The ES on Friday was the stronger of the 2 indexes while the NQ has been clearly the out performer overall. The ES had a new closing high on Friday. The SPX is inches from the Ath of 2940.91. The NQ on Friday closed at a lower high of 7845.5 below the 7879.5. Lets see if this slight divergence becomes a theme today. The KEY wa the SMH which took a dive and held the 113.47 8 day zone. This area is critical for the NQ to stay strong and test highs.
Mondays I will take slow, but I believe the market is reaching an inflection pint in the near term.
TELL
IWM – is hanging in there. Taking out 158.69 would most likely lead to a test of 159.5.
CL AND XLE – crude took and held the 200 day MA. The XLE seems to have failed at the 200 day. watching 65.64 for support.
XLF – been acting very well. 28.35 would be next upside test. High level support is 27.41.
SMH – got crushed. needs to hold above 113.47 area for continued momo.
XLK – still acts great.
VLV- had a nice bounce of deep oversold levels 90.42 is the next test 200 ma. With 91.03 would nullify down move.
GOOD LUCK .. TAKE IT SLOW ON MONDAY MORNING
BalsamTrades 