Markets produced a productive week Friday and it was the Nasdaq that led the way with a weekly 1.9% gain, almost doubling that of the S&P 500 which gained 1%. The Dow which we rarely mention, but had to give a quick mention with its piercing to the upside of the very round 20000 figure (it has recorded 3 consecutive CLOSES above and the longer it stays intact the better for the bulls). On a daily basis it was the Nasdaq digesting the 1% gain on Wednesday and has now finished the last 3 sessions very taut within just 5 handles of each other. The Russell 2000 underperformed Friday falling .3% although on the weekly basis it can be looked at in a benign light with solid rising 50 day SMA support and it did rise 1.3% for the week and now sports a good looking double bottom trigger of 138. It was a rare win for the healthcare sector Friday as the XLV rose by .8%, but more concerning was the action in the XLE as it dropped 1%, doubling its nearest losing competitor as the staples lost .5%. I thought Friday would be a good test for the group as they started out weak Friday. They have started strong many sessions recently only to fade testing the nerve of many shareholders. The XLE lost .4% for the week and fell back below its 50 day SMA for the second time this week as it did the same on Monday. On a weekly basis there was plenty of bifurcation with the materials, financials, technology, industrial and cyclical sectors all gaining well more than 1%. On the downside it was healthcare, staples, energy and utilities all receding. Peering into charts that behaved well this week and should have investors attention is IRM. The industrial play rose everyday this week and jumped 4.3%. Below is the chart and how it appeared in our Wednesday Game Plan. It looks well on its way to creeping toward a cup base trigger just above the round 40 number in the near term.
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