Markets concluded Tuesday’s session UNCH, today coming back from modest mornings losses. This market continues to confound the most and the major benchmarks stubbornness to give up any of the recent gains has to be admired. The Nasdaq bested the S&P 500 even if it was by a fractional margin. The index is going for a fifth straight weekly gain. That has been done on a couple of occasions with one in 2013 and the other between the weeks ending 2/7-3/7 in 2014. If it can gain more ground this week, it is up .4% thus far, a move higher the next week would make it 6 straight a feat not seen since the first 6 up weeks to begin 2013. Perhaps we are getting in extended territory and the most constructive technical action would be some sideways consolidation. The recent action in the banks is very encouraging with the XLF still holding above its 22.75 flat base trigger it took out last Friday. Best in breed names like WFC continue to power to fresh all time highs, and even laggard names like GS C JPM are all either back above their 200 day SMAs or right at them. BAC looks much better as of late after back to back 3% weekly gains. This week it is higher by more than 2% thus far. A nice double bottom has taken shape with a pivot point of 16.60. Today it filled the bearish 6% gap precisely after some miscalculations were announced. The good showing by the financials recently could ignite or perhaps is foreshadowing some future strength in the homebuilding group. More rotation into this maturing rally would be a very welcome development.
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