Markets once again took investors on a ride with a big move higher as the Dow and S&P 500 rose by 1.4 and .8%, and the Nasdaq tacked on .7% and the Russell 2000 sat the party out finishing near the UNCH line. The Dow is now on a 5 session winning streak and on Tuesday flew above a bull flag trigger of 23600 which carries a measured move of 1400 handles which would touch the very round 25000 figure. Heading into Friday it has gained 3% which if it holds would be the best weekly gain all year and best since the weeks ending 11/11 and 12/9/16 which rose by 5.4 and 3.1% respectively. For all the hype about how crazy the market has been to think the best weekly gain for the Dow before this week in 2017 was a 2.2% gain the week ending 9/15 puts things into perspective. The Nasdaq is underwater for the week so far to the tune of .2% and the S&P 500 has added 1.7%.
Looking at individual sectors the rally was broad based with each of the nine major S&P sectors gaining ground. The best actors hailed from the energy and industrials with both the XLI and XLE higher by 1.6 and 1.5%. Both of their charts have very different trajectories with the XLE still 12% off its most recent 52 week highs and the XLI right at all time highs. The industrials look excellent as the 4 week losing streak which lost a very modest combined 3.5% the weeks ending between 10/27-11/17 is now a thing of the past. The ETF is easily enjoying its best weekly gain of 2017 higher by 4.2% heading into Friday and is the firmest advance since the stunning 8.1% election inspired jump the week ending 11/11/16. It has firmed up since bouncing off the round 70 number almost precisely on 11/15 and successfully retesting its 69.68 cup base trigger originally taken out on 9/18.
Energy has behaved well this week following a 1% drop this Monday. Since then it has gained each session with volume growing with each successive day and the XLE is now higher by 1.8% heading into Friday and today recaptured its 50 day SMA which has been sloping higher for 3 months now. In fact volume this week so far with one day left is nearly double that from all of last week, of course that was holiday shortened but still very impressive. Below is the chart of a leader in the space PSX and how it appeared in our Tuesday 11/28 Game Plan. This Warren Buffett favorite, or maybe it is not anymore, I just see the truth in price alone, is now trading at all time highs and quickly approaching the very round par figure. It is higher 12 of the last 14 weeks and this week has jumped another 4.2%.