Markets acted in an almost opposite fashion from Monday as they were in the green from the get go (Nasdaq was briefly red) and remained so. The averages did not however go out quite on the highs, as they did Monday finishing at lows for the session. One negative was the Nasdaq underperforming yet again up 1.1% (S&P 500 rose 1.4%), with the 800lb gorilla AAPL reporting earnings after the close. The 4500 level on a CLOSING basis on the Nasdaq is being defended by the bulls which was important as that was the area that held last August and September. The normal culprits that moved the benchmarks today the most, were energy and materials as oil did bounce off the round 30 figure. Other commodities that rose today were gold, silver, copper and platinum. Impressive was the averages shrugging off China which soured more than 6%. Earnings continue to roll in and many were well received. MMM rose more than 5% and is now 10 handles higher from last Wednesdays doji candle which indicated the downtrend pressure was abating. PG, a staple gained 2.5%. COH a retail laggard which seems to be turning things around jumped by 10%. The last 3 weeks notice how it has found bids appear at the round 30 handle as it finds a floor. FCX provided some momentary relief for Carl but is now sporting a bear flag pattern, and yes even though it is off by 82% from recent 52 week highs it can go lower. Biotechs seem to be pricing in a potential Hillary win with the group acting soft once again. Below is a chart of MDVN from our Game Plan last Friday. The round 40 number was stern resistance and today it broke below the bear flag formation.
This article requires a Chartsmarter membership. Please click here to join.