Markets began the week with a bang as the major benchmark finished higher, albeit well off session highs. The S&P 500 reversed precisely at the round 2100 number and price does have memory and although I believe the level will be taken out, perhaps resistance at that line is firming. It has been unable to make much headway above that number and the fact that it has not made a new 52 week high in 13 months has investors cautious. If one wants to paint a bullish picture it could be the performance of the Russell 2000 which was the best actor Monday with a gain of 1.1%. The Nasdaq rose .8% and the S&P 500 advanced .6%. The only major S&P sector to lose ground was the utilities which dropped .2%, but talking about round numbers notice how it bounced almost exactly at the round 50 number, which is now a firm line in the sand. The day had a risk on feel with the 3 best sectors today being the industrials, materials and energy which each gained .9%. The volatility we are experiencing here near all time highs most often is indicative of topping formations, yet cash with portfolio managers remains excessive. When markets are this sensitive to Brexit news one has to be careful. We did hear of some bullish energy calls with RJF calling for an $80 number by 2017. If that were the case some best of breed names in the group like a PXD which we profiled in our Monday Game Plan could benefit handsomely. The stock did not participate today showing weak relative strength but the name does offer good risk/reward here with a tight CLOSING stop below last Thursdays lows.

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