Markets put in another lackluster session Tuesday as the Nasdaq and S&P 500 rose by .1%, and both of those benchmarks are now on six session winning streaks. The Russell 2000 was flat and the Dow rose .4% as the price weighted index was rewarded with the big move in BA. The stock blasted above a bull flag trigger of 300 last Friday and has been melting up ever since. The measured move is to 335 so there is still some juice left in the tank. It is higher impressively 20 of the last 27 weeks and powered higher last week as it broke through a very taut range with the 3 weeks ending between 12/15-29 all CLOSING within just 1.16 of each other. The break above a cup base trigger of 162.61 for IBM is helping the index along too. Eighteen of the thirty Dow stock are now trading above double digits.
Looking at individual groups it was the healthcare and financial names that were standouts with the XLV rising 1.1% and the XLF adding .8%. The XLV is already higher by .8% this week, very strong following last weeks move up of 3.1% and the XLF is showing nice momentum following its break above a small bull flag which has another 1.5 handles to run. The healthcare sector was supported by fine action in the biotech arena with the XBI advancing nearly 3% Tuesday and on Tuesday completed a handle on its cup base. The potential trigger is 88.92 just under the very important round 90 number. That area was rejected strongly dating back to the weeks ending 7/17-24/15, and a break above there could really ignite the space. The consumer staples, materials, technology and energy basically sat out todays lukewarm move higher and it was the utilities which were the clear laggards on the session with the XLU falling 1%. Volume has been heavy on the recent selloff making the rotation out of the group easy to spot. Put this sector in the penalty box until it can CLOSE above its 200 day SMA.
The formerly moribund auto group has been firing on all cylinders as of late, pun intended. Of course I am purely a technician so I do not spend time on the why, just the PRICE action. Perhaps its the self driving, or electric seemingly going more mainstream all the time. It does not matter to me. The group is behaving bullishly and we know this because price is truth. Whether you look at TSLA which has continuously found support at the very round 300 number dating back to last April, or the better chart complexion of GM, the action is undeniable. Certainly there are names that play a supporting role in the parts area, and below is the chart of APTV and how it appeared in our Wednesday 12/13 Game Plan (former ticker DLPH). The stock broke above an 84.81 double bottom trigger on 11/20 and retested that breakout and held firm with an initial retest of its rising 50 day SMA in mid December. Adding to the bullish stance it did fill in a gap on 12/14 from the 11/17 session and is now on a current 6 day winning streak up by 9% in the timeframe.