Indexes put in yet another lackluster session and the proverbial do not short a dull market comes to mind. On the other hand, the bears would say the averages are stair casing higher and they would point out the elevator down is near. Of course they have been waiting for that ride for an extremely long time. Both the Nasdaq and S&P 500 gained near the .2% mark and the Russell 2000 was off by .1%, although the very taut trade the last 7 days is bullish after the 150 handle run up from the 1350 number. The S&P 500 did record a doji candle on Tuesday which does tend to predict a softening of the prevailing move. Keep in mind candles give good clues, but they come secondary to PRICE action as the S&P 500 also recorded a doji on 9/19 and it did not stop its advance. The Dow continues its meteoric rise as it now trades more than 700 handles above its 50 day SMA.
Looking at individual groups, for a second straight day it was the utilities and staples sectors that showed strength. After they each gained 1% Tuesday the gains were more modest today as the XLU gained .5% and the XLP by .2% (technology and energy were the second and third best performing groups). And again in an inverse fashion financials were among the laggards as the XLF fell .15% and was the worst performer on the day. Of course that could all change tomorrow as some banks begin reporting tomorrow among them JPM and C. Transports are not their own major S&P sector but the space seems to be getting some wind behind its back once again. CP is looking to recapture a cup base trigger of 167.62, which was taken out originally on 9/22 and now has the look of a bull flag. FDX is one delivery ahead of CP, pun intended, as it recouped its own cup base trigger of 220.09 taken out on 9/20.
We have been stating now for awhile that consumers have been adjusting their spending habits to things that they can experience. Perhaps some of that money that used to buy retail is now being concentrated into the leisure plays which have been acting well. Below is the chart of NCLH and how it appeared in our Thursday 10/5 Game Plan and that day it sprinted above its 50 day SMA after it was announced that it would be included in the S&P 500 rising 4.3% in huge trade. It now trades right at its double bottom trigger of 58.68 taken out on 10/6. The next few sessions will be interesting to watch as the best breakouts tend to work out right away. The bears will point to the negative candlesticks on 8/8 and 9/1 on the chart here and in addition another shooting star candle was registered this Monday.