Markets acted decently as it was the Nasdaq that stole the show higher by .7% and has now recorded three consecutive strong Monday finishes with the 4/17 and 4/24 sessions gaining .9 and 1.24% respectively. Technology itself led with the XLK up by .75% (the bigger names like AMZN GOOGL and FB had the mega cap tech names rising even more with the Nasdaq 100 up almost 1%) and the ETF is now higher 13 of 17 weeks this year so far and is higher by 3.8% the last 2 weeks alone. The S&P 500 did move up .2% Monday and the Russell 2000 by .5%. Lagging which is becoming a theme were the staples, utilities and perhaps the Barron’s roundtable which was almost unanimous in their disdain for both sectors will ultimately be proven correct. Financials were the second best performers with the XLF jumping .5%, but the group still has some work to do as the chart shows a declining 50 day SMA and a possible bearish head and shoulders developing with a trigger below 23 which would have a measured move to to 20.75 which would fill in the 11/9 election gap. Also contributing to techs dominance Monday were the strength in biotech’s and semiconductors. Software names continue to exhibit firmness and of course as with any industry their will be bifurcation. One has to look no further than MANH which used to be a best of breed name is now a clear laggard. A name that used to be a laggard but went from a negative to a positive was SPLK. Below is the chart and how it was presented in our Tuesday 4/25 Game Plan. It is now above the double bottom trigger of 63.62 and if it can clear recent highs of 66.46 it will be at highs not seen since November ’15.
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