Markets finished higher Wednesday with the Nasdaq assuming control with a .4% gain. The S&P 500 continued its tight trading and finished with another all time record close up .1%. Both benchmarks are now higher by .2% for the week, with the Nasdaq attempting to make it 4 weekly advances in a row. The indexes appear to be absorbing more body blows then George Foreman did in his thrilling fight against Riddick Bowe back in the 1990’s for those old enough to remember. Productivity down, employment figures revised lower, of course the negative GDP report everyone just shrugged off to frigid weather. When does the complacency stop? Of course no one knows and the fact that markets keep inching their way higher means one should remain bullish until the tape warrants so. The semiconductor group rose once again Wednesday with the SMH now up 10 consecutive sessions. A name to keep an eye on in the sector is CAVM. A push above the round 50 number, and more importantly a CLOSE above, would be very bullish. The stock took out a 47.57 cup base trigger on 5/27 and tested it Tuesday and reversed higher, a very good technical sign. Notice how the round 40 handle was almost precise support three times in April and May as the bottom of the cup rounded out. Bulls can hang their hats on the continued merger activity, in a diverse set of names. PL in the insurance group, HSH in the food group, and of course AGN in the healthcare group. Perhaps firms are thinking cheap money may not be around as long as people think and activity may pick up.

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