Markets were muted Tuesday as investors preferred to keep their powder dry before the big vote Thursday. If you do not know what is taking place then I am sorry. I refuse to utter the word again. Ranges were very constrained with the S&P 500 trading all day within 10 handles and the Nasdaq by 25 points. The Nasdaq lagged Tuesday higher by just .1% as the S&P 500 rose by .3%. Surprising was the underperformance of the small cap names with the Russell 2000 falling .3%. The energy group assumed a leadership role with the XLE the brightest of the major S&P sectors, advancing by 1.1%, and that was even more impressive as it occurred with a firm greenback. Technology and financials were the second and third best groups which left the bulls feeling sanguine (keep in mind this was with a very poor showing once again by the IBB which dropped 1.4% today and the semis which were rather limp Tuesday). Looking deeper within tech it was the software group that acted anything but. Names in the sector like CSOD are behaving bullishly and the chart below is how it was presented in our Tuesday 6/14 Game Plan. ADBE reported earnings after the bell and at the time of this writing was off by 3% in extended hours and HP was higher by 5% so perhaps tech is a wash starting Wednesdays session regarding the earnings reactions. The bearish engulfing candle on the GLD from last Thursday is now confirmed and the ETF is lower by 2.5% for the week so far. The intraday high on that engulfing candle of 125.67 was almost precisely a potential double top from the intraweek high of 125.58 the week ending 1/23/15. Transports “delivered” some off putting news with CP and WERN reducing guidance and FDX down after hours after reporting earnings.

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