Markets fell Friday in light volume, and both the Nasdaq and S&P 500 losing ground on the week. The Nasdaq declined .8%, and the S&P 500 1.1%, keeping recent tech strength intact. The Nasdaq is extending its lead over the S&P 500 on a YTD basis, up 21.2% to the S&P 500’s 18.6% advance.Both benchmarks remain extended above their respective 50 day SMAs, with the S&P 500 about 2.5% north of its, which is 1652. The Nasdaq is 4% ahead of its 50 day which lies at 3516. Moves back to that moving average, could have a dramatic impact on individual stocks, but would be a welcome breather for the indexes. Are the indexes stalling up here or just trying to regain some stamina? New highs versus new lows has been dwindling. For example Friday saw just 121 new highs, against 69 new lows. The major averages seem to not be responding well to better than expected economic data. Taper talk, ad naseum, could be the culprit. But all that being said, leading stocks have been acting well. KORS PCLN TSLA come to mind. We are seeing more chemical names pop onto our radars, on the 52 week high list. Rotation is a good thing. International markets, European, Mexican and Chinese shares seem to be in a cheery mood as of late. Industrial ouptut in China, perhaps sent metal names higher. A last piece of news for the bulls was an article I came across here: http://www.rasmussenreports.com/public_content/business/general_business/july_2013/22_say_stock_market_will_be_stronger_in_a_year Seems like this market still has some fuel, no?
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