Markets registered another lackluster session Tuesday as the Nasdaq did manage to lead again, but gains were muted. The tech rich index rose .3% and now is carving out a double bottom formation with an entry above 6313, while the S&P 500 was basically flat, off .1% recording a bullish hammer candle of a rising 50 day SMA in the process. The Russell 2000 which we keep an eye on is still in the middle of a bull flag under construction and the 50 day SMA has caught up to the round 1400 number in price. All three of the aforementioned benchmarks are now trading above their 50 day SMAs but the longer it takes for a breakout to the upside the more one has to be cautious. Are the indexes just running out of steam up here? Looking at individual groups energy and technology led, the only two of the major S&P sectors to gain ground Tuesday, and it was the finnies that lagged with the XLF off by .8%, after interest rate hikes were in question according to one Fed official. Technology is a very important group as it contains many crucial subsectors, such as internet, software and semiconductors. When these type of names thrive is sets a “risk on” tone which tend to give an overall lift to many other groups. Below is the chart of LOGM and how it was presented in our 7/7 Game Plan. To be clear the 103 trigger was never hit, however it is now at an inflection point as it deals with the round 110 number that was not only a cup base trigger, but also a weekly double bottom pivot in a base that began the week ending 11/25/16. Look to see if the bullish falling wedge pattern can be taken out to the upside with a buy stop above a 111.50 trigger which would carry a measured move to 126.
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