Markets finished near session lows after lukewarm gains early on, classic bear market behavior. The Dow which we do not discuss much because we think of it as irrelevant today did pierce the very round 18000 number briefly and has declined 5 of the last 6 sessions. Notice that number held firm on Monday, and one should keep a close eye on that figure on a CLOSING basis going forward. Looking a bit further back that level was important as it was a double bottom breakout above the large round figure back on 7/8 (if it were not for AAPL today the loss would have been stronger given that it is a price weighted index). The Dow went on to plow higher by 600 handles during a 9 session winning streak between 7/8-20. Speaking off round numbers the Nasdaq was stopped cold at 5200 the last 2 days after finding support at 5100 Monday. The Nasdaq rose .4% Wednesday and the S&P 500 lost .1%. Only 3 major S&P sectors rose today and technology was the best performer as the XLK rose .5%, this time AAPL is to thank once again as it is the ETF largest holding comprising more than 13%. Utilities were the second best actor with the XLU higher by .4%. It is looking at a 200 day SMA test and keep in mind over the last one year period it is still the best performing sector so perhaps a bounce will occur there. Below is our take on the chart and for the last month has been showing some bullish divergence even though it has surrendered the important 50 number. Look for it to reclaim that very round number which was resistance the weeks ending 1/30 and 4/1-8 before breaking through the week ending 6/3. It went on to form a three week tight pattern with 3 weekly CLOSES within just 6 pennies of each other ending between 6/10-24 which resulted in a 3.7% jump the week ending 7/1.
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