Markets staged a nice comeback to begin the week recovering from morning losses. The Nasdaq, which recorded a tight inside day following Fridays nice comeback, made the nicest attempt to go positive after a .6% loss went UNCH in the early afternoon, but finished down .2%. The S&P 500 finished roughly about there as well. The price action has to be respected as the bears can never seem to get any traction. It feels as if the indexes are like the ENR bunny. That stock sliced its 50 day SMA Monday, after last weeks bearish outside week losing 2.7% in the process. Could the bunny be trying to tell us the benchmarks are fatiguing? It is now down 3 of the last 4 weeks and notice how tightly the 4 weeks ending 6/20-7/11 finished (all closed within .78 of each other). Paper stock were wounded today, and they are often a good tell of the gauge of the economy, as the more goods they package, the stronger the demand. RKT sliced 5% from its share price today and now is in danger of a 3 week losing streak. IP fell almost 3% and found 50 day SMA support, but that brief pierce above the round 50 handle on 6/30 looks like it may be a bull trap. That 50 figure was strong resistance dating back to last July and September, and this February. Peers PKG and KS both fell more than 2% as well. Earnings continue to impress as CNI NLFX and CMG are all up after the close. Tomorrow they keep coming with heavyweights like BRCM MCD MSFT KO and AAPL reporting. Buckle your seat belts.
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