Markets displayed some more bifurcation Wednesday with the Nasdaq taking control higher by .7% and the Russell 2000 falling by .5%. It was refreshing to see the Nasdaq lead, but one session is a start but we will need to see continued strength. The tech rich index did bounce off the round 6100 number as it has for the last month but still remains just underneath its 50 day SMA. Looking within technology it was the semiconductors that shined today and this group has been battered as of late and more strength in that particular sector could go a long way toward helping the overall tech tape. The XLK was the best performing of the major S&P sectors today with the ETF gaining 1% and it was healthcare taking the runner up with the XLV adding .6%. Energy was hammered Monday and the XLE which was stopped at its downward sloping 50 day SMA was off by 2%. If one turned that chart upside down it would be a beauty. The utilities were the second worst actor with the XLU now off by .9% heading into Thursday for the week and looking at a possible third consecutive weekly decline. That is a feat the fund has not done since the weeks ending 11/27-12/11/15. The ETF is on a 6 session losing streak, and lower 11 of the last 13 days, since a bearish engulfing candle on 6/16. It is off a quick 6% from most recent 52 week highs and the safety trade may be unraveling, as interest rates look to be on the rise and the financials will benefit. Below is one of my favorite names in the space, FRC and how it was presented in our Wednesday 6/28 Game Plan, that recently took out a bear flag and is now defending the very round par number respectably.
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