SPX Lower Open, Higher Close Broad Rally Key Reversal Day on Heavy Volume...Bullish Engulfing Patterns Abound...Financial, Energy, Technology Lead All Sectors Higher...

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The SPX +92.88 opened lower after the CPI report of M/M 0.4% vs 0.2% and Y/Y 8.2% vs 8.1% expected.  /ES futures immediately began to fall at 8:30 am as the CPI report was released and fell 122 points over the next 63 minutes.  At 9:33 am the SPX bottomed and began its reversal. 

A trading day that opens lower and closes higher is often called a key reversal day.  A big point reversal day with heavy volume is often ultimately seen as a capitulation bottom.

Trading volume soared with the second highest volume day of the past three months.  DIA, SPY, IWM and QQQ each formed a bullish engulfing pattern with a strong bounce that engulfing two to four prior days.

The unofficial start of earnings season is tomorrow morning with EPS reports from JPM, C, MS, WFC, UNH, PNC, FRC and USB.

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

SPY up 9.41 at 365.97, on 147.2 million shares, above average volume, up on higher volume.

VIX down 1.63 at 31.94

QQQ up 6.16 at 268.82

JPM, WBA, MMM, CVX led the DJIA, 30 advancers, +17

DPZ, WBD, KEY, FTI led the SPX, 467 advancers

BIIB, CHTR, SWKS, CMCSA led the NDX 83 advancers

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

Up:  DIA, SPY, IWM, QQQ,

Down:

All eleven sectors were higher on Thursday, led by XLE, XLP and XLY.

Financial leaders:  KEY, FITB, HBAN, BLK

Energy leaders:  FTI, COP, BKR, TRGP

Technology leaders:  SWKS, HPQ, LRCX, EPAM

Advancers were stronger on Thursday as advancers led 2,317 to 948 on the NYSE and led 3,169 to 1,496 on the NASDAQ.

The SPY MFC green line turned up at 9.4 and is short-term bullish.  SPY opened lower and closed higher a key reversal day.

Uptrend sectors:  XLE,

Neutral sectors:  XLY, XLF, XLI, XLB,

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

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

3-month Intermediate Term Market Trend: Down

3-day Short Term Market Trend: Up

83 of 100 NDX stocks closed higher on Thursday

20 NDX stock are above their 30 DMA:   REGN, BIIB, VRTX, MNST, ORLY, DXCM, GILD, PCAR, ODFL, AMGN, KDP, KHC, MRNA, PEP, DLTR, ILMN, MU, NFLX, SBUX, SIRI,

NDX Stocks to Watch on Friday:

Moving Above 30 DMA = 6

DLTR, ILMN, MU, NFLX, SBUX, SIRI,

Moving Below 30 DMA = 0

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