Growth and consumer discretionary stocks recaptured traders and institutions attention on Monday, with many weekly charts rebounding off the respective 10emas. Technology and growth stocks, Microsoft (MSFT), Apple Computer (AAPL), and Nvidia (NVDA) printed very active weekly charts, closing near session highs. Consumer discrtionary and retailer stocks, Amazon (AMZN), Target (TGT), and Costco (COST) also participated in Monday’s bullish breakouts.
Consumer discretionary stocks are out performing consumer staples stocks, which points to a aggressive stance by institutions. We look for this to continue into the next few weeks, as earnings are coming in very positive, following the recent market reset.
Microsoft Weekly Chart
Microsofy broke out to fresh 52-week highs on Monday, while the stock trades higher (+0.68%) this morning. Volume for the past 2 weekss was above average, with the past 4 sessions notable as the stock breaks out. MACD is bullish and rising above its signal line.
“FANG” stocks mirrored Microsft’s perfoirmance, helping propel the weekly charts to new highs.
After a brief dip, U.S. indices shook off sellers and rallied into the close. Futures are green today, suggesting a fifth consecutive gain for the S&P 500 and Nasdaq. In addition, these indices closed near session highs, promoting a bullish stance.
The Nasdaq 100 (NDX) rose 1.02% as technology, internet and consumer discretionary sector shares were scooped up by investors. The NDX closed above the 50d moving average for the first time since September 27, on very bullish activity.
The S&P 500 pushed above Friday’s highs, adding 0.34%. Price action is firmly above the 50d moving average. The Nasdaw closed at +1.41:1 up volume. NYSE volume was light.