Markets overcame lukewarm early weakness to go out on highs for the session. Both the Nasdaq and S&P 500 gained .3%, and with that the S&P 500 is now UNCH YTD. Energy led the way Monday as the best performing sector. The XLE rose 1.4% Monday and like the S&P 500 another session like today will lift it out of negative YTD territory. Like many individual names in the group it is coming up to some critical junctures. The ETF is making its way up to challenge its 50 day SMA which aligns with the round 80 handle. Examine how it reacts when that level is tested. Materials were also on the march upward today with some severely oversold names making some noise. X a former steel darling on the street has undergone a relentless bruising off more than 54% from a recent 52 week high. It is lower 11 of the last 12 weeks and in the second half of last year looked like it would regain its former glory. Two sessions in particular, which were accompanied by the largest daily volume since last July, 7/30/14 and 9/17/14 gained 19.4 and 10.1%. Monday X bounced almost precisely off the round 20 handle, negating any chance of its slipping into teenager status, at least temporarily. Perhaps rival NUE is a better play down less than half of what X is from its recent 52 week high, but its chart looks like an upside down flag, a bearish sign. Earnings are reported tomorrow.
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