SPX Falls after Powell Speaks, Economic Concerns Persist as SPX Pulls Back for 2nd Day...

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Markets sold off Wednesday after Jerome Powell spoke regarding the risks and uncertainties of the current environment with the economic effects of the pandemic.

NDX -112.37, +1.23%, opened higher and closed lower and SPX -50.12, -1.75%, also opened slightly higher and closed lower for the second straight day.  The NDX is a bull flag setup and the SPX is a narrow sideways channel at support.   

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

SPY down 5.07 at 281.60 on 144.7 million shares, above average volume, down on higher volume.

VIX up 2.24 at 35.28

MRK, JNJ, WMT led the DJIA, 1 advancer, 0

BLK, EQIX NEM, KSU led the SPX, 53 advancers

ZM, REGN, NTES, LBTYA led the NDX, 16 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 a second day of pullback may be signaling a shift to sideways.

Up:

Down: QQQ, SPY, DIA, IWM

Breadth weakened on Wednesday as decliners led 2,649 to 326 on the NYSE and led 2,671 to 623 on the NASDAQ

The SPX MFC green line is pointed down at 87 and is counter-trend defensive.  Price action is day two 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 down.

3-month Intermediate Term Market Trend: Sideways

3-day Short Term Market Trend: Down

16 of 100 NDX stocks closed higher on Wednesday.

61 NDX stocks are above their 30 DMA:  SGEN, AMZN, CDNS, NFLX, REGN, TTWO, VRTX, INCY, AMGN, ATVI, CSCO, EA, ILMN, KHC, VRSN, AVGO, CHTR, IDXX, ISRG, KLAC, LULU, MSFT, MXIM, NVDA, ORLY, PEP, SNPS, SWKS, ADI, FB, QCOM, SBUX, AAPL, ADSK, EBAY, FAST, GOOGL, INTU, LBTYA, MCHP, MELI, MNST, PYPL, SPLK, WDAY, ADBE, ALGN, TSLA, BMRN, VRSK, FISV, NXPI, CPRT, CTXS, ZM, AMAT, JD, NTES, BIIB, TMUS, ALXN,

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 20

ADP, AMD, ANSS, CHKP, COST, CSX, CTAS, CTSH, EXC, EXPE, FOXA, INTC, LRCX, MU, NTAP, PCAR, SIRI, TCOM, TXN, ULTA,

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