The markets continue to respond to earnings season with just about 9% of the companies reporting so far. The S&P 500 (SPY ) continues to push higher as the banking sector among others moves higher on earnings.
The Nasdaq 100 (QQQ ) has already made a new, all time high this week thanks to the familiar names in the tech space that make up the popular acronym F.A.N.G. With those names, in addition to Microsoft (MSFT ) showing continued strength, the QQQ continues to be a solid definition of "bull."
A few areas of the markets that are grabbing a little attention are the Consumer Staples (XLP ) and the Healthcare (XLV ) sector. The XLP has been slowly moving off it's lows since May and traders continue to note the solid volume on this recent rally. The XLP has now managed to creep off it's lows by almost 9%, right back to the 200 day moving average.
Homebuilders (XHB ) was one of the stronger areas of the markets on Tuesday as it to pushes back into the 200 day moving average. Earnings season will likely have a huge impact on this fragile space.
The metals and mining (XME ) stocks continue to hold their 200 day moving average but the volume has been waning, leading many to question the future of this space. Add to it the fact that gold (GLD ) is falling rather rapidly to the $1200 price target and you have a potential recipe for more weakness.
Lastly, the Dollar (UUP ) perked up on Tuesday and is now holding at recent highs thanks to one man. Tuesday the Federal Reserve Chairman, Jerome Powell commented that the economy was looking strong and he expected that to continue which led to a small rally in stocks as well as the green back.
