Markets capped off a volatile week with significant gains. The Nasdaq rose .4% for the day and for the week recorded a robust gain of 3.3% on the second largest weekly trade since the summer of 2011 (week ending 10/17/14 was 1.5 million shares more). The S&P 500 advanced 3.2% for the week and we spoke earlier in the week to wait for a bottoming candlestick to begin entering the markets. The S&P 500 recorded a bullish engulfing week and CLOSED above the round 2100 number for the first time in almost one year (week ending 7/31/15 finished at 2103.84). Looking back on the weekly chart, 3 times it CLOSED the week with a 2099 handle, 11/6/15 and 5/27-6/3/16. So close yet so far. Now the question is will the round 2100 number, we hear so much about, now become support. Very often when prior resistance becomes support a very formidable floor with enable a benchmark or stock to catch its breath for its next launch. As one would think every major S&P sector gained ground for the week, but the winner came from an unlikely source, the healthcare arena. The XLV rose 4.1% and the IBB put in a powerful week of its own 500 advancing 5.5%. Rotation is a healthy development and one can say the transports are on the verge of pulling their own weight, pun intended. The IYT recorded a good looking bullish piercing line weekly candle and below is the chart of FDX we posted in our Wednesday Game Plan this week as it not only recorded a bullish harami on Tuesday, but filled in a gap from March. When ones has a cluster of evidence like that risk/reward becomes favorable. We must acknowledge that peer UPS is acting much better as it is above a 107.31 cup base trigger and sitting at 17 month highs, while FDX remains 11% below its 52 week high.

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