SPX Earnings Rally Continues as Breadth and Momentum Slows...Industrials, Materials and Utilities Lead All Sectors Higher...

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The SPX +42.03 gapped higher, followed by a volatile trading range than closed higher for the day but below its open and formed a black candle.    The SPX continued Monday’s rally with positive earnings reactions from LMT, SBNY and GS.

IWM, SPY, DIA and QQQ each gapped higher on the open and closed higher than Monday’s close, but lower than its open and formed a black body candle.

GLD and TLT closed higher, while /CL, TNX and DXY moved lower.

65 SPX companies report EPS this week:  BAC, BK, SCHW, Tuesday: GS, HAS JNJ, LMT, SBNY, STT, TFC, ISRG, JBHT, NFLX, OMC, UAL, Wednesday: ABT, BKR, CFG, CMA, ELV, MKTX, MTB, NDAQ, NTRS, PG, PLD, TRV, CCI, EFX, IBM, KMI, LRCX, LVS, PPG, TSLA, Thursday: AAL, ALK, DGX, DHR, DOV, DOW, FCX, FITB, GPC, KEY, MMC, NUE, NVR, PM, POOL, SNA, T, TSCO, UNP, CSX, RHI, SIVB, WHR, Friday: AXP, HBAN, HCA, IPG, RF, SLB, VZ

First day reaction:

Positive: LMT, SBNY, GS, BAC, BK, USB, WFC, JPM, DAL, DPZ, FAST, PGR, WBA, BLK, PEP = 15

Neutral: STT, JNJ, C, UNH = 4

Negative: TFC, HAS, FRC, SCHW, MS, PNC = 6

SPY up 4.31 at 371.13, on 97.0 million shares, above average volume, up on lower volume.

VIX down .87 at 30.50, volatility remains elevated.

QQQ up 2.13 at 271.48

CRM, AXP, JPM, DOW led the DJIA, 25 advancers, -4

CCL, LMT, NCLH, RCL led the SPX, 448 advancers

PDD, DOCU, LCID, OKTA led the NDX 78 advancers

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

Up:  IWM, SPY, DIA, QQQ,

Down:

All eleven sectors were higher on Tuesday, led by XLI, XLB and XLU and upward momentum did slow.

Industrials leaders:  LMT, NOC, LHX, HII

Basic Materials leaders:  MOS, DD, IFF, CE

Utilities leaders:  PNW, EVRG, CNP, DTE

Advancers weakened on Tuesday as advancers led 2,300 to 909 on the NYSE and led 3,023 to 1,605 on the NASDAQ.

The SPY MFC green line is pointed up at 22.0 and is short-term bullish.  SPY opened higher and closed higher, but lower than its open.

Uptrend sectors:  XLE,

Neutral sectors:  XLF, XLI,

Down trend sectors:  XLB, XLY, XLK, XLV, XLU, XLP, XLRE, XLC,

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

3-month Intermediate Term Market Trend: Down

3-day Short Term Market Trend: Up

78 of 100 NDX stocks closed higher on Tuesday

31 NDX stock are above their 30 DMA:   REGN, BIIB, VRTX, ORLY, DXCM, GILD, PCAR, AMGN, KHC, MRNA, PEP, SIRI, ABNB, ADP, ADSK, ILMN, KDP, MNST, NFLX, ODFL, SBUX, VRSN, CPRT, CTAS, CTSH, EA, FTNT, HON, IDXX, MAR, ZM,

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 9

CPRT, CTAS, CTSH, EA, FTNT, HON, IDXX, MAR, ZM,

Moving Below 30 DMA = 1

MU

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