Tuesday, May 5, 2020

SPX Bull Flag Bounce...Momentum Pauses after Fed's Clarida Interview...


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The SPX +25.70, +0.90%, gapped higher and trended up in a bull flag bounce entry signal.  The SPX pulled back during the last hour after an interview with the Fed’s vice chairman Clarida discussing the slowing economy due to Covid-19.   


Ten of eleven sectors were higher on Tuesday, led by XLV, XLK and XLU

SPY up 2.62 at 286.19 on 79.1 million shares, below average volume, Up on similar volume.
VIX down 2.36 at 33.61

PFE, UNH, HD led the DJIA, 22 advancers, +9
IPGP, JKHY, SEE, MOS led the SPX, 331 advancers
SPLK, SGEN, REGN, SWKS led the NDX, 81 advancers

The two-year trend term is up.  The one-year trend is sideways.
A new uptrend has emerged following a higher low W pattern reversal. The trend is forming a bull flag setup and the 3-day short term trend is down.

Up: QQQ, SPY, IWM, DIA
Down:

Breadth strengthened on Tuesday as advancers led 1,644 to 1,306 on the NYSE and led 1,774 to 1,477 on the NASDAQ

The SPX MFC green line is at 90 and is counter-trend defensive.  Price action is in a bull flag bounce today.


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

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

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

81 of 100 NDX stocks closed higher on Tuesday.

85 NDX stocks are above their 30 DMA:  SGEN, AMZN, CDNS, NFLX, REGN, TTWO, VRTX, ALXN, 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, TMUS, TXN, ADI, FB, QCOM, SBUX, AAPL, ADP, ADSK, CDW, CERN, CTSH, EBAY, FAST, GOOGL, INTU, LBTYA, MCHP, MELI, MNST, PYPL, ROST, SPLK, ULTA, WDAY, XEL, ADBE, ALGN, TSLA, BMRN, GILD, VRSK, PAYX, MAR, BKNG, CTAS, EXPE, FISV, NXPI, CPRT, SIRI, TCOM, CTXS, AMD, ZM, AMAT, JD, MU, NTAP, NTES,


NDX Stocks to Watch on Wednesday:
Moving Above 30 DMA = 5
AMAT, JD, MU, NTAP, NTES

Moving Below 30 DMA = 2
DLTR, FOXA,


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