Friday, February 21, 2020

Tech Leads Drop in SPX as Coronavirus Concerns Continue, Day 2 Bull Flag Forming...



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The SPX and other indexes fell for a second day on Friday, forming the beginning of a potential bull flag price pattern.

Tech stocks AMD, NVDA, KLAC, LRCX, MU, AMAT, NXPI, NTAP, MSFT, WDC, CTXS, QCOM fell on above average volume on Friday leading the NDX lower.

Three of eleven sectors were higher on Friday, led by XLRE, XLP and XLV.       

SPY down 3.47 at 333.48 on 113.7 million shares, above average volume.  Down on higher volume.
VIX up 1.52 at 17.08

UTX, JNJ, TRV led the DJIA, 9 advancers, -0
DE, MOS, PKG led the SPX, 131 advancers
BMRN, GILD, EBAY, REGN led the NDX, 14 advancers


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

Up:
Down: DIA, IWM, SPY, QQQ,

Breadth weakened on Friday as decliners led 2,049 to 879 on the NYSE and led 2,205 to 991 on the NASDAQ

The SPX MFC green line is above 80 and is pointed down at 88 and is counter-trend defensive

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

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

3-month Intermediate Term Market Trend: Up
3-day Short Term Market TrendDown

14 of 100 NDX stocks closed higher on Friday.

58 NDX stocks are above their 30 DMA:  MSFT, ADBE, ADSK, LULU, MNST, VRSK, GOOGL, TSLA, ULTA, CSX, PYPL, CTAS, CDNS, INTU, XEL, EXC, NFLX, INTC, ANSS, CSGP, SPLK, VRTX, PAYX, COST, CHKP, PEP, AMZN, MDLZ, CHTR, ADP, CTSH, GILD, JD, LRCX, NTES, AMAT, AMD, ASML, CERN, EBAY, FAST, NVDA, TMUS, BIIB, BMRN, REGN, ROST, SGEN, ATVI, SIRI, ADI, ISRG, CMCSA, EXPE, MELI, INCY, DLTR, LBTYA,


NDX Stocks to Watch on Monday:
Moving Above 30 DMA = 0


Moving Below 30 DMA = 15
AAL, AAPL, ALGN, BKNG, CDW, FISV, MAR, MCHP, MU, MXIM, NXPI, SNPS, TXN, WDAY, WDC,

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4 comments:

jeff said...

it is not a bull flag!

DomFrand said...

Bullish falling wedge to 3320, many falling wedges all over the charts. Should rally in a Wave 3 Monday or Tues into end of week to make new ATH over 3400. Reason could be maybe they have a handle on the CoronaVirus with a cure coming or something positive to that effect.

Dave Johnson said...

Jeff, it sounds like based on your definition, you are right. DJ

Dave Johnson said...

Dom...the SPX/SPY doesn't look like a falling wedge to me. I see a two day pullback testing the Feb 6 breakout of the Jan 22 high. We don't trade labels, just price action. So in the end a trader can label what they see whatever they would like and then trade their signals according to their rules and that works great. Thank you for sharing...DJ