Markets fell for a second consecutive session Wednesday but benchmarks ended the day off session lows with the Nasdaq falling .3% and the S&P 500 by .4%. We will speak of the Nasdaq as its YTD gain of 4.8% more than doubles that of the S&P 500’s 2% advance. The action on the Nasdaq’s daily chart look a but suspect but a peek at the weekly looks very constructive. After the combined 5.5% move the 2 weeks ended 2/6-13 it has traded very taut and if the week closed today it would be 3 weekly CLOSES with all being within .13 of each other. Remember tight trading is interpreted as bullish and even more so after a big run. It shows a reluctance of sellers. Today selling was broad with the only sector able to eke out a gain being the defensive healthcare group. Select momentum names were on fire today with BABA and GPRO advancing 5 and 7% respectively. Notice BABA bounced almost precisely off the round 80 handle the last 2 days. Another momo name that one can keep an eye on and not much talk has been made about the AAPL/TSLA connection. But talk of the tech giant seriously eyeing a move into the car market may have been partly responsible for TSLA’s decline. It now rests 31% off recent all time highs. I think one can gain clues going forward just how serious AAPL is with this car talk. The louder the chatter the more the TSLA performance will suffer perhaps.
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