Markets for a second straight session rose after an 11 day losing streak and right into tonights election results. It was the Nasdaq that outperformed higher by .5% and the S&P 500 added .4%, both following through nicely from Mondays bullish morning star patterns. The S&P 500 did bump right into a declining 50 day SMA and the Nasdaq is less than 1% from testing its own line too. This recent strong action comes in the face of some ill received earnings reports. Today they came form the likes of HTZ which lost more than 20% but scored a big intraday reversal. CVS descended 11.8%, but did find a bounce at the round 70 number. Other healthcare names which were smacked down today were ENDP which surrendered 7.6% and is now 77% off 52 week highs. DEPO lost 17% today, yet another healthcare casualty. Former best of breed homebuilder DHI slipped more than 5% Tuesday, so the industries were diverse where we saw some weakness. Just like anything else though, one can spin a story depending on their bias. A bear could say its just a matter of time before the somewhat stable action in the benchmarks gives way, once investors realize the true destruction in individual names. Bulls can point to the resilience that the indexes have displayed in the midst of the carnage. Today witnessed all 11 of the major S&P sectors gain ground with the utilities the firmest advancing .7% and it was energy that was the softest higher by .1%. One can not deny however the anecdotal evidence of solid price action in some of the commodity names. Below is the chart of US Steel and how it was presented in our Tuesday Game Plan. This mornings weakness gave traders the opportunity to take advantage of a retest of not only the very round 20 number, but a bullish ascending triangle breakout as well. Tuesday registered a fourth consecutive daily gain, and although volume has receded with each session, price action is omnipotent.
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