ChartSmarter Monday Game Plan 8/3/15

Markets looked like they were going to make it 4 straight sessions going out on highs, but a lunchtime slowdown sent indexes to close neat the lows for the day. Both benchmarks managed to CLOSE above their 50 day SMAs and for the week the S&P outperformed the Nasdaq higher by 1.2% to a .8% margin. On the YTD basis the Nasdaq still holds a commanding lead higher by 8.3% for 2015 to the S&P 500’s 2.2% rise (the Dow is still slightly negative for the year). Earnings continued hot and heavy this week and biotechs made some positive noise with 2 heavyweights GILD and AMGN showing nice weekly gains. AMGN rose 11.3% on its best weekly volume of the year, although Fridays session did record a bearish shooting star pattern from all time highs. GILD rose 4.5% for the week and continues to trade wide and loose however. Both of those stocks comprise of more than 8% of the ETF IBB being the second and third largest holdings and looking at its chart one sees how it was stopped at the round 400 handle on 7/20 and has sold off since. BIIB has a lot to do with that move as it now stands 34% off its recent all time highs after last Fridays disappointment. The IBB on the weekly chart looks soft to me as I notice three 5% plus selloffs in above average weekly trade ending 3/27, 5/1 and 7/24. GDP news that showed the economy was weaker than expected should not have surprised many by looking at some of sectors that will expose it. The transports have woken up a bit as the IYT gained 4.1% reclaiming its 50 day SMA for the first time since late March. One name that demonstrates the fragility of the economy is durable good king WHR. With the last couple weekly gains it has dug itself out of bear market mode, but the round numbers of 160 and 180 have played a factor and we feel that will continue. Below is how we presented the name in this Wednesdays Game Plan.