Markets displayed resilience Wednesday and one is starting to feel a bit better each day as the Nasdaq continues to show the way. One day after a very impressive reversal it followed through smartly rising 1%. The tech rich index now has the look of a cup base pattern under construction and is just 1% off recent all time highs. A move above 6460 would be a breakout and negate an ugly bearish engulfing candle from the 7/27 session. The S&P 500 reclaimed its 50 day SMA today rising .5% and the Russell 2000 gained .6% and for the ninth day in a row has CLOSED at the highs for the daily range, a bullish trait. The rally was broad based looking at individual sectors as financials showed some vigor with the XLF higher by .3%. The strong private jobs report could lead to a vibrant economy and give the banks the leverage to increase rates. For those who believe strongly in CLOSING prices the recent weakness came after a failure to break above a cup base trigger of 25.40, which missed by one penny on 8/4 and was backed up by a bearish shooting star candle on 8/8. Technology was upbeat once again Wednesday with the XLK up .7%. The resurgence of the Nasdaq can be attributed in large part to the semiconductors and the SMH broke above a symmetrical triangle trigger of 87 today and targets a move to 96. ADI produced some enthusiasm in the group after an earnings report delivered a gain of 5.2%. We mentioned XLNX in our opening paragraph yesterday, and below is another name showing some toughness. MU which was profiled in our Thursday 8/24 Game Plan is higher by more than 4% this week thus far. More positive signs were the staples and utilities among the worst sectors today, keeping company with the horrible energy space.
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