Markets registered a lackluster week with with the S&P 500 and Dow adding .2 and .1% respectively, but the Nasdaq is seemingly quickly putting behind it the big move lower on 6/9. It rose 1.8% this week, the clear winner, and is now higher by 16.4% YTD compared to the S&P 500 which has moved up by 8.9%. The S&P 500 has now CLOSED the last 4 weeks very taut, all within just 7 handles of each other, and this type of action normally resolves itself in the direction in which it came into, obviously higher. The Dow has been trading tight as well and is on its first current 5 week winning streak of the year, but notice its last 4 have gained by just a combined 1.5%. It has performed well since moving above the very round 20000 number after hitting a roadblock there the 6 weeks ending between 12/16-1/20. One of the bigger stories this week that did not get much attention was the move in FDX. It registered a nice reversal Wednesday following an earnings report, and talking about the round numbers notice the excellent action POST breakout from a 201.67 cup base trigger taken out on 6/2 (the round 200 number prior only held up on a CLOSING basis just one session on 12/13/16). The stock is on a 5 week winning streak gaining more than 13% and sits 1% off all time highs. This name is by far the largest component in the IYT, by almost 14%, and the ETF is holding its break above a double bottom trigger of 167.87 originally taken out on 6/2. The move speaks to a healthier economy, and is vastly outshining peer UPS, with FDX higher YTD by 16% as UPS has slipped 4% so far in 17 (the pair trade was pointed out to me by @AriWald). AMZN is not yet taking over the world of transport. On a weekly basis it was hard to ignore the bifurcation with just two of the nine major S&P sectors (telecom and real estate I tend not to look at) with healthcare and technology up 3.6 and 1.9% via the XLV and XLK and financials and energy souring down 1.6 and 2.9%. Below is the chart of RGEN, not to be confused with RGEN, and how it was presented in our Thursday 5/25 Game Plan. The 31 year old healthcare play hit an all time high Friday and for the week sprinted higher nearly 16% in the best weekly volume in one year. It also recorded its first weekly CLOSE above the round 40 number in almost 2 years dating back to the week ending 7/24/15 and is now just above a 42.58 long weekly cup base trigger.
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