The major indices continue to sit very close to technical levels this week. Resistance is immediately overhead on the S&P 500 (NYSE: SPY) and literally every technical trader, and financial media outlet is looking at the same levels. For the week so far the SPY has remained relatively flat without much progress.
The Nasdaq 100 (NASDAQ: QQQ) has enjoyed a slightly better performance thanks to continued strength from Apple (NASDAQ: AAPL) and tech stocks early in the week. For the week the QQQ shows a modest gain, and is sitting just below recent resistance.
Oil (NYSE: USO) and Oil Explorers (NYSE: XOP) have been the real center of attention so far as traders adjust to the new reality of the US exiting the Iran nuke deal. Tuesday the President announced his withdrawal and the price of oil whipsawed around in a wide range. At one point in the day it was down 3.5% but closed well off it's lows. The XOP rocketed higher by 2%, nearly breaking to new highs.
Financials (NYSE: XLF) got a nice boost Tuesday following news out of Citigroup (NYSE: C). The financial sector has struggled to gain any real momentum lately as investors may have already priced in the next Federal Reserve rate hike which most feel will happen at the June meeting.
Finally the dollar (NYSE: UUP) continues to power ahead this week, adding to the last few weeks of gains. Technical traders will note the resistance level going back to last October as a possible sticking point, but for now the trend in the short term is solidly pushing higher day after day.