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Markets ended the week ahead of the long weekend up for the third consecutive week. The S&P 500 rose almost 1% for the week compared to the Nasdaq’s .3%. Both benchmarks are now up every week this year, and the S&P 500 edges out the Nasdaq on YTD performance as well by a 4.2% to 3.8% margin. Each day this week the markets have been making it a habit of going out on the highs, rejecting early weakness more than a few times. Classic bull market characteristics. Friday brought some more breakout fuel to the rally fire with ROC taking out a 52.07 cup with handle trigger, COV a 60.91 flat base trigger, and WTR a 26.76 cup with handle trigger. Strengthening sectors seeing some rotation into them this week included the transports, and internet groups. Heavyweights KSU NSC report earnings Tuesday. The 800lb gorilla (losing weight rapidly) reports on Wednesday. The stock mired in its own personal bear market, down 30% from recent highs, comprises more than 8% of the Nasdaq. You have to come away impressed with the YTD performance of the Nasdaq, shrugging that statistic off. Comparing some household, individual names that we came across charting, are KO PEP. For those of you old enough to remember the Coke/Pepsi challenge back in the day, KO always won hands down in my opinion. The stocks are telling a different story decades later however. PEP up 10 of the 12 trading days this year, is carving out the right side of its base nicely, while KO is perhaps losing some fizz, is trying to play catch up. Karma in the Coca Cola?

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