Markets rose Wednesday finishing off session highs, but nonetheless with respectable gains. Both the Nasdaq and S&P 500 reclaimed some round numbers today as the Nasdaq rose .7% and the S&P 500 by .5%. I have been leaning slightly bearish recently but my tone is beginning to change. One reason is the action in the leading Nasdaq, which has been acting just like a leader should. My thoughts were that we were possibly seeing a very long 15 year double top put in on the tech benchmark with a CLOSING high of 5048.62 on March 10, 2000. Respect must be given to the Nasdaq as it has come back to take out the round 5000 number. The longer it stays up here without retreating the more one has to expect that a top is not being made, but rather a potential pause for a sustained move higher. Tops happen rather quickly, as opposed to bottoms which traditionally occur gradually. Energy once again was the best performing group and the resource may be attempting to alert us that the economy may start to regain its mojo from years past. Lagging was the consumer staples sector, a risk on risk off marriage made in heaven. Speaking of long term double tops, this certainly is not a 15 year example but a relevant one anyway from the energy group. MTDR which came public a little more than 3 years ago is just 2% off all time highs and today was stopped just short of the round 30 handle with an intraday high of 29.90. It also reversed from that figure back on 7/1/14 with a high of 29.94 that session. Will it power through? It is higher by almost 8% this week and the prior 3 advanced 4.6, 9.6 and 17.8%. Gushing returns, pun intended.
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