Markets once again traded close to the UNCH mark as all eyes are on the S&P 500 to see if it can penetrate the round 2400 number. Other noteworthy watchings were the Russell 2000 gaining .3% and more importantly climbing back above its 50 day SMA. Both of the two previously mentioned benchmarks and the Nasdaq have all put in four session winning streaks and the S&P 500 did fill in the gap to the upside from 5/16, so that is one more obstacle to overcome. But if it can do so the move can be powerful. The financial sector was the clear winner Wednesday with the XLF higher by .8% and the runner ups were healthcare and the utilities. We normally like to add in our first paragraph plays that have played out. Today we will give a different lesson to a healthcare name we looked at in our Monday 5/22 Game Plan. Below is MNTA and it is a good example of why one should await PRICE confirmation instead of attempting to anticipate it. A good looking bull flag formation emerged above both its upward sloping 50 and 200 day SMAs but anyone who tried to be cute and front run the idea was hurt as it lost nearly 5% on Tuesday. Within technology the semiconductors took a well deserved rest but some internet names picked up the slack. Names like ZG are having a nice run with the week ending 5/5 blasting through the round 40 number on a weekly basis that was holding it back dating back to November ’14. Interesting to see some bifurcation within the group with some travel names that looking back would have made for some fruitful pairs. EXPE is higher by 26% YTD while TRIP has fallen 12%.
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