Markets once again seemed like they would finish, but a late mild push prevented that from occurring. This recent action of CLOSING off intraday highs is not positive, but one has to be non biased and realize they are not backing off either (today the managed to finish near highs for the session). The Nasdaq and S&P 500 are sporting bull flag patterns, but remember these formations are just circumstantial evidence. The only thing that matter is PRICE confirmation, and therefore one can look at a breakout or breakdown as the DNA, the conclusive proof. The Nasdaq is still being held back at the round 5500 figure and of course the Dow came within 12 handles of the extremely round 20000 mark. The S&P 500 has now recorded 4 consecutive inside days, and Monday marked the first time in its history that it registered three in a row (h/t @ryandetrick). That very taut tape action normally resolves itself it energetic moves one way or the other. Tuesday it was the Nasdaq that rose .5% and the S&P 500 rose by .4% and the Russell 2000 added .9%. Once again anytime the finnies are among the best acting groups you know the Russell will outperform and it was the XLF which was higher by 1.2%. Consumer discretionary via the XLY was second best gaining .8%. Lagging industries included real estate, staples and energy. With much scrutiny upon the financials and technology as of late, one should keep an eye on the materials. After the group sold off from recent 52 week highs by 4%, the XLB looks well rested and ready to resume its uptrend. Notice how the ETF held the round 50 number today testing a bullish piercing line candle from the 12/15 session, and it has acted well POST breakout from a cup with handle trigger of 49.16 taken out on 11/22. If one looks at the weekly chart the highs made two weeks ago could be interpreted as an add on above a weekly cup with handle trigger that began the week ending 2/20/15 with a potential pivot of 51.79. One of our favorites from the group is VMC and below is how the name was presented in our Monday Game Plan this week. One can now add or initiate a new position above the bullish falling wedge trigger of 128.
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