Markets continue to trade in a narrow range, with both benchmarks dealing with big round numbers. That is where stocks and indexes like to pause, and either retreat or advance. The Nasdaq is dealing with the 3600 handle, but on its weekly looks like it is in the process of carving out a bullish 3 week tight trigger depending on Fridays close. The S&P 500 is flirting with the 1700 number, and has been up for 4 straight weeks, and the last time that occurred between the weeks ending 4/26-5/17, it lost some altitude. It fell 4 of 6 weeks, losing 127 handles from top to bottom. Am I saying that’s going to happen again? Of course not, but it could too. As I scan through many economically sensitive names, I have to say maybe economy is doing better than we think. I remain a skeptic, but charts do not lie. Of course UPS is the dissenter, but IR DOV JCI all have had impressive moves. Maybe the markets recent moves anticipated this brilliantly. Will the round numbers we are experiencing currently, going to be a sell the GDP number moment?
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