Markets were little changed Thursday putting in a very respectable showing after yesterday lofty gains. A stubbornness to relinquish any gains has to be interpreted as bullish. The Nasdaq was the fractionally higher today, and we have discussed the importance of round numbers not only with individual names but indexes too. Not surprisingly the tech benchmark shied away from the 3800 figure today. Is it a little ahead of itself? Could be as it has retreated to its 50 day SMA four times so far in 2013. It now rests approximately 140 handles ahead of that line and a move back to it is certainly possible, and would still be in a healthy uptrend. The Nasdaq is up 1.8% so far this week going into Friday, and looking for its third consecutive week with close to 2% each one. The S&P 500 looks solid just above the flat base trigger 1710 it took out yesterday. Going into tomorrow it is up just above 2% for the week, and if it outperforms the Nasdaq tomorrow would be the second consecutive week of besting the tech index. Perhaps a little reversion to the mean and a start of an “industrial” stock sector revolution which has been building momentum. Industrial, energy, transports and chemicals are raising their hands begging to be noticed. Interesting how the TLT was stopped dead in its tracks yesterday at the 50 day SMA. If that line does prove difficult to overcome those in the 3% 10 yr yield camp can start looking real smart, and may put a short term damper on equities.
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