Last week’s Selling Stalls, Bonds Tested Breakout, Gold Hits Resistance

March 2, 2015
By Vlad Karpel

We saw actual selling pressure last week in stocks, but as usual, it was short lived. The S&P 500 ($SPY) moved above $211.78 on Tuesday afternoon then worked its way lower the rest of the week. With a close below $210.5 on the $SPY, the ETF fell around $1.4 in two and a half days. This action was fair and orderly and part of a normal pullback within a bigger uptrend right now.

Looking back at February it was quite the month with nice gains all around. Tech ($QQQ) was up almost 7 percent while small-caps ($IWM) gained over 3 percent. Consumer Discretionary SPDR (+7.41 percent) led, while the Utilities SPDR lagged (-8.03 percent).

This is a nice combination, with one of the most offensive sectors leading, and the defensive sector lagging for the bulls. The Bonds ($TLT) tested breakout levels mid-week last week. But they  could not hold today, breaking at $128. This negates the breakout and dashes the hopes of the bond bulls.

Gold ($GLD) trade continues to be bearish. A push at about $118 on the Gold ETF ($GLD) would signal that the gold bugs could be gaining some upside momentum. Have a great trading day!

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