Markets seem reluctant to move away from the comfortable confines of the round numbers. For now at least. We all know the 4000 and 1800 figures of the Nasdaq and S&P 500, but you can throw in the S&P 600 with the round 650 number. The small cap index is a good barometer of how long the rally may last as near the end of bull markets large caps will tend to outperform. If the S&P 600 starts to lag, this bull that many think is long in the tooth may begin to fray. The calls for corrections seem to be growing louder each day, warranted or not. That is bullish, but as always paying close attention to the price and volume action of the benchmarks supercede everything. Some retail names have been acting well lately like DECK FNP VFC. Software which has taken a breather has had some reasons to cheer with SPLK ADSK showing nice recent moves. Oil related names did take some hits today, as the Iran deal over the weekend was blamed. Almost get the feeling that some of these leaders in the space anticipated the news. Names like CXO CLR OAS SN to name a few have been shaky to say the least as of late. Keep an eye on the semi group as names like QCOM which has risen 8% over the prior two weeks, and staged a decent reversal today to finish at highs for the session. The SMH is really tightening up its action. It has now formed a symmetrical triangle and hugging its 50 day SMA. A position can be entered with a buy stop above the top of the pattern at 41.30.
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