Markets rose for the second consecutive week ending Friday, as the Nasdaq recorded the better performance once again gaining an impressive 2.2%, following last weeks 1.6% rise. It has now advanced 122 handles during the last couple weeks. The tech rich index has now outperformed the S&P 500 the last 3 weeks, as the tech rotation gains steam. It is now furthering itself from the S&P 500 on a YTD basis with a 15.2 to 14.4% advantage. In fact it lies just beneath the Dow (which we do not follow much) YTD gain of 15.5%. The S&P 500 has rose 49 handles the last couple weeks, and more importantly reclaimed its 50 day SMA Friday. It now has the look on its daily chart of a double bottom, with a move above 1655, being very bullish. Although holiday shortened weeks tend to finish bullishly, routinely, I thing I did find significant, was that Friday marked the first time in some time, the benchmarks rallied, on word of possible QE “tapering”. Breakouts are still hard to find, but some recent ones are holding up very well like CBOE WWWW. Other leaders acting well include BLOX a year old internet play, which is on a 5 week winning streak. It CLOSED above the round 30 handle for the first time, after trading above it intraday 5 of the last 6 sessions. It had the potential of a 3 week tight pattern, but this weeks 5% plus move, dashed that pattern. Earnings season commences this week, with the traditional kickoff from AA Monday, although that name has become irrelevant over the years. Some banks like JPM WFC will report later in the week.
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