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

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

Otherwise, enjoy the column!

Subscribe to the Monster Stock Market Commentary and join the 2,529 subscribers getting it for FREE every day!

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

Don’t forget to subscribe to get these commentaries sent directly to your inbox.

[wysija_form id=”1″]

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

We can write macro and market research for you! Email us to find out more.

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.