FACEBOOK AND NETFLIX LEAD COMMUNICATIONS HIGHER -- TWITTER MAY BE BREAKING OUT

COMMUNICATION SERVICES LEAD MARKET HIGHER... Chart 1 shows the Communication Services SPDR (XLC) climbing nearly 2% today to a new record. It's relative strength line in the upper box is breaking out as well.    It's two biggest percentage gainers are Netflix and Facebook.  Chart 2 shows Facebook surging nearly 6% to a new record.  Chart 3 shows Netflix bouncing sharply off its 50-day average and gaining more than 7% on the day.   A third stock in the Internet group isn't one of today's leaders, but may be worth keeping an eye on.

TWITTER MAY BE NEAR UPSIDE BREAKOUT...Twitter isn't on today's leader board.   But while scanning through the list of Internet stocks, its chart caught my eye.  The next chart shows why.   Chart 4 shows Twitter (TWTR) trading above its February and July intra-day peaks which suggests that a bullish breakout may be taking place.  Its relative strength line in the upper box may be breaking out as well.