Markets were little changed Tuesday with the Nasdaq underperforming the S&P 500 slightly lower by .15%. Intraday action on the tech index was impressive however as it rallied almost back to UNCH after trading as low as 1% early on. It did undercut the round 5000 number Tuesday but with its comeback did manage to CLOSE above it. We still are very small as we feel the markets are in need of a pullback, although we have been around long enough to know that they rarely do what you want them to do. That being said the Nasdaq is down 9 of the last 14 weeks, however 2 of the 5 higher weeks were up better than 3%. Volume was just about average in those instances however. The S&P 500 produced a doji or spinning top candle which usually indicates that the prior move could be weakening and maybe we found a short term bottom. The 2080 handle has been pretty good at holding CLOSES as it did that on 4/17 and 5/6 after spending time underneath intraday those sessions before rallying. Sectors that advanced today were few with defensive consumer staples leading the way and energy and financials scraping out gains. We have been hearing a lot about the concerning number of stocks below their 50 and 200 day SMAs in recent days and it pays to watch just how these lines act when tested. Take for instance BURL, a somewhat recent retail IPO which reported earnings today. It was on our radar for a break above that line and then through a possible 62.04 cup base trigger. Those hopes were dashed today as it sank more than 8%. A fine example of letting the names push through those 50 day SMAs before venturing in.
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