They say its not how you start but where you finish. That phrase applies to markets as well. Thursday early on looked very impressive, but gains were hacked away at as the day went on. Indexes finished well off highs for the day and made a series of lower highs and lower lows throughout. The Nasdaq added .3% after being higher by 1.5% near the start of trade. The very round 5000 number looks like it may be digging in and going to be tough to pierce to the upside since that emphatic break below on 6/29. The last 2 sessions have CLOSED in the lower half of the daily range. The S&P 500 has had a long, comfortable date this week with its 200 day SMA, touching it each session this week. That coziness will resolve itself very soon. For the week heading into Friday the Nasdaq has declined 1.7% and the S&P 500 by 1.2%. As we discussed in our opening paragraph last night this bull is maturing. The long, heavy lift the Nasdaq has been carrying seems to be getting heavier by the day. An optimal scenario for the bulls would have been a flush lower at the open and a furious frenzy of buying into the close resembling capitulation. Obviously that did not transpire. Sectors leading the lukewarm charge today included groups growth investors would agree with. Healthcare, consumer discretionary and financials each tacked on roughly 1% Thursday. PEP mirrored the days action well, originally firmly higher after a well received earnings report, with gains “fizzling” pun intended into the close. Interestingly some high profile names did not participate today with the likes of AAPL and AVGO. We have spoken of the semiconductors shortcomings but a name we were WRONG about in last nights Game Plan was hit today and below is how it appeared in the report.
This article requires a Chartsmarter membership. Please click here to join.