Markets concluded another productive week Friday with the Nasdaq UNCH and the S&P 500 lower by .2%. The Russell 2000 was the clear laggard losing 1.1% and is now back below its 1415 cup base breakout and that normally is not a great sign when a breakout fails apart so quickly. We know the best breakouts tend to work out right away. The Nasdaq rose 2.3% this week after the prior week put up a respectable 1.8% advance, and if bears wanted to holler at something they could point to the bearish counterattack candle recorded today, but I have found that candles have been much better at predicting bottoms than tops. For example look at the doji candle the Nasdaq registered on Monday this week. That candle will often indicate at least a pause in the prevailing trend if not an outright reversal. It also recorded bearish engulfing candles at all time highs on both 3/21 and 4/5 and has negated each one. The S&P 500 CLOSED the last 4 sessions all within just four handles of one another, a bullish trait even with todays bearish engulfing candle of its own. On a weekly basis only two of the major S&P sectors lost ground with the utilities shedding just five cents and the XLRE slumped 2.1%. As the earnings keep coming hot and heavy there has been some consistency to the downside with the staples group. PG, KMB and CL all come to mind and all three fell this week, albeit mildly. CL did record a nice bounce of the round 70 number Friday, PG fell 2.5% on Wednesday filling in the gap from 2/14 and KMB looks the best of the three but would feel better if it could recoup its 50 day SMA. On the winning side for the week was healthcare and technology up 2.5 and 2.3% respectively as they were the best performers. One name that put in a robust week in the tech space was JNPR jumping 8.2% in the best weekly volume in years clearing the round 30 number. Below is the chart of how the “old tech” play was featured in our Thursday 4/27 Game Plan. The trigger was not hit but this name looks ready to magnetically move toward the 32.49 cup base pivot and potentially much higher.
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