The markets have started the week trading back and forth. On Monday the S&P 500 (SPY  ) broke to new highs, but by Tuesday had begun retracing it's steps. Tax reform is part of the reason for this as traders always adjust around uncertain events. The other reason can be attributed to the short term extension which causes technical traders to take some profit in the short term.

The Nasdaq 100 (QQQ  ) has performed similarly to so far this week with the same back and forth moment. Thanks to some weakness in tech stocks the QQQ has been slightly weaker on the week. For the year it is still higher by over 30%.

Metals and mining (XME  ) has been strong so far this week with gains of over 3%. This has been a strong sector since November as many are taking the stance that gold and gold stocks will move higher in the new year. Technical traders note the overhead resistance at the $35 level as a short term spot of concern.

Transportation (IYT  ) stocks continue to move to new highs this week and remain strong following the Thanksgiving break. For the year the transports have slowly and steadily pushed higher, but since the end of the summer it has started more of a defined uptrend. This week so far the IYT is up another 1% and remains at highs of the year.

Finally, consumer staples (XLP  ) has been struggling to get past resistance. The XLP has moved aggressively to highs since the start of November. The aggressive move has made it all the way to the prior high of the year set back in May, but so far has not been able to attract the attention to push it beyond that. The sharpness of the rally may cause investors to sit on the sidelines for a bit to avoid chasing.