Markets:
The Nasdaq flexed its muscles to begin the week adding .6%. It is higher 7 of the last 9 sessions and the two down days registered very taut intraday ranges. Compare that to the sessions that advanced, and one sees 7/5, 7/6 and 7/13 and today all moving up and CLOSING right at the top of its daily range. Monday saw a range of 113 handles top to bottom and always respect when the benchmarks, open on their lows and go out hard on highs. We have mentioned the semiconductors needed to display vigor and that they have as the continue to forcefully defend its upward sloping 200 day SMA. Monday marked its FIFTH 1% or more gain since recapturing the line on 7/5.
The S&P 500 motored past the round 2800 number which gave it pause this year. It advanced .4%, and on its weekly chart is building the right side of a cup base that began the week ending 1/26. A breakout would occur above the 2873 level and notice how tight the weekly ranges have been since mid May (six weeks since the week ending 1/26 have seen intraweek ranges of less than 50 handles), compared to the very wide and loose trading that commenced the first week of February. Seven weeks recorded intraweek ranges of at least 100 handles between 2/2-4/6, and that type of action is considered bearish.
Sectors:
Those nagging staples just keep moving higher in a gradual fashion, just how we like to see it. No erratic moves, simply inclining in a smooth responsible manner. The XLP has gained ground 7 of the last 9 weeks and the taut action is reminiscent of the 6 weeks ending between 12/8/17-1/12/18 which all CLOSED within only .34 of each other. Today the group witnessed strength in the soft drinks with Monster and Pepsi doing there thing with MNST looking for a TENTH straight weekly gain and PEP for a ninth advance in last 10 weeks.
Technology was a bright spot once again despite the reaction from NFLX, which actually rebounded well off intraday lows CLOSING down 5%. It has acted well POST breakout from a 323 double bottom trigger taken out on 4/17, its prior earnings reaction that rose more than 9%. The XLK rose .7% and recorded a bullish engulfing candle, which typically are better received near bottoms. The ETF did successfully retest a cup with handle breakout of 70.52 taken out on 6/1 last month and now sits north of a cup base breakout trigger of 72.48.
Special Situations:
Retail in general has been showing that the US consumer is alive and well. The XRT is making yet another run at the very round 50 figure, having been able to record just 6 CLOSES above it recently (prior to that it had been 3 years since it traded north of 50). It has to be applauded for its tenacity. The stock below has been hampered by a round figure of its own, as 40 has proved to be a thorn in its side several times since March. Today it finished above 40, aided by its connection with Bitcoin most likely, after seeing 30 give it support late last month. The chart below is how it was presented in our Monday Game Plan this week and to be fair it is still more than 50% off most recent 52 week highs. It will be crucial to see in the coming days if former pesky resistance becomes support.