3.26% led the SPX.

NTAP +3.94%, FISV +3.94%, JD +1.79% and PYPL +1.63% led the NDX.

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

Up:  DIA, SPY,

Down: QQQ, IWM,

Breadth strengthened on Thursday, as advancers led 1,564 to 1,380 on the NYSE and decliners led 1,795 to 1,253 on the NASDAQ

The SPY MFC green line turned down at 31 and is short-term bearish. 

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

Neutral sectors:  XLC, XLV, XLI, XLF,

Down trend sectors: XLE,

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: Down

52 of 100 NDX stocks closed higher on Thursday.

18 NDX stocks are above their 30 DMA:  CTAS, SBUX, FISV, WDC, AMGN, CELG, KLAC, TTWO, VRSK, BKNG, VRTX, LRCX, NTES, NXPI, SYMC, GOOGL, JD, PEP,

NDX Stocks to Watch on Friday:

Moving Above 30 DMA = 3

GOOGL, JD, PEP,

Moving Below 30 DMA = 2

HAS, TXN,  


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