Markets continued their rotation into technology as the Nasdaq outdid the S&P 500 for a third consecutive week by a 1.7% to 1.2% margin. The Nasdaq on a YTD basis is quickly catching up to the S&P 500, like ORB closing down the stretch in the Kentucky Derby last week. The Nasdaq is now up 13.8%, just under the S&P 500’s 14.5% YTD performance. Leading stocks are performing well, signaling genuine strength. Short interest on the NYSE, which seemed to plateau at the 18 level, is now trending upward toward 20, indicating that could be more fuel added to the rally’s fire down the road. It is still below the 5 year high of 22.29, but it is significant to see there still are some cynics regarding the markets legs. Tech stalwart LNKD was clinging onto 50 day SMA support following its earnings report 5/3, but succumbed Friday losing it and 2%. Usually you like to see strong immediate bounces off the 50 day in strong trade after precise support at the 50 day. Others just clinging on to their 50 day SMAs following recent reports are BMS PG K. They better gather some steam soon. Elon Musk had quite the week, with his holdings TSLA SCTY both up on a weekly basis of 41 and 7% respectively.
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