DJI Hold Above 27,000 for Second Day as SPX Forms a Doji...

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Wednesday was day 2 of earnings season with nine SP500 companies reporting after Tuesday’s close or before Wednesday’s open.  JBHT, UAL, USB, BAC, PNC, BK, CMA opened higher while ABT, PGR opened lower.  Six of nine stocks finished the day higher.  After day 2, seventeen of twenty EPS reactions have been positive at the close of the trading day.

After the close NFLX had a positive earning’s reaction while IBM had a negative reaction.

Upcoming:

Wed Oct 30 – next FOMC Meeting Announcement

Thu Oct 31 – Brexit deadline

SPX closes at 2,989, down -1.05% from Sep 19th 3,021 high and up +4.72% from its Oct 3 low of 2,856. 

The SPX paused from Tuesday’s 29-point move closing down 6 points.  Look for the institutional short-term focus to continue to be on EPS reactions Thursday on SPX stocks NFLX, IBM, AA, CSX, HON, KEY, MS, PM, STI and URI.

Our current technical assessment is an Aug – Oct (2,822 – 3,027) sideways channel with Wednesday’s trading range forming a doji.  Price action is likely to continue fluctuating between 2,840 support and 3,020 resistance.

The DJIA, closed down 22 points at 27,002 led by weakness in UNH, CVX, XOM, MSFT and AAPL.  Closing above 27,000 for the second time after closing below for seventeen straight days.

Five of eleven sectors were higher on Wednesday, led by XLY and XLU.

SPY down .48 at 298.40 on 50.5 million shares, below average volume.  Down on higher volume.

VIX up .14 at 13.68

Oil up .06 at 52.97

TLT up .17 at 139.92 on 8.6 million shares.

GLD up .80 at 140.41

JNJ, CSCO, DIS led the DJIA, 11 advancers, -14

MCK, FOSL, ABC led the SPX, 222 advancers

JBHT, UAL, NTES, LBTYA led the NDX, 45 advancers

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

Up: IWM,

Down: DIA, SPY, QQQ,                                   

Breadth weakened on Wednesday as advancers led 1,531 to 1,393 on the NYSE and led 1,586 to 1,480 on the NASDAQ

The SPX MFC green line is below 80 and moved up to 70.  It is short-term bullish.

Uptrend sectors: XLU, XLRE, XLP, XLK,

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

Down trend sectors: XLE,

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

3-month Intermediate Term Market Trend: Sideways

3-day Short Term Market Trend: Up

45 of 100 NDX stocks closed higher on Wednesday.

70 NDX stocks are above their 30 DMA:  KLAC, AAPL, ASML, DLTR, CTXS, HAS, ROST, CTAS, ALGN, ULTA, ATVI, CELG, CHTR, NVDA, PEP, XRAY, COST, LULU, ROST, SWKS, TSLA, AMAT, EXPE, FISV, ILMN, INTC, ISRG, LRCX, MSFT, ORLY, PAYX, TXN, AMGN, MCHP, NFLX, NXPI, SNPS, ULTA, ADP, ATVI, CERN, FAST, GOOGL, IDXX, MXIM, NTES, PCAR, SIRI, WYNN, AAL, AMD, AVGO, BIDU, CDNS, GILD, INCY, VRTX, BKNG, CMCSA, CSX, FB, INTU, ISRG, JBHT, JD, NTAP, QCOM, TMUS, UAL, WBA,

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 2

AMZN, LBTYA,  

Moving Below 30 DMA = 7

ADBE, ADI, ADSK, ALXN, MELI, WDAY, WDC,

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