Trading Places with Tom Bowley

All-Time High Virus Spreads; NASDAQ And Dow Jones Catch It

Market Recap for Wednesday, September 13, 2017

Wide participation is a key to sustaining a bull market advance.  We want as many indices, sectors and stocks on a buy signal as possible.  That makes it nearly impossible for bears to regain control of the market as technical buyers show up everywhere.  Two days ago, the S&P 500 broke out to an all-time high.  Yesterday, it was the Dow Jones and NASDAQ that did the same.  The small cap Russell 2000 ($RUT) hasn't yet made its all-time high close, but it's clearly in an uptrend and it's likely only a matter of time before the RUT joins the party:

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Banks Lead Follow Through Rally As They Bounce Off Key Support

Market Recap for Tuesday, September 12, 2017

Financials (XLF, +1.18%) were the primary beneficiary on Tuesday as treasury yields rose.  That typically leads to strength in this sector, with particular strength usually seen in banks ($DJUSBK) and life insurance ($DJUSIL).  Yesterday was no exception and the DJUSBK is featured below in the Sector/Industry Watch section.

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S&P 500 Breaks Out To All-Time High

Market Recap for Monday, September 11, 2017

It was a very bullish day on Wall Street.  First and foremost, the benchmark S&P 500 rose more than 1% to close at a fresh all-time high.  Its previous closing high was approximately 2481.  The bulls left no doubt about this breakout, finishing clearly above that 2481 level - at 2488.  Here's the latest:

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Bifurcated Friday Session For Major Indices, Sectors

Market Recap for Friday, September 8, 2017

The NASDAQ fell on Friday mostly due to a very weak technology sector (XLK, -0.82%).  Computer hardware ($DJUSCR) tumbled as Apple (AAPL) closed well below its 20 day EMA on heavier than normal volume for the first time since its big drop back in the second week of June.  Here's the technical damage on AAPL:

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Healthcare Strengthening With Medical Supplies And Pharmas Following Biotechs Lead

Special Announcement

Tomorrow's StockCharts Outlook Webinar with Greg Schnell and me will be held at 11am EST.  Please join us by registering HERE.

Market Recap for Thursday, September 7, 2017

Thursday's action was just further confirmation of a strengthening healthcare group (XLV, +1.11%).  The group has been outperforming the benchmark S&P 500 index since December, breaking a relative downtrend.  Yesterday, the XLV broke out again relative to the S&P 500.  This remains the best sector to trade/invest in as we're seeing both absolute and relative breakouts on solid volume and with strong bullish momentum.   That last part is important to me because the aggressive sectors have broken out recently with nasty negative divergences on their weekly charts.  Healthcare seems like the real deal.  Here's the relative breakout of the XLV yesterday:

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Energy Rolling Higher, But Will It Last?

Market Recap for Wednesday, September 6, 2017

Energy (XLE, +1.63%) has been the clear leader for the U.S. stock market the past week or so, but I'm not a fan just yet of the recent bounce continuing and morphing into an uptrend.  Keep in mind that the sector - other than renewable energy ($DWCREE) - has been under tremendous selling pressure throughout 2017 and it's easily the weakest area of the market.  The downtrend in the XLE has been well documented in the past, but let's visualize it again:

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Financial Stocks Tumble Ahead Of Hurricane Irma

Market Recap for Tuesday, September 5, 2017

Hurricane Irma may still be well out in the Atlantic Ocean, but its bearish winds are being felt on the shores of Wall Street already.  Irma is a monster and is now regarded as the most powerful Atlantic storm ever recorded and it's on a path to Florida.  Property & casualty stocks ($DJUSIP) have taken notice with many selling off big time on Tuesday as the hurricane approaches the United States.  This storm, on top of the catastrophic damage from Hurricane Harvey in Texas and recent profit taking in the industry, has sent the DJUSIP plummeting, down 10% over the past month.  Check out the chart:

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Semiconductors Fail At Key Resistance, Cause NASDAQ To Fail

Market Recap for Friday, September 1, 2017

The latest government nonfarm payrolls report came and went.  The number was a bit disappointing, but the U.S. stock market handled it quite well and the bond market surprisingly sold off.  Normally, you'd see traders move into bonds on weak economic news.  That was the case in early trading, but there was a recovery by day's end.  The Current Outlook section below highlights the latest test of 10 year treasury yield ($TNX) support.  That bounce in yields helped to lift financials (XLF, +0.28%) during the first half of the trading session Friday, but afternoon selling derailed many areas of the market, including financials.  The XLF appears to be printing a bottoming head & shoulders pattern on its hourly chart that will be important to follow today:

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NASDAQ 100 Closes At All-Time High....Are We Bullish Or Bearish? That Depends On The Chart

Special Note

Today marks my 2 year anniversary of writing daily articles here in Trading Places.  It's spanned some 500 articles.  I love what I do and am completely blessed to be able to write about something I'm very passionate about.  I'd like to ask a favor (actually two favors).  First, please subscribe if you haven't already by scrolling down, typing in your email address and clicking on the green "Notify Me" button below.  Then my blog articles will be automatically sent to your email address the moment they're published.  I encourage you to do this for your other favorite blog authors here at StockCharts.com as well as that's our only way to know that you enjoy our work.

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