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Markets began the week in a listless like fashion finishing with fractional losses. Both the Nasdaq and S&P 500 fell less 1/10th of 1%, gearing up for a 19th consecutive up Tuesday? Most of the days brightest stars came from the energy sector, one group in dire need of some rotation. You will always have your leaders in a weak overall group, and it is imperative to keep an eye on them. They could be among the strongest movers once the rotation is in full effect. One that comes to mind is COG and its breakout from a 71.49 flat base trigger. RRC shrugged off a Monday morning blue downgrade and finished a percentage point higher, and nudging right under 50 day SMA resistance. One potential canary in the coal mine is the continued softness in Mexico. If the US economy is supposedly turning on all cylinders, why the fragility?

Markets ended Friday on a 4 week winning streak with solid weekly gains from both the Nasdaq and S&P 500. The S&P 500 outdid the Nasdaq this week by a slim margin, gaining 2% compared to the Nasdaqs 1.8%. The S&P 500 is also ahead on a YTD basis by exactly one percentage point up a very strong 16.9%. There were a plethora of breakouts this week, and Friday was no different with names like CS CPRT BRCM all taking out pivot points. The healthy rotations among sectors continues with essential groups like autos, transports, finance part of the strongest industries. This week chemicals joined the fray with names like CHMT EMN both gaining more than 10% this week. Defense names specifically Friday had solid days with LMT RTN both higher by 2% of strong trade. There are still plenty of sectors waiting the join the party like semis, retail and energy. Perhaps that will be the fuel the bears will have to disperse over the coming weeks.

Markets finished lower today, not a a typo, near their lows for the session. Both benchmarks were off, but the Nasdaq true to form outdid the S&P 500. Despite the downdraft breakouts once again continued to roll in with the big one being CSCO, running up 13% inspired by an earnings release. INXN was helped along by a Citi upgrade taking out a 26.73, and DDS although concluding off its highs took out a flat base pivot point of 89.52. On the downside ALK finished the day below a prior 64.65 flat base trigger from 5/6. Airlines have been a strong group so it should raise some caution when a leader in the space is wounded. Other groups like the builder ETF XHB witnessed a heavy volume decline today from almost 6 year highs. Troubling to me was the emergence of some real laggards in the space start to catch up. Notably BZH. In the credit card space COF, a doozy has started to show sign of life. Perhaps its time for the market to digest and pause and consolidate. Maybe recline for a rest on a 50 day SMA courtesy of LZB, pun intended.

Markets behaved in bullish mode once again Wednesday as benchmarks overcame early and mid afternoon weakness only to bounce back and close near highs for the day. There may soon be a cavalry charge of the booming late 1990 day traders if these markets continue to act as benignly as they have been. Breakouts came again today, reaffirming this recent advance. Today EXP took out a 72.41 flat base trigger post earnings, and HMC took out a 3 week tight trigger of 41.13. Recent breakouts like GGOG DNKN. continue to act well post breakout, exactly what you want to see in that situation. Something interesting that caught my eye charting yesterday was the absence of other world indexes following our lead Tuesday. ETFs like EWC EWZ have been down two consecutive sessions counting today, while the Nasdaq and S&P 500 have done just the opposite. As the markets rejoice, and the familiar “I am going to Disney World” (DIS) phrase, if the performance of recent IPO SEAS continues, the saying may be changed to SeaWorld.

Markets rose Tuesday which is almost a guarantee as it has done so for 18 consecutive times in a row. The S&P 500 played the leading role today gaining more than 1%, outdoing the Nasdaq’s .7% advance. Perhaps the S&P 500 is in no mood to relinquish its lead over the Nasdaq YTD. Going into today the S&P 500 was up 14.6%, and the Nasdaq 13.9% but furiously trying to close the gap. Breakouts were recorded today with one of the prettiest being KSU’s 112.35 flat base trigger today. The transports have played a vital role in this moving this sparkling rally right along, pun intended. One group losing its luster, not gold, is the utility sector. After a 15 week winning streak the XLU, lost ground the last 2 weeks giving back about 3% in the process. They happened to be two of the highest weekly volume moves of the year. The ETF has found 50 day SMA today. Perhaps the fact that unemployment still being elevated, GDP still very tepid by historical standards, is the reason that so many are waiting for the 5% pullback or more. They are some very patient people. Perhaps to a fault.