The markets started the week at yet another new high as investors still show very little signs of concern. Volume still remains low as is typical until we get through the Labor Day holiday. There are some sectors, however that are staying active as relevant news causes volatility.
The S&P 500 (SPY ) moved up to a new all time high Tuesday, but just as we saw last week it was unable to stay at the highs into the close. The selling pressure was light, and the trading range was tight. Traders continue to note the summer time doldrums here and show little interest in either chasing new highs or taking risk off.
The same can be said for the Nasdaq 100 (QQQ ) which also is hovering just off the all time high. The trend here remains steady but has paused a bit at these highs. As of Tuesday the Nasdaq 100 has bounced, nonstop, over 15% from its Brexit lows.
Crude oil (USO ) pulled back from its highs set last week, but news today from IRAN caused a sharp reversal intra-day. Volume was well above average and shares of the popular ETF closed near the highs of the session.
The retail sector (XRT ) continues to show strength. Earnings from Best Buy (BBY ) helped cause a rally Tuesday that pushed the sector up to, but not quite above the highs of the year. Traders notice that this most recent rally has been with consistent trading volume.
Lastly, the home builders (XHB ) surged to new 2016 highs Tuesday as reports came out that New Home Sales were strong. Add to this the nice earnings report from Toll Brothers (TOL ) and you have a recipe for a rally. The home building sector dominated the headlines Tuesday.
