Markets began the week Monday in a jolly mood, and the benchmarks have started to like beginnings of the week. Looking at the leading the Nasdaq for example since the disastrous Monday on 2/3 where the index dropped 2.6%, the last 3 starts for the week have been respectable. On 2/10 it rose .5%, 2/18 (Tuesday with holiday shortened week) up .7% and today it gained .7%. That 2/3 session sliced its 50 day SMA in very heavy trade, but as we like to talk about the big round numbers here at ChartSmarter, the 4000 figure held almost precisely and we are up 300 handles since. At that pace of roughly 300 handles a month it will hit all time high territory around the May. Of course that is being silly predicting that will occur, but just an illustration on how strong this bounce has been. A few notable sectors that have been firming up would be the semiconductors and the banks, two important components. The SMH has bounced 9% since finding support at its round number of 40 in the beginning of February as well. Impressive is how well its done with INTC comprising of almost 1/5th of the ETF, as that old name is near correction mode down almost 10% from its most recent 52 week high. Stick with better looking charts like MU that is approaching a retest its 2/6 move of 3.5% through a symmetrical triangle. Perhaps waiting for 50 day support near 23 is the better play. GS in the financial space looks best to me as it bounced right off its own round number of 160 on 2/3.
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