Markets rose modestly Thursday as they started slightly higher, and stayed above the UNCH line all day. The Nasdaq and S&P 500 rose .4% in light trade. Heading into Friday for the week the Nasdaq, which is looking for a fifth consecutive week of outperforming the S&P 500, is higher by 1.8% and the S&P 500 is up 1.2%. The S&P 500’s action tomorrow should be interesting as it now sits right at its 50 day SMA. Will it push above it like it did earlier in the year after brief interludes in February and April, or is it becoming to predictable? Energy once again showed relative underperformance Thursday as it was the only major group in the red. Perhaps some names are looking ripe for a bounce, like leader PXD. The name is trading right at the round 200 number which doubles roughly as its 200 day SMA. It has found support there each of the first four months of this year. The astute technician would have realized red flags were being waved. The stock barely moved higher after taking out a 227.52 cup base pivot point on 6/18. Volume was well below its daily average as well. Some bullish action was displayed by the 800lb gorilla WMT Thursday. It cut its outlook and rose marginally. When a stock should sell off on bad news and does not, that has to be perceived as bullish.

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