Markets rose Tuesday as the Nasdaq advanced 1.3% and is rapidly closing in on the round 4800 handle that doubles with the top line in a bullish ascending pattern. The S&P 500 closed above a a 2065 double bottom pivot, which it traded above intraday last Friday but failed to close above, finishing higher by 1.1%. Could it be a fake out? Anything is possible these days. Indexes flipped the script on Tuesday with the energy and materials sectors the only ones in the red. They have been leading for sometime now with the lagging utilities and healthcare groups showing the way today along with information technology. The XLV is right back into the ascending triangle we spoke of yesterday and is back above the round 70 handle. Could have been a bear trap. The XLU on the other hand looks like it may be the start of a bearish head and shoulders pattern with the right clavicle forming slightly above the left at 50 day SMA resistance. Could it be a canary in the coal mine situation with a sell off in the group forecasting rate hikes 6 months into the future? Speculating is a fools game and just pay attention to the price action. Was curious to see than 9 of the top 10 names in the XLV finished higher by more than 1% while big leader BIIB fell by a couple bucks. That round 400 handle playing tricks on the stock and it looks like it wants to move back toward the 390 number where bids should materialize.

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