Markets started the week Monday in fine fashion, opening meagerly, and going out on their highs. It was the Nasdaq’s and S&P 500’s first up Monday in 4 weeks. The Nasdaq guided its way back above its 50 day SMA, but volume was muted. When looking at the Nasdaq you really have to come away impressed when you realize the two biggest stocks AAPL, and now GOOG are under performing. GOOG is now more than 8% off its recent 52 week high, and currently on a 4 week losing streak. That has not happened in one year. Will it be the start of something ominous? Doubtful, but most did not feel that way about AAPL. Keep in mind those 2 stocks comprise of more than 11% on the index. Breakouts were scarce today, but AIG took out 40.00 flat base trigger. NWS guided past a 4 week tight trigger, but volume was soft. TM had a nice follow through after Fridays 106.10 flat base pivot point. This market keeps climbing the proverbial wall of worry, and doing so in an emphatic way. Food, alcohol, and real estate are all among the top sector groups, which of course leaves question marks to the legitimacy of the rally. Bearish advisers are currently at only 20%, a very low figure. On the bright side, some merger activity occurred today as GE moved into the energy space with interest in LUFK. It was a hefty premium to boot.
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