The markets remain near all time record highs as investors continue to respond to an earnings season that was way better than analysts had predicted. The S&P 500 (SPY ) has hit record highs each day this week and historical performance following Federal Reserve meetings shows we could be in for more highs to come.
The Nasdaq 100 (QQQ ) remains in a strong and clear uptrend but that trend has slowed a little following poor earnings from Intel as well as a touch of weakness across the tech heavy space. For now there is no arguing the strength of the QQQ which boasts about a 25% gain on the year.
Semiconductors (SMH ) have recovered slightly after a quick pullback last week. It was a busy week for earnings in the space last week which caused an uptick in volatility and a downtick in prices which came off 52 week highs. Intel (INTC ) has been a drag on the space since reporting their earnings which, at this point has caused the stock to lose over 10%. Though the Semis have seen some weakness in the short term trend is still clear to the upside with total gains still over 30% for the year.
Consumer Staples (XLP ) has hit new highs again this week as the sector continues to enjoy a clear, strong uptrend. For the year the sector is higher by about 14% as investors note the earnings from many of the names which show higher prices for goods are still generally being absorbed by consumers. Technical traders note the next overhead resistance about 3% above current prices.
Communication Services (XLC ) have been hit hard this week mostly thanks to Alphabet (GOOGL ) which missed on earnings pushing shares to their lowest point in over a month. Shares of both classes of Alphabet make up a whopping 24% of the sector so it is easy to see why the XLC has pulled back off it's highs.
Transports (IYT ) have cooled off this week following their impressive run up over the last few weeks on earnings. The rails reported earnings that were mostly better than expected and have been a supporter of the space but this week with the rails cooling off and a strong selloff from UPS (UPS ) the transports have pulled back towards some technical price support as well as the 200 day moving average. Market technicians will also note the golden cross.