Markets capped off the week Friday with small gains with both the Nasdaq and S&P 500 up by .2%. Weekly gains for both were just as close with the S&P 500 putting the Nasdaq’s 5 week outperforming streak to rest. The S&P 500 rose 1.4%, while the Nasdaq gained 1.3%. The small cap S&P 600 acted better than both with a 1.8% weekly gain. It closed just above the double bottom with handle trigger at 679, and a healthy small cap market suggests there is still more room to run in this rally. The S&P 500 maintains its comfortable edge in the YTD category as well up 6.2% compared with the Nasdaq’s 4.8% advance. Healthcare names were among the winners Friday along with energy, and materials. May sound like a broken record, but the strongest groups will often lead, and continue to do so for lengthy periods of time, and where you should focus your watch lists on for potential long plays. The XLV took out a 60.51 double bottom with handle trigger Friday and is now enjoying a “hearty” 9 of 10 week advance following a big 4% weekly loss the week ending 4/11. Top component JNJ (making up 13% of the ETF) which we profiled in Monday’s 6/2 Game Plan with a 102.08 pivot point, is now comfortably ahead of that trigger. The stock sports a nice dividend yield of 2.7%. Market breadth remains robust with tallies of new 52 week highs versus 52 week lows Friday coming in at 274 to 15 for the NYSE and 127 to 27 for the Nasdaq.
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