Markets cheated on their diet we spoke about yesterday, and rebelled both recapturing their losses from Wednesday. The S&P 500 was not able to pierce the 1600 level, but the Nasdaq once again outperformed gaining 1.26% on mediocre volume. Breakouts are back in the news with more regularity giving the rally credence. Today PRU blasted through a 60.70 flat base trigger, and DNKN dunked a 39.88 cup with handle pivot point on double average daily trade. Today’s move was unexpected based on how poorly the transports looked yesterday. The IYT lost its 50 day SMA in strong trade, and did not muster much today finishing just below its 50 day SMA. KSU did the same today losing 5% and its 50 day Wednesday concluding just below it as well. UNP is the undisputed best of breed. The gap between UPS/FDX continues to widen as FDX lost its 200 day SMA yesterday and rests almost 16% off its 52 week high, while UPS is delivering, pun intended, lying just below 1.5% off its most recent 52 week high. Is this market on a sugar high? Literally speaking it may be so judging by the 21.66 flat base pivot point CZZ is sporting.
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