Markets acted pretty decently Friday, as bulls probably would have taken todays action after seeing the tech carnage after hours Thursday. Many bulls, including myself, probably have been grappling with their own confirmation bias and come away very impressed with the price action. After all that what is most important. There have been other recent instances with crude for example rising 8% this week after the negative Doha meeting last weekend after being down 6% Sunday evening. The Nasdaq finished firmly in the red losing .8% for the day as heavyweights MSFT, GOOGL and SBUX all dropped 7.2, 5.4 and 4.9% respectively after delivering numbers yesterday. Looking at GOOGL perhaps some foreshadowing was given with Tuesdays ugly bearish engulfing candle. MSFT did manage to reverse somewhat near its 200 day SMA. For the week the Nasdaq fell .6% and YTD is now lower by 2%. The S&P 500 was UNCH Friday, and higher by .5% for the week but unable to CLOSE above the round 2100 figure. On the weekly chart it recorded a bearish shooting star candle and on a YTD basis it is now higher by 2.3%. There was plenty of bifurcation in the sector performance this week with the XLE gaining a robust 5.5% advance (it registered its first weekly CLOSE above since September ’14), its second best showing behind the week ending 3/4 which rose 6.5%. On the downside capital has been fleeing the utilities as the XLU lost 3.2%. Right in the middle off all the major sectors the XLY, or discretionary retail group was UNCH for the week. The consumer continues to be very picky or downright tapped out. The second best performing group of the week were the financials with the XLF higher by 2.8%. Below is a play from the group SF which we profiled in this Thursdays Game Plan. The stock has recorded back to back double digit gains and this week rose everyday. The laggard still does remain 43% off 52 week highs.
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