Markets once again finished close to the UNCH mark Wednesday, but off session highs. The Nasdaq was higher by .6% at intraday highs in the early afternoon but gradually lost momentum. The Dow, Nasdaq and S&P 500 recorded spinning top candles which can predict a change in direction. The Russell 2000 which is lagging did register that recent bullish morning star pattern and it needs to start acting better. One does have to admire that the markets did hold up after the political of boards disbanding, and that could potentially be a positive tell. Looking at individual groups it was the materials group that led the way with the XLB higher by 1%, and not far behind were the staples and utilities that were both comfortably higher today with the XLU and XLP advancing .4 and .3% respectively. The XLU is sniffing out a 54.73 cup base trigger which would achieve an all time high and its dividend yield of 3.9% is giving it some income boost to go along with its capital appreciation. Below is the chart of NRG and how it was profiled in our Monday 8/7 Game Plan and it is currently nicely above the bull flag trigger of 25 and has gained more than 100% this year already. Investors affinity for the higher yielding plays recently is an interesting development which bulls and bears could explain in a positive light. Bulls could express their inclusion as the rally broadening out and the bears may say market participants are parking cash cautiously and not being able to stomach the heights the benchmarks are residing at this moment.
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