A repeat of last week with nine of the ten major sectors ending the week higher, and one struggling sector to watch. Technology was down 2.2% for the week after setting the pace and leading the broader NASDAQ higher. The challenge for the sector was the semiconductor space, down over 7% on the week. Regardless, the index ended up 1.2% on the week and continued the string of nine weeks to the upside. The weekly volume has been above average eight out of the nine weeks, showing the strength of this move higher.
Financials were down 2.3% on the expectations of last week's banking stress test announcement. As we all know, the news was perceived as positive and the sector led the week gaining more than 20%. The banks were up more than 30%! Regional banks added 21% on the week. Broker/dealers were high by 10.6%. The results show a bullish response to the stress test data.
Money is moving into the market and the result is more sectors breaking higher and creating a broader uptrend for the markets overall. Health care, utilities, and energy joined the positive trends moving higher. However, the market remains overbought, technically.
Commodities have joined the uptrend with a breakout this week. DBC, PowerShares Commodity Index ETF, broke above resistance at $21.30, DBA, PowerShares Agriculture ETF, broke above resistance at $26, and both are worth watching for a positive entry point.
Oil is one of the positive sub-sectors of commodities, moving above $58 per barrel this week. USO, the United States Oil Fund ETF, broke above resistance at $32.40. UNG, the United States Natural Gas ETF, spiked above the $14.45 resistance to close at $16.93, breaking the downtrend line in play near $16 as well. KOL, Market Vectors Coal ETF, continued to move higher from the break through resistance at $17.35 last week, closing at $22.85.
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