ChartSmarter Tuesday Game Plan 4/15/14

Markets displayed some classic bearish characteristics mid day Monday, as markets started out firmly, only to give up a good chunk of their gains. A nice rally in the last hour confounded many, as the markets like to do, put benchmarks firmly in the black. Once again the large cap Dow led the way with a .9% advance, compared to the S&P 500’s move of .8% and the Nasdaq up .6%. Remember that Tuesdays have been a bright spot as @ryandetrick has pointed out here. It is too early to tell if this downturn has more fuel in the tank, but we have to be aware that within down periods can be some rip roaring rallies. But the trend is obviously down now and long ideas, until market climate improves, should be treated as trades, not investments. Energy was among the strongest of group, demonstrating that those that are strong tend to stay that way. Oil service names like HAL SLB BHI have been talked about positively non stop it seems. SLB is looking to “drill” through the round par figure. EOG is attempting to do exactly the same. The banks were in focus today, perhaps even more with JPM’s miss Friday. Was interesting to see JPM lower even at the heights of the markets move Monday. Both MTB and C scored nice gains today. Looking back on C’s chart one could have seen the double bottom that was put in on Friday right above 45, with the other leg coming with 6/24/13’s low of 45.06. It would have taken courage to purchase ahead of earnings this morning, and it is running into 50 day SMA resistance near 48.30.