The NASDAQ100 and NASDAQ Composite closed last week up 85.0% and 87.1%, respectively, from the March 2009 lows and above previous resistance (52 week high). Although the S&P500 managed to break through the previous swing high it closed at 1,149.99, just below that resistance level of 1,150.45, a rally of 72.5% over the past year.

US Index Performance

Further confirmation of the strength of this market will be when the S&P500 closes above resistance and the Dow Industrials can break through resistance and close above it. The Dow Industrials and Dow Composite closed less than 1% away for their 52 week highs.

Next week some profit taking and/or sideways movement can be anticipated. Keep an eye on the leading sectors for new entry setups. 

ETF Sector Comps from recent swing low

Leading sector ETFs, which have hit new 52 week highs, closed above previous resistance, and broken out of good bases include: 

  • Consumer Discretionary (XLY)
  • Consumer Staples (XLP)
  • Industrials (XLI)
  • Retail (XRT)
  • Real Estate (IYR)
  • Homebuilders (XHB) 

SPDRs Select Sector Consumer Discretionary (XLY)

Consumer Discretionary ETF (XLY)

SPDRs Select Sector Consumer Staples ETF (XLP)

Consumer Staples ETF (XLP)

SPDRs Select Sector Industrial ETF (XLI)

Industrials ETF (XLI)


Retail ETF (XRT)

iShares Dow Jones US Real Estate Index Fund (IYR)

Real Estate ETF (IYR)

SPDRs S&P Homebuilders ETF (XHB)

Homebuilding ETF (XHB)