Stocks moved sharply higher for the second straight week with broad participation. RSP, SPY and QQQ recorded 52-week highs, 8 of the 11 sector SPDRs recorded new highs and 8 of the 11 equal-weight sector ETFs hit new highs.
Small-caps are still lagging as IWM and IJR did not hit new highs and only one small-cap sector hit a new high (PSCU).
The tech-related ETFs extended further on their flag and pennant breakouts with new highs in QQQ, XLK, SKYY, FINX and IPAY. The gap and breakouts zones turn first support to watch on a throwback.
SPY is up 4.93% in the last two weeks and this is the largest two-week advance since the first half of June. The June surge ended the May correction and led to a new high. The current two week surge comes after a two week pullback. With this bounce, SPY established support in the 320 area. A break here would forge a lower low and signal the start of a corrective period.