Monday, July 13, 2020

Higher Open, Lower Close as SPX Pulls Back from Resistance...Profit-taking on Big Tech AAPL, AMZN FB, GOOGL, MSFT...


© 2020


The four-month and four-week trends are up, but the SPX -29.82, -0.94% did not have enough buying today to break through early June resistance.  SPX opened higher, rallied to resistance, and then closed lower, forming a dark cloud cover candle pattern.

NDX -234.13, -2.16% and SPX both finished lower on Monday.  NDX made a new all-time high before reversing, forming a bearish engulfing candle pattern and closing lower.

Is this a one-day counter-trend pullback or the start of a multi-day bull flag pullback?  Be prepared for either a bounce or pullback continuation on Tuesday.


PEP +0.45, +0.33% gapped up this morning on a positive EPS reaction before filling the gap as the market pulled back Monday afternoon.

JPM, C, WFC, DAL, FAST and FRC report EPS Tuesday morning before the open to start earnings season.

TSLA, NFLX, AAPL, AMZN, FB, GOOGL, EBAY, ZM and SPLK each made a new intraday high on Monday and closed lower.

Four of eleven sectors were higher on Monday, led by XLV, XLF and XLI

Health Care leaders:  PFE, LH, PKI, UNH
Financial leaders:  ZION, HBA, RF, FLS
Industrials leaders:  TXT, DE, URI, KSU

SPY down 2.75 at 314.84 on 102.9 million shares, average volume, down on higher volume.
VIX up 4.90 at 32.19

PFE, UNH, CAT led the DJIA, 17 advancers, -10
WYNN, MHK, LVS, MOS led the SPX, 222 advancers
MXIM, CSX, CTSH, NTAP led the NDX, 16 advancers


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

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

Breadth weakened on Monday as decliners led 1,897 to 1,094 on the NYSE and led 2,401 to 1,025 on the NASDAQ

The SPX MFC green line is turned down at 70 and is defensive.  Price action is a breakout re-test.


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

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

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

16 of 100 NDX stock closed higher on Monday.

64 NDX stocks are above their 30 DMA:  AMZN, CDNS, ASML, IDXX, KLAC, MSFT, NVDA, SNPS, SWKS, QCOM, AAPL, EBAY, FAST, MCHP, MELI, PYPL, SPLK, WDAY, ADBE, ALGN, TSLA, BMRN, ZM, AMAT, JD, NTES, BIDU, AVGO, MXIM, TXN, LRCX, REGN, NXPI, EA, TTWO, ATVI, ILMN, ANSS, NFLX, SGEN, VRTX, AMGN, DOCU, CTXS, DXCM, INTU, PEP, VRSK, XLNX, CHKP, COST, FB, GOOGL, LBTYA, MNST, CHTR, BKNG, CSCO, CMCSA, CTSH, GILD, KHC, PCAR, DLTR,

NDX Stocks to Watch on Tuesday:
Moving Above 30 DMA = 1
DLTR,

Moving Below 30 DMA = 11
ADI, ADSK, AMD, CSGP, INCY, ISRG, LULU, MU, ORLY, TMUS, VRSN,


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