Sending Signals:
As we look over the top three major S&P sector performers over the last one-month period, as this nascent overall market rally gathers steam it is positive to see what is actually contributing. The top 2 groups are discretionary and technology, and in a solid third are the industrials with the XLI higher by 9%. Industrial machinery, transportation services, trucking, building materials, fixtures, and diversified industrials have been responsible for the sanguine attitude toward the group. A couple of names that seem to permeate through the economy and therefore give a genuine feel of how it’s doing are SNA and CTAS. Snap On is now comfortably above both its 50 and 200-day SMAs and this week heading into Friday is handsomely digesting the prior 2 weeks’ combined gain of 14%, both CLOSING at highs for the WEEKLY range. One can look at the chart as a bull flag or a double bottom with handle base with a pivot of 225. Below is the chart of CTAS and with its uniform and other services gives a good feel on not only the economy but employment too.