Thursday, September 10, 2020

Bull Flag Bounce Falls Back to Support...Re-bounce or Break of Support?


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NDX -241.73, -2.12%, gave up 73% of Wednesday’s 327-point gain and pulled back above Tuesday’s low, creating a 5-day bull flag setup.  The pullback was led by weakness in AAPL, NVDA, AMZN, MSFT and PYPL. 

SPX -59.77, -1.76% closes at 3,339, gave up 88% of Wednesday’s 67-point gain and pulled back near Tuesday’s low, creating a bull flag setup or a potential break of support.

Traders need to be prepared on Friday for either a bounce up or a break of short-term support.                                                                                                                                            

 All eleven sectors were lower on Thursday, led by XLB, XLP and XLI.

Materials leaders:  MLM, CTVA, VMC, SHW
Consumer Staples leaders: TSN, LW, SYY, ADM
Industrials leaders: UAL, ALK, NSC, AOS,

SPY down -5.90 at 333.89 on 90.5 million shares, above average volume, down on similar volume.
VIX up +.90 at 29.71

MCD, NKE, DIS led the DJIA, 1 advancer, -24
TPR, NWL TSN, LH led the SPX, 51 advancers
TSLA, ALGN, MRNA led the NDX, 3 advancers

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

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

Breadth weakened on Thursday as decliners led 2,023 to 982 on the NYSE and led 2,295 to 1,127 on the NASDAQ

The SPY MFC green line is pointed down at 49.5 and is short-term bearish.  Price action is a pullback to a bull flag setup.


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

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

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

3 of 100 NDX stocks closed higher on Thursday.

23 NDX stocks are above their 30 DMA:   CMCSA, ORLY, CPRT, CSX, TCOM, SBUX, AVGO, BKNG, ULTA, MAR, EXPE, FOXA, JD, WDAY, ZM, ALXN, ALGN, ADBE, ISRG, MDLZ, NVDA, PAYX, TSLA,


NDX Stocks to Watch on Friday:
Moving Above 30 DMA = 0


Moving Below 30 DMA = 17
AAPL, AMGN, AMZN, CHTR, COST, CTAS, CTXS, FB, INTC, INTU, MNST, NXPI, PEP, QCOM, ROST, TXN, XEL,


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