The Tale of Two Markets

A little volatility last week with the bears taking Monday and Thursday, but the resurgent bull stormed in on Friday with both a strong open and close.

Tech ($QQQ) and large-caps ($SPY) led the bounce, while small-caps ($IWM) lagged with smaller gains. Keep an eye on the small-caps ($IWM), they need to lead.

The consumer discretionary ($XLY), industrials ($XLI), and materials ($XLB) sectors led with +1 percent advances. The Home Construction iShares ($ITB) and the Retail SPDR ($XRT) paced the discretionary sector with +1 percent gains. This is positive going forward.

I did not like the lagging nature of the housing sector. Semiconductors ($SOXX) led the tech sector, gaining +2.78 percent. Let’s see if this volatility was just a flash in the pan or a preview of what is to come in this new trading month.

Have a great trading day!