Markets demonstrated classic bullish traits, commencing on lows and going out on highs for the day. The Nasdaq outdid the S&P 500 Wednesday, something it has not done regularly. It rose 1.2% compared to the S&P 500’s .8% move. Retail names have been back in the mix which could be a good tell for the direction of the economy, perhaps feeling more willing to spend with house prices ticking up a bit. XHB has really bounced off the round 30 number and gained 1.3% Wednesday. It is coiling somewhat and is sporting a symmetrical triangle pattern, which looks like it may break to the upside. Remember 2/3rds of GDP is consumer spending, and if the charts are any indication, a tick up in the economy could be a good thing. Would that raise taper fears? Of course, and how would the market respond to that? Generally speaking it has not done well when whiffs were let out of the possibility. Getting back to the charts, we spoke this week how we were liking GPS and M. Well GPS was up more than 9% last Friday, and what do you know, M was a little jealous and did the same thing today up 9%. GPS now has a double bottom pattern in play with a trigger of 42.76. On the other hand are energy names trying to say something about the economy? Best of breed names like EOG PXD, both now rapidly in correction mode is not the best way to communicate growth is ahead. JJC lost 2% today too. Dr. Copper has lost some of its luster as an indicator, but something you should at least pay attention to, no?
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