Markets rose Tuesday with the Nasdaq leading the way as usual. The tech heavy benchmark is now higher 8 of the last 10 sessions. It is quickly narrowing the YTD gap, within 1% now, that the S&P 500 has been enjoying for some time now. The smaller cap names are showing sign of life recently and a peek at the S&P 600 chart shows a nice handle forming on its current double bottom base. A move above 679 would constitute a breakout and add even more ammunition to the bullish thesis. Financials were the best performing group Tuesday, and that could say things going forward about the health of the economy. The XLF rose 1% today and while the more popular names like BAC and C are still well into correction mode down 13% from their most recent 52 week highs, names like WFC continue to shine. Keep an eye on STI as it completed handle on its cup base last week. Trigger for long entry there is 40.79. The light volume within the handle following a strong volume 3 day push between 6/6-9 is just what you want to see technically. Perhaps another bright point that the economy is on the mend, from a technical point of view, is the performance of some paper names. Boring, old IP that does not garner much press recently is trading right at a 48.58 cup with handle trigger. Now a move above the round 50 handle which has proved problematic dating back to last July, September and December and this February could make this name sexy once again.
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