Breadth Jumps on Massive Counter-trend Bounce, SPX +136 points, NDX +416 Points...

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The SPX gapped up 20 points on the open, then pulled back and filled the opening gap before going on morning and afternoon rallies gaining 136 points to close at 3,090.23 on Monday.  Friday’s selloff on heavy volume and intra-day reversal has the attributes of a capitulation bottom.  Monday’s bounce is a counter-trend bounce.

The same uncertainties surrounding the Coronavirus still exist today as they did on Friday. 

All eleven sectors were higher on Monday, led by XLU, XLK and XLP                  

SPY up 12.83 at 309.09 on 350.9 million shares, above average volume.  Up on lower volume.

VIX down 6.69 at 33.42

AAPL, WMT, UNH led the DJIA, 30 advancers, +23

CCI, AES, SPGI led the SPX, 467 advancers

JD, TSLA, COST, GILD led the NDX, 93 advancers

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

Up: QQQ, DIA, SPY, IWM,

Down:

Breadth strengthened, on Monday as advancers led 2,478 to 540 on the NYSE and led 2,376 to 930 on the NASDAQ

The SPX MFC green line is below 20 and turned up at 14 and is short-term bullish. 

Uptrend sectors:  XLK, XLC, XLV,

Neutral sectors:  XLU, XLRE, XLP, XLY, XLI, XLF,

Down trend sectors: XLB, XLE,

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

3-month Intermediate Term Market Trend: Down a little

3-day Short Term Market Trend: Down a little

93 of 100 NDX stocks closed higher on Monday.

11 NDX stocks are above their 30 DMA:  NFLX, GILD, TMUS, BMRN, REGN, NVDA, BIIB, CSGP, INCY, JD, TSLA,

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 5

BIIB, CSGP, INCY, JD, TSLA,

Moving Below 30 DMA = 0

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