Markets concluded a positive week Friday with a relatively quiet session. The Nasdaq rose .4% and its progress was halted at its 50 day SMA which also produced a spinning top candle which could indicate exhaustion in this recent strong move. It has formed a symmetrical triangle formation which can break either way. For the week it rose 2.6% and YTD now it has risen 2%. The S&P 500 was higher by .1% and also recorded a spinning top candle Friday which is a bit more important as it can potentially be a double top with the 9/17 session at 2020. For the week it gained 3.3% and YTD has now declined 2.1%. The old adage goes that the markets climb the wall of worry. Perhaps we can say the current scenario is an entire mountain range. I have listened to concerns of the high yield market, margin debt, issues in Europe’s economic powerhouse, Germany, with the recent developments with VLKAY and DB. Icahn warns over potential doom. Tune out the noise folks and focus strictly on price action. I am ambivalent at the moment with both bull and bear arguments being justified. I am leaning long and did some buying this week and I am beginning to see some good looking patterns which have been almost non existent as of late. It concerns how the biotechs have gone south, prior to that the leading semis took it on the chin. Sure energy had a marvelous week and for the first time in awhile the transports are beginning to show some strength. The IYT had only its third back to back weekly gains this week since late February. Best in breed UNP put up consecutive weeks higher in the 6% neighborhood. Autos and auto parts are beginning to look fitter. Below is how we presented FCAU in last Thursdays Game Plan.

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