Markets started strong Monday right out of the gate, and held their gains and remained strong. The Nasdaq for a change led the way gaining 1%. Volume was soft but the price action was just the opposite for the tech benchmark last week. Each day the index displayed hallmark bearish characteristics by opening high and finishing near session lows. It did however collide with its 50 day SMA, and a punch above the important moving average would be a welcoming sign for the abundance of bulls still alive and kicking (last Friday data from the Intelligence Investor surveys found bearish investment advisors at dangerously lows levels of just 17.5%). The Nasdaq last Friday also showed weak numbers on new 52 week highs versus new 52 weeks lows, with the score coming in almost even at 32 to 26. The S&P 500 looks technically better as it is less than 1% lower from all time highs. A close above 1884 would put the benchmark at all time highs and looking to strengthen its newly given leadership status. Looking at the battered software sector is was interesting to see how the more mature plays like the MSFT ORCL and ADBE’s of the space have assumed their own dominance over their younger peers. That is usually a sign of risk coming out of the sector and perhaps out of the overall markets as well. Time will tell but with software MSFT was up almost 2% Monday after recently taking out the round 40 number, and ORCL did just that today gaining 3.5%.
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