Markets advanced Thursday with the Nasdaq leading the way with a .55% gain, basically doubling the S&P 500’s move higher by .25%. For the week heading into Friday the Nasdaq’s weekly gain is also double the S&P 500’s advance as it is higher by 1.60%. It is on pace to better the S&P 500 on a weekly basis for the second consecutive week. Two weeks is too early to call it a trend but it is certainly a good start, and would be welcome by the bulls for some sector rotation. The internet group has come alive as of late, today with nice gains by BITA WWWW. Software has started to act firmer, of course this group was just torpedoed this year, and the biotechs are starting to advance. Keep an eye on BIIB as it trades right near the 50 day SMA and the round 300 handle as it builds the right side of a potential cup base pattern. The benchmark reclaimed its 50 day SMA Thursday, but once again volume was light. You can blame that on the holiday weekend, but it has been this way for some time. As a technician I closely monitor and value volume, but perhaps over time we will rely less on it as trading desks at the big banks are eliminated and the recent emergence of ETFs over the years. There is no question that volume on down days has been elevated, but overall numbers are shrinking. Heading into Friday, bears may become nervous as traditionally holiday shortened weeks are bullish for the markets. Please thank any members of the military for their service, especially this weekend.
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