Do not look know but the Nasdaq is back above the round 7800 number, more importantly on a CLOSING basis, something it was unable to do on the 6/20-21 sessions. The latter finished nearly 100 handles off its intraday high. It now negates the bearish engulfing candle from from that 6/21 day, and bulls are feeling energized. Their is truth in PRICE, and as good as it looks I would still like to witness a couple of CLOSES above 7800. I am giving my own healthy skepticism which is probably a very good contrarian sign that we are going higher.
The S&P 500 is has now gained ground 8 of the last 10 sessions and the last 6 advancing days CLOSED right at the top of the daily range. The most hated bull market keeps moving right along ignoring all opinions. It is looking to finish above the round 2800 number for the first time since 2/1, and the action since the beginning of February can now be interpreted as a bullish ascending triangle and a move through 2800 carries a measured move to 3050.
Technology was a welcome winner Thursday. The XLK rose by 1.6% and is now just above a 72.53 short cup base trigger. The very tight ranges the first three days of the week we mentioned yesterday, could well have been a short rest to gather stamina and resume its uptrend. Volume is still a bit on the light side, but the ETF is up 2.2% this week heading into Friday and looking for its second consecutive 2% plus weekly gain as it jumped 2.3% the prior week.
It is still a bit premature to declare the staples and utilities as lagging. But this is another session were the were the worst performers of the major S&P sectors. The XLP and XLU were very close to the UNCH mark Thursday. The XLP is at a critical juncture here as it sits right at 200 day SMA resistance, a line it has been below for 5 months with the exception of a couple days in February that proved to be a bull trap.
The economy continues to chug along and of course there will always be arguments on both sides of its merit. The quote from Ralph Waldo Emerson comes to mind, “There are always two parties, the establishment and the movement.” Perhaps the naysayers, I am not in the camp, could point to the strength in the chart below of KAR, a used car auctioneer. This is how is was presented in our Tuesday 7/10 Game Plan. It is on a 6 session winning streak, with each day CLOSING right at the top of the daily range, a hallmark bullish trait. A cup base trigger of 56.85 was taken out on 7/9 and it is demonstrating great action POST breakout, just what you want to see from fledging breakouts. Is the firmness in the stock an indication of the reluctance to purchase new vehicles? From a trading perspective who cares. The chart is driving higher, pun intended.