Markets did not follow the lackluster Monday routine as the Nasdaq scored its first gain to start the week in 6 weeks. It outperformed the major benchmarks with a gain of .5% and it was its fourth gain in five sessions with all five going out at or on highs for the session. Some encouraging signs are the rotation the building group has been receiving. The XHB trades a bot wide and loose, but the weekly smooths out the picture. For the last two weeks it has risen a little more than 1% on very solid trade with excellent support at its 200 day SMA. Investors Intelligence survey shows a big decrease among bullish investment advisers, which is often used as bullish in a contrarian fashion. To begin 2014 the number of bullish advisers was at a 5 year high of over 61%. That figure now stands at 46%. Conversely, some concerning behavior stems from a name in the transport group. FDX for example got the shaky Monday memo, and followed the script today falling 2 handles. It has lost ground for four consecutive weeks now and the last time that occurred were between the weeks ending 7/29/11-8/29/11. That stretch was a very soft patch for the stock as the weekly losses in order were 6, 5, 2 and 9% and all were accompanied by heavy volume. It may not be the bellwether it once was, but it is certainly is something investors should be aware of. Do the deliver “canaries”?

This article requires a Chartsmarter membership. Please click here to join.