ChartSmarter Wednesday Game Plan 8/31/16

Markets finished up a down session which felt a bit worse than it was with the Nasdaq and S&P 500 both declining .2%. Again it was the financials that led the way for a second consecutive session, yet today was much more decisive than Monday. Tuesday it was the only one of the major S&P sectors to gain ground with the XLF rising .9%. Among the lagging groups were the utilities and staples which gave up 1 and .5% respectively. The Russell 2000 eked out a small gain thanks to a large influence with the finnies the largest influence on the IWM. Some groups are continuing to look weak including the homebuilders, which one would think would be thriving in this environment. Retail stalwarts have begun to retreat and although it could be just prudent pullbacks one should keep an eye on them. The top 3 in my eyes are LULU, BURL and PLCE. LULU recorded a bearish shooting star candle last Thursday near the round 80 number and could have formed a long double top pattern with highs made way back during the week ending 6/14/13 of 82.50 (last week also recorded a bearish engulfing week). Talking about the round numbers PLCE hit the 90 figure precisely with a reversal on 8/17.