Market Falls After Senate Hearing on Coronavirus Ends...

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Markets sold off Tuesday afternoon following completion of a Senate hearing on the Covid-19 pandemic where Dr. Fauci warned the Senate of the risks of opening areas of the economy too fast.

NDX -186.48, +2.01%, opened higher and closed lower and SPX -60.20, -2.05%, also opened higher and closed lower, both forming a bearish engulfing pattern.  Both are a move below the low of the previous day, counter trend pullback entry signal.

All eleven sectors were lower on Tuesday, led by XLP, XLU and XLV

SPY down 5.83 at 286.67 on 95.1 million shares, below average volume, down on higher volume.

VIX up 5.47 at 33.04

WMT, CSCO, DOW led the DJIA, 1 advancer, -11

OKE, MRO, AMCR ABBV led the SPX, 43 advancers

NTES, JD, SGEN, ILMN led the NDX, 6 advancers

The two-year trend term is up.  The one-year trend is sideways.

A seven-week uptrend has emerged following a higher low W pattern reversal in March. However, the trend’s upward momentum has slowed significantly over the past three weeks and with today’s sharp pullback may be signaling a shift to sideways.

Up:

Down: DIA, SPY, QQQ, IWM

Breadth weakened on Tuesday as decliners led 2,261 to 678 on the NYSE and led 2,367 to 936 on the NASDAQ

The SPX MFC green line turned down at 88 and is counter-trend defensive.  Price action is day one of a counter-trend pullback.

Uptrend sectors:  XLV, XLK, XLP, XLY, XLC, XLB,

Neutral sectors:  XLE, XLU, XLRE, XLI, XLF,

Down trend sectors:

The 6-month intermediate trend is down a little.  The ten-day trend is sideways.

3-month Intermediate Term Market Trend: Sideways

3-day Short Term Market Trend: Sideways

6 of 100 NDX stocks closed higher on Tuesday.

81 NDX stocks are above their 30 DMA:  SGEN, AMZN, CDNS, NFLX, REGN, TTWO, VRTX, INCY, AMGN, ATVI, CHKP, CSCO, EA, ILMN, INTC, KHC, VRSN, ANSS, AVGO, CHTR, COST, CSX, IDXX, ISRG, KLAC, LULU, MSFT, MXIM, NVDA, ORLY, PCAR, PEP, SNPS, SWKS, TXN, ADI, FB, QCOM, SBUX, AAPL, ADP, ADSK, CTSH, EBAY, FAST, GOOGL, INTU, LBTYA, MCHP, MELI, MNST, PYPL, SPLK, ULTA, WDAY, ADBE, ALGN, TSLA, BMRN, VRSK, CTAS, EXPE, FISV, NXPI, CPRT, SIRI, TCOM, CTXS, AMD, ZM, AMAT, JD, MU, NTAP, NTES, BIIB, FOXA, TMUS, EXC, LRCX, ALXN,

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 10

BKNG, CDW, CERN, DLTR, GILD, MAR, PAYX, ROST, WDC, XLNX,

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