Markets registered a quiet, taut day Thursday consolidating some decent weekly gains as the Nasdaq and S&P 500 rose .2% and the Russell 2000 recorded a bullish hammer candle near the 1430 number which it has shied away from on a couple occasions recently. The Nasdaq is now higher 6 of the last 7 sessions including a current 5 day winning streak, yet today challenged the highs of the bearish dark cloud cover candle recorded on 6/26. Bulls wants to see the highs of not only that days high but the highs of the bearish engulfing candle recorded on 6/9 to stop the series of lower highs. It is higher by 2% headed into Friday for the week and I incorrectly predicted it could have formed a bearish head and shoulders pattern, and is a good illustration as to why forecasting from anyone should be taken with a grain of salt. PRICE action is omnipotent. The S&P 500 looks constructive and is nearing a bullish MACD crossover and it is higher by .9% this week headed into Friday and is looking for its first weekly CLOSE above the 2440 handle, which would be above the recent bull flag breakout. It originally took out that formation on 6/19 but lasted just one day, a dour situation, but received solid 50 day SMA support and now has thrust back above the trigger and this could be the start of something good. Looking at individual groups outperformance was headed by the finnies, energy, technology and healthcare. Below is the chart of healthcare play PBYI, and how it was presented in our Thursday Game Plan this week, that was finally able to CLOSE above the very round 90 number today.
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