Markets displayed some muscle Tuesday as it looked like the previous 3 intraday rollovers into the close were going to exacerbate recent weakness. The futures were up nicely premarket only to diminish and the sell off early on once the markets opened seemed like it was occurring a bit to early. The Nasdaq lagged slightly with a gain of .8% but it did recapture its 200 day SMA and its chart can be interpreted as a bullish flag or even a cup with handle pattern. With either interpretation it should be resolved in a timely manner as flags or handles do not want to linger on to long. Both are continuation patterns and my belief is we will see the very round 5000 number sometime this month (obviously that is not a stretch as it sits roughly 3% from there currently). The same can be said for the S&P 500 which rose 1% today and its 50 day SMA is quickly approaching its 200 day SMA, potentially recording a bullish golden cross. Energy and materials continue to be the leaders and Tuesday was no different as they jumped 3.1 and 2.1% respectively. Financials are beginning to creep higher and many are on the verge of reporting earnings. Perhaps someone knows something and they were no slackers today as the group “deposited” gains 0f 1.6%, pun intended. Back to energy many best of breed names are behaving very nicely. Below is PDCE which is now up 17% YTD and the chart below is how it was presented in our Monday 4/4 Game Plan. It is now higher by more than 6% from the recommended pivot point.
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