Markets put in a lukewarm session Wednesday absorbing the past two days very strong gains. It was the Russell 2000 that once again showed the way up .6% and breaking above a cup base trigger of 1415 and has now advanced 7 of the last 8 days. The S&P 500 was flat and it is now just below its own cup base pivot that aligns with the round 2400 figure. The Nasdaq was also UNCH and completed its second straight day CLOSE above the 6000 number. There are still 2 days left this week but the S&P 500 is on track to record its best weekly gain higher by 1.7% heading into Thursday, since the week ending 12/9 which jumped 3.1%. The Nasdaq is doing slightly better higher by 1.9% thus far. Sectors leading the way today were the healthcare and cyclicals and lagging were the staples and utilities groups. The XLV is sitting just 2% off its most recent 52 week highs and looking left on its chart one can see a big inflection point here with the ETF perhaps running into a triple top in the 76-77 area which were highs dating back to March and June-August ’15, August ’16 and again this March. Or it could be sitting on a big breakout above a cup base trigger of 76.85. A lot will depend on how some earnings reactions are swallowed tomorrow with the likes of ABBV, CELF, ALXN, VRTX, AZN, BMY, ALKS and SGEN to name a few. Some equipment plays were stellar after their reports were digested including EW and IART. One name that reports next week is PCRX and below is the chart and exactly how it was presented in our Friday 4/21 Game Plan. One name that I will be watching closely after their report tomorrow morning is BSX. The stock is just above a cup base trigger of 25.75 taken out today and it has one of the better charts around.
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