And just like that everyone is happy again...for now. This week has started with a strong rally in attempt to recover last week's losses. Though the rallies have been strong on the way up, they have not been able to push to new highs on the S&P 500 (SPY ). Technical traders note the series of lower highs along the way which has many still questioning any bullish move. For the year the SPY is still comfortably higher, though in recent weeks volatility has been creeping up.
The Nasdaq 100 (QQQ ) continues to be supported by only a few strong names, but remains near highs. This week so far it has to be said that the bulls are in control. For now traders will be looking closely at the recent down trend to see if the series of lower lows can be broken through. Until then the assumption by many is more volatility in the short term. For the year the QQQ still holds a comfortable 20% gain.
The metals and mining sector (XME ) has been a focus this week as volume is creeping higher and higher. Technical traders claimed support at the $29.50 area and buyers have noticed. This week the XME is higher by 3% and the higher volume has caused many to focus back in on the flat sector. Since March the XME has been in a wide trading range with only one attempt to break above it.
Finally, after selling off over 8% in the past few weeks, the retail sector (XRT ) has found some support. So far this week has been strong with a 1.37% gain coming on Tuesday. The bulls have been cautious though as price is sitting just off the lows for the year. This continues to be one of the weaker sectors on the year with losses totaling over 13%.