Markets began the week on a strong note with the Nasdaq leading the way higher by .7% and the S&P 500 up .6%, although they did finish off intraday highs made late morning. The S&P 500 closed just above the elusive 2120 figure which has been tough to break above convincingly. Groups you want to see act well in a strong market outperformed, like the financials and healthcare. Conversely sectors that were strong last week which growth investors would be concerned about like the utilities and staples underperformed, albeit rising a bit. Energy feeling left out at the moment rose 1% Monday, and the XLE is attempting to rid itself of its current 7 week losing streak a feat not accomplished in the last 5 years. The last 4 weeks for the XLE were poor technically as each week CLOSED near the bottom for the weekly range, a bearish trait. The homebuilders are getting their act together with some recent good news acting as a tailwind. Looking at the ITB, which is more of a pure play ETF on the builders than the XHB, it reclaimed its 50 day SMA last week and is now sporting a cup base trigger of 28.92. Monday however did record a doji candle which suggests a pause in the trend may be occurring. Some individual names are looking solid and below is how we profiled MTH in last Tuesdays Game Plan. It too took out its 50 day SMA and looks poised to wrestle with round 50 handle sometime soon in the near term. MTH is now up 3% from the recommended trigger.
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