Markets continued their winning ways on Friday and for the week as well. Benchmarks do what they do best, confounding the most, and the Nasdaq led the way with a 3.3% weekly gain. That comes following a very profound move higher of 5.3% the week prior. The tech rich index has now climbed more than 500 handle from the intraday lows on 10/13, in just 13 sessions. Friday saw a CLOSE above the round 4600 level which was stubborn resistance throughout the first 3 weeks of September. The Nasdaq which very briefly saw a dip into negative territory for 2014 amid the recent selloff is now higher by 11.9% YTD. The S&P 500 closed back above the very round 2000 figure on Friday and volume was energetic. It maintains it bullish form of finishing well into the highs of its daily range. Their is an old saying that bull markets never give you the chance to get in, meaning pullbacks many look for never materialize, and this current move is one of the best examples in recent memory. Bears can still make their case that defensive groups are still dominating, but their is a healthy bunch amongst the leaders as well including healthcare, transports and semiconductors. Even beaten up groups which plunged earlier in the year are beginning to make their presence felt. The software sector is no longer acting impotent, pun intended. Below is the chart of EPAM and how it appeared in our Wednesday 9/17 Game Plan. The firm which celebrated in second birthday earlier this summer, is up 8 of the last 9 weeks, with 5 of the up weeks gaining more than 3%. It has since gained more than 20% from the initial move above it 50 day SMA.
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