The markets started off the week with a strong push higher on Chinese economic news. The S&P 500 (SPY ) shot higher on Monday and followed through slightly on Tuesday. At this point the SPY is now less than 3% from hitting all time highs.
The Nasdaq 100 (QQQ ) has also enjoyed a strong rally back towards highs this week all on a strong, broad based bullish rally. The QQQ is also less than 3% from all time highs and has shown a touch more strength in the process.
Oil (USO ) has been a big mover this week, breaking back above the 200 day moving average for the first time since October of last year. Confirmation of the continued production cuts and overall output from OPEC have been the major tailwind for crude which is now higher by over 34% this year alone.
Oil explorers (XOP ) and Oil service (OIH ) have been slowly waking up to the strength in crude with a move back towards the high end of their recent ranges. For the year these two areas have not really budged out of a sideways range. The recent higher low set back in March has many technical traders thinking that was the first hint at a breakout from this range.
Regional Banks (KRE ) have now recovered about half of their "Fed decline" two weeks ago when the Federal Reserve made their announcement of no rate hikes in 2019. The regional banks took it the hardest with a 12% decline on that news. Technical traders note the recover has brought the regionals back to their downtrending 20 period moving average which may act as short- term resistance.
Lastly, healthcare (XLV ) continues to hold back, under performing the broad markets as it has for over a month now. The XLV does find itself in a unique, bullish technical pattern but the bulls continue to discount the potential due to the relative weakness.