Stocks snapped their 7 day winning streak as the S&P 500 fell 0.24% and the NASDAQ 0.32%. In light of the latest advance it was a very minor pullback. News flow continues to be light as the main event of the week – tomorrow morning’s retail sales – await. There was some news overseas but to show you how backwards everything is, in Britain there was a poor industrial output report but since that dropped the pound versus other currencies, and brought in hopes for more quantitative easing from the Bank of England, the FTSE in Britain rallied. We truly live in a George Costanza world.
Not much new to report on the major indexes – they continue to GRIND bears up in a slow and steady advance.
There continue to be different areas of the market rallying as sector rotation continues – of late more conservative healthcare and more aggressive biotechnology are both hot areas.
Yum Brands (YUM) started the day off with big gains but gave back much of them after the parent company of KFC and Pizza Hut said same-store sales in China climbed 2% in February, surprising analysts who had expected a decline of 9%. The company also posted a 20% decline in the first quarter, less than the 25% drop the company had previously estimated.
One interesting chart formation is in the housing stock ETF - it could be forming a bearish “triple top” formation. Considering the housing stocks were the nexus (along with financial stocks) of much of the strength of the market over the past half year, this is one to watch in the coming weeks and months. If there is not a new high coming in the future it could be telegraphing some issues for not only this space but the larger market.