Markets one day before the big vote tomorrow CLOSED near lows for the session. It was the Nasdaq that was the most impressive early on with a gain of .7% but was frittered away by the end of the day losing .2%. Looking on the RSI of a daily chart on the index one sees a bearish head and shoulders pattern that began in May with the neutral 50 number acting as resistance on both shoulders. This action underscores the weakness we have been seeing in comparison to the S&P 500. The S&P fell by a similar margin and was thwarted right at the round 2100 number for the second time this week. Healthcare woke up Wednesday with the XLV being the top performing sector for the first time in awhile gaining .3% (the only other major S&P sector to advance was the materials and staples just barely). The utilities lagged as it was the second worst performing sector today, but again the very round 50 number has held firm. In fact it has recorded only one CLOSE beneath 50, albeit barely at 49.97 on 6/7, since taking out the figure on 6/3. Looking on its weekly chart the ETF could be on the verge of something special. The last 2 weekly CLOSES were within just 2 pennies of each other and it will be interesting to see how this week finishes up. Talking about the round numbers there seems to be a real tug of war with crude at the very round 50 number (I use the word very in regards to 50, par and 20 numbers as names that shed teenager status often follow through higher). This to me is weighing more upon the markets than anything else at the moment and todays bearish engulfing candle there was not what bulls wanted to see. For those consumers saving money at the pump it seems few are spending it at DNKN. Below is the chart of the stock and how we profiled it in our Monday Game Plan this week. The stock is lower by more than 5% this week and with little nutritional options I think customers are getting the picture.
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