CONSUMER DISRETIONARY AND TECH STOCKS LEAD MARKET HIGHER -- SOME BIG TECH BREAKOUTS --- QQQ TURNS UP

John Murphy
by John Murphy,
Pioneer Technical Analyst

CONSUMER DISRETIONARY SPDR NEARS OLD HIGH...Stocks are trading sharply higher today following a strong jobs report on Friday and news today of a stronger service economy.   The Dow and S&P 500 are trading in record territory and the Nasdaq isn't far behind.  Nine of the eleven market sectors are trading in the black today with the day's top performing sector shown below.   Chart 1 shows the Consumer Discretionary SPDR (XLY) gapping up today to the highest level in more than a month.   That puts the XLY in position to test its February record high.  Two of the day's strongest XLY groups are auto stocks and cruise lines.   Travel stocks in general are doing well today.   Communication and technology stocks are also leading the market higher.   A number of their stocks are achieving bullish breakouts.

Chart 1

FACEBOOK AND GOOGLE HIT NEW RECORDS...Chart 2 shows Facebook (FB) breaking through its November high to achieve a new record.   Chart 3 shows Alphabet (GOOGL) rising into record territory as well.   They're helping lead the Communication Services SPDR higher.   Technology stocks are also having a strong day.

Chart 2
Chart 3

MICROSOFT ALSO HITS RECORD...Software stocks are helping lead the technology sector higher today.   Chart 4 shows Microsoft (MSFT) breaking through its February high to achieve a new record.  Stronger semiconductor stocks are also boosting the tech sector.  Chart 5 shows the VanEck Vectors Semiconductor ETF (SMH) nearing a test of its February peak.   A number of leading chip stocks are already in record territory.

Chart 4
Chart 5

QQQ TURNS UP... A big part of the current stock rally is a resurgence in the Nasdaq market.   That situation has taken a big step for the better.   Chart 6 shows the Invesco QQQ Trust surging more than 2% today after clearing initial resistance along its March high.   The QQQ is helping lead the market higher today and appears headed toward its February high.   Some of its biggest percentage gainers are coming from communication and technology stocks.

Chart 6
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John Murphy
About The Author:

A trailblazer in intermarket analysis, John authored key texts that shaped technical trading and helped generations of investors decode market trends using charts and correlations. Learn More 

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