The markets continued their crazy gyrations, with the SPY and DIA acting well to negate the bearish retracements after the prior week's Breakout Failure.
The S&P 500 negated that bearish wide range bar by retracing back to the top of it. That strength — and the fact that it is still in an uptrend in all time frames — suggest the gy possibility that we could see new all-time highs in that index soon.
The Internet sector ETF symbol FDN was among the weakest of sectors and was unable to turn positive on the week. This sector looks the most vulnerable to a further move lower if it cannot retrace much higher from here.
The strength in the Transports continued last week and, while Financials were up at their prior resistance, they held up quite well. If those two indices can hold in their respective resistance areas this week, they should be able to break out of these ranges and move toward the old highs.
Overall, there were more positives than negatives last week, but the Internet sector weakness could be the fly in the ointment that could ruin the bullish price action in those sectors and indices that are showing relative strength.
As always, we will monitor.
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