Markets rose for the week after a gloomy start, a bullish development as its not where you start but how you finish. The S&P 500 outperformed the Nasdaq for the second consecutive week, which was a rarity in 2013 as the tech benchmark handily beat the S&P 500. Could it be signaling a change with the large energy, material and industrial exposure? The S&P 500 rose 1% for the week against the .6% gain for the Nasdaq. The Nasdaq is on an impressive 5 week winning streak but did put in back to back poor closes both Thursday and Friday. Perhaps it will spend 2014 just the opposite of the way it did in 2013 by visiting its 50 day SMA every odd month. In 2013 each even month saw a move to the 50 day, and this year we saw a move in January and perhaps in March that will occur. Not all tests last year held, but the important moving average was quickly recovered. Problem is that line now resides at the round 4200 handle which happens to be about 3% away, and a move to that line could be constructive. The financials behaved well Friday on a weak tape as names like GS JPM put in solid 4% plus weeks. The round numbers came in handy to as GS started February off holding at the 160 handle, after beginning January with problems at the 180 figure. JPM which put in a bullish weekly engulfing candle did however shy away from the round 50 handle which was pennies above a good looking 59.92 cup base trigger. Another example of why you demand CLOSES above the pivots as we do with our precise entry and exit points every night here at ChartSmarter.
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