Markets keep grinding higher and the classic definition of a bull market lives on, as they say you must pay higher prices to get back in. Very encouraging to me is the Nasdaq action as it continues to lead, with not only the FANG names carrying the load (NFLX has to be admired with their earnings however) but the semis continuing to firm. The SMH has followed through nicely upon its 104.06 cup with handle breakout from 1/17, and the ETF is now on a current 8 session winning streak. Internet and computer services names helped the tech rich index along too with HPE and HPQ catching upgrades and GDDY pushing nicely off the round 50 number and that name is higher a very impressive 15 of the last 16 weeks. The Nasdaq rose .7% and is now a very lofty 500 handles above its rising 50 day SMA. The Dow was near the UNCH mark and the S&P 500 and Russell 2000 added .2 and .3% respectively.
Looking at individual groups it was the utilities that performed the best as the XLU rose by 1% as it seems to be putting up a good fight at the very round 50 number. It is due for a bounce, how much life is left in the ailing cat is anyones guess, but most likely it is little. To me the daily chart looks like a bear flag and a strong CLOSE underneath 50 would have a measured move to 45. The cyclicals and technology were the only other healthy actors of the major S&P sectors with the XLY and XLK higher by .8 and .5%. Everyone else finished near the UNCH mark or lower with healthcare and staples lagging. The XLP fell .3% and the XLV by .5%. Both of those ETFs may have been one offs as each of their top holdings were hit hard today after earnings reports. In healthcare the XLV was affected heavily by JNJ falling 4.3% and comprising of 11.7% of the ETF and PG hit the staples as it makes up 12.2% losing 3.1% Tuesday.
We have always been big proponents of round number theory here at ChartSmarter and we see great examples all the time of this. Stocks will often hesitate around the round figures, and once pushing through, they often become support. The very round numbers to me that I like the most are 20, 50 and 100. Below is the chart of VSH, an electronics play from our Wednesday 1/10 Game Plan. This name flew above the 20 number, shedding its teenager status the week ending 10/6/17 which jumped more than 9% on very healthy trade. It went on to gain 15% to 23.50 before making its way back and finding comfort near there on 12/14. It is now on a 3 week winning streak gaining more than a combined 14% and on 1/19 it screamed above a cup base trigger of 23.55. Keep an eye on that level for if it can move back above it one can add to or initiate a position. Admire its tight trade, and last fall during September-October this leader recorded a 16 session winning streak.