Markets scored strong gains, reminiscent of the old acronym “Mutual Fund Monday”, as the benchmarks sprinted out of the gate and were very stubborn relinquishing any of the move. Bears were most likely under the impression that a big reversal would take place, with hallmark bearish traits being starting off powerfully and CLOSING hard upon the lows. There must be some concern tonight among them but to be sure the markets still have work to do and both bull and bears have been frustrated. Most encouraging was the action in the Nasdaq as it led adding 1.4% and reclaimed its 50 day SMA after spending just 2 sessions underneath it. Bulls have to wonder if this is becoming to commonplace and to be expected. The Russell 2000 rose by 1.5% and with last Fridays lows still maintains a nice series of higher lows this year and it did complete a bullish morning star pattern off its 200 day SMA Monday. The small cap, domestic oriented benchmark which was just above the UNCH line as of Friday on a YTD basis has plenty of catch up as peers like the S&P 500 and Nasdaq and Dow have advanced between 10-17% thus far in 2017. Looking at individual groups it was technology and financials that led the way and energy was the lone major S&P sector to fall today. Below is the very respectable chart of HRB and how it appeared in our Wednesday 8/9 Game Plan. I am a big proponent of the round number theory and this name consolidated a robust move from 20 to 30 well the last 8 weeks and now one can initiate a new position or add to above a long weekly cup with handle trigger of 31.80.
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