Tech Leads Nasdaq, S&P 500 Bounces On 50 Day Moving Average

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The Nasdaq advanced today after finding a bottom on Friday morning. It was technology’s (XLK) turn to lead the way, followed by consumer discretionaries (XLY) and Energy (XLE). Biotech (IBB) lagged today falling about 75 bps.
Nasdaq Technology

^IXIC data by YCharts

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Turning our attention to the Dollar, we find that it stuck in a lower trend, but let me overlay the Dollar chart with the 10-2 chart, we can let that be our guide.

Dollar Index, 10-2 Spread

^DXY data by YCharts

Similiar? Kind of? Will the Dollar see a sharp spike higher? We will need to continue to watch that. But perhaps the 10-2 spread is a window into the future of the Dollar. That would certainly be bearish for many materials (XLB) and commodities.

S&P 500 – 50 Day Moving Average

Finally, the S&P 500 is sitting right on its 50 Day Moving Average? Is time for the index to jump higher? The last couple of times the index advanced after it touched the 50-day.
S&P 500, SPX, $SPX

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^SPX data by YCharts

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