The market ended the week mixed. The S&P 500 and Dow edged lower, but the Nasdaq and Russell 2000 closed slightly higher. Techs and small-caps showed some immunity to rising oil prices and an up-tick in interest rates. February has been a good month for small-caps as the Russell 2000 broke consolidation resistance and that breakout is holding. Not only is the breakout holding, but the index is also extending its gains. Broken resistance turns into support and it would take a move back below 800 to question this breakout.
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………..Oil and Gold makes moves in separate, but possibly related, inter-market action, the U.S. Oil Fund ETF (USO) surged back above its 50-day moving average and StreetTracks Gold ETF (GLD) jumped above $67. The oil ETF met resistance around 50 and consolidated over the last few weeks. This resistance level stems from broken support and the 50-day SMA. Look for a move above the early February high (51) to break free of this range and target further strength towards 55. Energy prices were not to blame for the jump in the CPI today, but further strength in oil could shift this blame in the future. Gold may also have an eye on future inflation as the yellow metal posted its biggest advance of the year on Wednesday.
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* Stockcharts.com
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