SPX Turns Lower after Brexit Voting in UK, Volatility Rises...

© 2019

After the close TXN, WHR and CMG had a negative earning’s reaction.

Upcoming:

Wed Oct 23 – 25+ SP 500 stocks report EPS

Wed Oct 30 – next FOMC Meeting Announcement

Thu Oct 31 – Brexit deadline

SPX closes at 2,996, down -0.87% from Sep 19th 3,021 high and up +4.91% from its Oct 3 low of 2,856. 

The SPX lost 10 points.  Look for the institutional short-term focus to continue to be on EPS reactions Wednesday on SPX stocks TXN, CMG, BA, CAT, LLY, GS and more.

Our current technical assessment is an Aug – Oct (2,822 – 3,027) sideways channel with Tuesday’s bearish engulfing candle alerts to a potential bounce off the resistance area of three three-month ascending triangle.  Price action is likely to continue fluctuating between 2,840 support and 3,020 resistance until a breakout occurs.

The DJIA, closed down 39 points at 26,788 led by weakness in TRV, MCD, V, MRK and BA.  Closing below 27,000 for the third day.

Five of eleven sectors were higher on Tuesday, led by XLE, XLI and XLU.

SPY down .98 at 299.01 on 49.1 million shares, below average volume.  Down on higher volume.

VIX up .46 at 14.46

Oil up .68 at 54.32

TLT up .81 at 139.34 on 6.6 million shares.
GLD up .41 at 140.20

PG, UNH, UTX led the DJIA, 17 advancers, -2

HOG, LB, CNC led the SPX, 254 advancers

BIIB, PCAR, VRTX, KHC led the NDX, 30 advancers

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

Up: IWM,  

Down: DIA, SPY, QQQ                                    

Breadth weakened on Tuesday as advancers led 1,717 to 1,214 on the NYSE and decliners led 1,609 to 1,450 on the NASDAQ

The SPX MFC green line is above 80 at 83 and is short-term bullish.  The flattening of the MFC today does flash a short-term yellow alert.  Watch for a potential pullback.

Uptrend sectors: XLRE, XLU, XLP, XLK,

Neutral sectors:  XLF, XLY, XLC, 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: Sideways

30 of 100 NDX stocks closed higher on Tuesday.

57 NDX stocks are above their 30 DMA:  KLAC, AAPL, ASML, DLTR, CTXS, ROST, CTAS, ALGN, CELG, CHTR, NVDA, PEP, XRAY, COST, LULU, ROST, SWKS, TSLA, AMAT, EXPE, ILMN, INTC, ISRG, ORLY, PAYX, AMGN, MCHP, FAST, GOOGL, NTES, PCAR, SIRI, WYNN, AAL, AMD, AVGO, GILD, INCY, VRTX, BKNG, CMCSA, ISRG, JBHT, JD, NTAP, QCOM, TMUS, UAL, WBA, FOXA, AMZN, CSX, LRCX, MXIM, BIIB, KHC, PEP,

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 3

BIIB, KHC, PEP,

Moving Below 30 DMA = 15

ADP, ATVI, CDNS, CERN, EBAY, FB, FISV, HAS, HSIC, IDXX, MSFT, NFLX, NXPI, TXN, VRSN,

Add Comments here: