Markets displayed some volatility Tuesday to start the holiday shortened week. The Nasdaq which outperformed the major benchmarks with a gain of .6% seems to be finding a floor for the time being at the round 4200 handle. The S&P 500 on the other hand seems to be finding a ceiling at the round 1850 figure which has been resistance on New Years Eve, 1/15 and today. A close above 1850 would be very impressive. Tuesday saw some defensive groups such as consumer staples and utilities lead the way. Even the lagging energy sector saw a boost. The XLP is at a critical juncture here as it is testing its enormous 42.30 flat base pivot point it took out on 10/28. Volume was one of the strongest of the year that day and it was a long 5 month base, which normally have a better chance of success. It has not CLOSED below 42 since the breakout. KO PEP in the ETF are looking to bust through their respective 50 day SMAs to the upside here. PG recorded a nice bounce off 200 day support and the round 80 number today. The XLU which has put up some decent accumulation weeks (weeks ending 12/20/13 and 1/10/14) is rounding out the right side of its cup base with a potential trigger of 39.71 looming. It was good to see a decent bounce off the lows today, but hard to be inspired by the groups that led the way.

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