Markets rose marginally Tuesday after early gains faded, so the day can be chalked off as a lukewarm victory. The Nasdaq and S&P 500 but rose close to .1%. For a second straight session the consumer staples and utilities sectors were the worst performers among the major groups. For such a lackluster day only 3 groups lost ground and perhaps the bears can lick their wounds and point to energy acting well once again as lagging groups should not be what the bulls ordered to lead the benchmarks. Getting back to the utilities which dropped more than 1% Tuesday, the round numbers are coming into play for the XLU. Notice how the round 50 handle was resistance the week ending 1/30/15. The round 40 figure has played its own role dating back to the week ending 8/2/13 where it failed to break through. After finally breaking above 40 the week ending 2/14/14 when the ETF rose 3.6% on timid trade however that number has held up almost precisely the week ending 8/8/14. There most likely will be a test of that 40 handle once again soon. Software play ADBE demonstrated some nice action after an 80.40 cup base trigger taken out on 5/21. This is the chart that was shown in our Monday 5/21 Game Plan. The weak action post breakout would have shaken us out but its a good example of why not to dismiss a name as it reclaimed that pivot Monday and followed through handsomely Tuesday with both session up almost a combined 5%. Both days were accompanied by volume twice the daily average.
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