last week, the market had a pretty good week. Oil came down and the money rolled into techs. QQQQ is already back to where it was 2 weeks ago. The market was pretty steady on Friday, with the Dow down 7.9 points, SPX adding +2.21, and Nasdaq gaining +14.34 points.
SPX
SPX added +2.12 points to close at 1400.38. It closed above the 30-day MA and the MACD flattened.
Nasdaq
Nasdaq gained +14.34 points to close at 2522.66. It pushed the daily upper BB, hinting for more upwards movements. The MACD went higher.
The techs are looking better than the broader market. As some money rolled out of commodities and energy sectors, the techs recovered much fast than the rest of the market. For the new week, I think we could see techs pushing ahead and become the new leaders on the market. If QQQQ breaks above and away from $50, $53 is the next resistance. Semiconductors have been especially strong. Biotechs made a solid jump on Thursday. Metals and mining are still hot. VIX closed below 18 last week and could be looking to test 16 again, which would be good for the market. The financials did a little better last week, but, we need to see a lot more strength in this sector than it had recently shown.
Sector Watch
XLF (financials)
XLF bounced off of the support at $24.5, but, closed below its daily MAs. It still needs a lot of work, especially with the daily MAs still in its new bearish formation. We definitely need to see some continued recovery from this sector to feel more comfortable about the market.
SOX (semiconductors)
SOX had a solid day on Friday, closing the week above its daily MAs and almost catching the daily upper BB. Catching the daily upper BB, could send this sector up even more. QCOM, BRCM, AMAT, and TXN all look strong.
XME (metals and mining)
XME has been a little unstable this past couple of weeks. However, it closed above its daily MAs and the MAs kept their bullish formation. $90 seems to be a resistance; breaking it should induce a new breakout. Coals and steels are still the leaders in this sector.
INX2 (Internet)
With techs going higher, we need to pay attention to the Internets. INX2 closed above its daily MAs. Breaking 280 could induce a jump to catch the daily upper BB. GOOG gained more the $35 last week. AMZN broke above $80 last week; the next resistance should be at around $87.5. AKAM could be trying for a 2nd jump. PCLN has come down a bit after the earnings jump and could be interesting to watch.
BTK (biotechs)
BTK made a solid jump on Thursday. The ASCO meeting was this weekend. There’s been some news out that may affect IMCL, DNA, and AMGN. We’ll see how the market reacts on Monday.
Good night and HappyTrading! ™
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