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

NASDAQ

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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Dollar

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

^SPX data by YCharts

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Disclaimer

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request the advisor will provide a list of all recommendation made during the past twelve months. Past performance is not indicative of future performance.