Markets acted strong Wednesday behind the Nasdaq and with each day it outperforms it sends a message that the benchmark has put its recent worries behind it. Today it recorded a nice gap up and advanced 1.1% as it inches closer to a 6313 double bottom trigger. It registered its first 4 day winning streak since late May and is higher by an impressive 1.8% this week so far. The S&P 500 is back above a 2440 bull flag pivot and looking back with a little longer view on can can view the 6/29 session as a successful pullback into a bullish ascending triangle pattern that formed in conjunction with the round 2400 number. The breakout has a measured move of 80 handles and it is higher by .8% so far for the week and has now also successfully retested its rising 50 day SMA each month this March through May. Looking at individual groups, Wednesday technology led the way as the XLK recorded a 1.3% jump, and just a few sessions ago it was 5% off recent 52 week highs and now sits just 2% under it. Below is the tech chart of PYPL and how it appeared in this Mondays Game Plan, and today it broke above a bull flag trigger after AAPL said it was adding it for payment on iTunes. Not long ago AAPL announced it was getting into the payment services business and when PYPL barely budged that was some foreshadowing to higher prices going forward. Perhaps this is also a signal that it underestimated this competitor in the space. The stock has powered higher following a 7 week coiling period with all seven CLOSING within just .14 of each other the weeks ending between 2/24-4/7.
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