STOCK INDEXES END WEEK ON A STRONG NOTE -- CONSUMER DISCRETIONARY AND FINANCIALS ARE HITTING NEW RECORDS

John Murphy
by John Murphy,
Pioneer Technical Analyst

STOCK INDEXES CLEAR 50-DAY LINES... Stocks are rising again today following yesterday's strong rally.   And their technical condition is looking stronger.  Chart 1 shows the Dow Industrials rising to the highest level in a month and moving back above its blue 50-day average.   Chart 2 shows the S&P 500 trading above its 50-day line as well.   The SPX is also trying to clear potential chart resistance at 44.65.   Chart 3 shows the Nasdaq Composite trying to also clear its blue line.   Eight of eleven sectors are in the green with two notable outperformers.

Chart 1
Chart 2
Chart 3

TWO SECTOR RECORDS... Consumer Discretionary stocks are having an especially strong chart day.   Chart 4 shows the XLY surging into new record territory.   It's being led higher by hotels and retailers.  Financials are continuing to show market leadership.   Chart 5 shows the Financial Sector SPDR (XLF) moving into record territory as well.   Rising bond yields are are a big reason for their stronger performance.  Big banks are also reporting strong earnings.

Chart 4
Chart 5
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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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