Markets advanced once again with the Nasdaq leading the way with a modest .3% advance. That benchmark has acted very nicely since taking out a 4486 double bottom pivot point on 8/18. In fact if not for the slimmest of losses on 8/20 the index would be on a 10 day winning streak. Grabbing most of the attention was the S&P 500 which closed above the very round 2000 handle for the first time ever. From the intraday lows of 8/7 less than a month ago the S&P 500 had advanced 100 handles. It could be very likely after that long run and stopping right at the 2000 number, a prudent pause or even pullback is in order. Health care, energy and materials led the way Tuesday, and just as you would like to see in a healthy bull the utilities were by far the worst performer slipping .7%. The XLU had been creeping up on a 43.41 double bottom trigger off recent 200 day SMA support, but todays negative outside day has put that on hold for the moment. Perhaps energy is catching its breath and has regained its stamina after a recent fall. The XLE was stopped almost precisely at its 50 day SMA Tuesday. Look for a move above the 50 day SMA with a buy stop of 99 for entry. Add to above a good looking double bottom trigger of 101.07 taking shape. Volume must accompany the move, much like it did on the slice of the 50 day SMA to the downside on 7/31. PXD has risen handsomely off the round 200 handle that we liked there in the Friday 8/15 Game Plan.
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