Markets concluded Friday with the benchmarks up for only the second time in 6 weeks. The Nasdaq outpaced the S&P 500 by a 1.4 to .9% margin, and with that the Nasdaq inched ahead of the S&P 500, at the half way mark for 2013. The tech rotation is building, and after two quarters the Nasdaq is up a robust 12.7%, compared with the S&P 500’s 12.6%. Volume was above average on both indexes for the week, and they sported nice reversals, but both ran head on into stiff resistance at their respective 50 day SMAs. This coming week should resolve those issues. Commodities slumped this week, with the exception of oil, as deflation rears its ugly head. Gold fell almost 5% for the week even with Fridays solid reversal, is down more than 31% from last Octobers high. Copper ETF JJC fell 1.5% this week, for its third weekly decline, falling further into bear market territory, now down 23% from its recent 52 week high. Natural gas ETF UNG fell more than 6%, and further lower cementing its teenager status. It is in a bear market as well, lower by 21% since its mid April high. Not the type of action you would normally see in a thriving economy. Something that did catch my eye this week, was the bull bear investment advisors survey. Its is heading lower fast testing the 40 level for the third time since last summer. That can be construed as bullish, in a contrarian fashion. The less bullish managers that exist, the more capital their will be to deploy, adding fuel to the rally, going forward once they decide to flip and turn positive. That however could take awhile. As always pay greater attention to the major averages, and how leading stocks are faring.
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