The markets have spent the first part of the week surging back from last week's aggressive selloff. Tuesday the S&P 500 (SPY ) added over 2% thanks to strong rebounds in names like Adobe (ADBE ) and the banks. The SPY still officially closed below the 200-day moving average, but a rapid recovery seems to have pushed the bears away for now.
The Nasdaq 100 (QQQ ) also surged higher this week so far as the big name tech stocks saw another round of buying at these discounted levels. Netflix (NFLX ) is reporting strong earnings and a beat on subscriber numbers also helped the overall bounce from the 200-day moving average.
Healthcare (XLV ) has been a strong sector this week thanks to earnings reports from Johnson & Johnson (JNJ ) as well as United Healthcare (UNH ). Adding over 2.5% on Tuesday alone, the healthcare stocks recovered just about half of the losses suffered over the last two weeks.
Homebuilders (XHB ), which have suffered 30 days of straight declines, saw a bottom-picking attempt by buyers this week. Tuesday the XHB popped 2.25% on decent trading volume thanks to a note from an analyst saying that this discounted move is a good entry point. Homebuilders have been rocked by higher costs, taxes, and higher interest rates.
Gold and Gold Mining stocks (GLD ) took a break from their quick pop last week. So far this week the price of gold as well as the gold miners (GDX ) have pulled back slightly as traders wait to see if another decline is on its way for the markets.
Finally, the transports (IYT ) have added over 2% this week so far thanks to strong earnings from CVX (CVX ) and an earnings beat from J.B. Hunt (JBHT ). The transports were one of those sectors that sold off hard and still remain under their 200-day moving average.