Markets recalled their former strong affinity for “Turnaround Tuesdays”, as earlier in the year they went on a 18 consecutive Tuesday winning streak. Benchmarks finished slightly off their lows and it seems plausible that both the S&P 500, and Nasdaq can go on to retest their 50 day SMAs where resistance should be stout. That means they can both still rally almost 2%, and Nasdaq resistance could run right into the round handle of 3400. Of course markets rarely act how the masses want them to, and I remain bearish, but for the indicies to resume their strong early annual run, banks must participate. The XLF is looking like it may be repelled at its 50 day SMA, just north of here, after 4 consecutive losses in elevated trade. It rose almost 2% today, but volume was less than inspiring. The builders got an early boost, courtesy of a LEN earnings report, but then soured as LEN’s more than 5% move higher vanished to a smaller than 1% advance by the close. Energy performed well today, even as the greenback gained for a 6th straight session, via the UUP. Perhaps that energy play can gain some strength on a dollar pullback, after the robust progress.
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