Perhaps the title should have been “markets higher, but where are our charts?” The lack of leadership continues as we search for viable patterns. A bit of good news was the NAHB housing index or homebuilder confidence index was much better than expectations. The worse performing sector by far was the energy complex. As a whole the S&P energy group was down nearly two percent. Overall, today was quite the boring session with very little excitement for leadership. We continue to see overbought conditions, but we have been able to continue to push higher.
There was a little excitement with WTW – Weight Watchers. Oprah Winfrey has invested in the weight loss nutrition company. In the after-hours session IBM reported revenues short of expectations, better earnings, and revised its outlook lower. The stock did not react well closing the after-hour session down nearly 5%. Not what you want to see from the technology giant. Since IBM is a high priced stock will impact the Dow Jones Industrial average is big. More earnings this week with MSFT and AMZN after the bell on Thursday. FB doesn’t report for a bit and still looks okay although volume continues to taper.
We would love to have more from this market, but we simply do not have much to talk about. Sure Energy was lower, but it makes up just under 8% of the S&P 500. Information Technology is the largest at more than 20% of the S&P. It matters what sector the laggards are coming from.
Let’s hope we get more charts heading our way. It would be nice to have a great year-end rally to cap off a good year. Stay Focused!
