The markets have started the week by trying to recover from last Friday's sell off. Tuesday the markets were able to recover about half of those losses but technical traders noted the intraday weakness as a sign that all is not all clear in the short term. The S&P 500 (SPY ) still remains above the 20 day moving average and up over double digits this year.
The Nasdaq 100 (QQQ ) has traded similarly this week but remains a touch stronger overall. With the major tech names (aside from Apple) getting a little boost on Tuesday the index has been able to remain in a strong and steady uptrend.
Oil (USO ) has enjoyed mostly bullish action this week following the pullback Monday that was bought off technical support. The commodity continues to be in a steady uptrend, trading nicely above the 20 day moving average. Technical support areas of the prior highs have continued to act favorably for the bulls.
Oil related areas like the explorers (XOP ) have also moved towards highs on the strength of oil. The oil explorers have been underperforming relative to the strength in oil since the start of the year, trading in a wide range. Recently pricing moved back towards the highs of the range leaving the bulls itching for a breakout.
Regional Banks (KRE ) attempted a rally off lows Tuesday following the strong selloff last week when the Federal Reserve announced they would leave rates unchanged for the remainder of 2019. Technical traders noted the sector being able to close at the highs of the session showing the bulls now ready to pick at least a temporary bottom.
Consumer staples (XLP ) broke to new highs on Tuesday as investors continue to look for the defensiveness of the sector. Given the increasing talks and signs of a slowing economy investors have begun to shift money into the sector causing a rally of over 10% this year.