ChartSmarter Wednesday Game Plan 11/30/16

Markets backed off from decent session highs in the late afternoon hours as the S&P 500 and Nasdaq each added .1% and .2% respectively. The Nasdaq was up .65% midday and for the third consecutive session backed off nat the round 5400 number. Today the index recorded a spinning top candle which often signals indecision and a likely pause, if not retreat from the former trend (the doji candle from last Tuesday makes a pullback even more likely). Perhaps a retest of the double bottom breakout above a 5312 trigger from 11/17 would be healthy, which is less than 2% from current prices. Utilities displayed lukewarm muster Tuesday as the XLU rose .4%, and the last 5 days they have been a clear out performer higher by almost 3%, but the ETF is headed into a downtrend line here, and its recent advance as been accompanied by less than energetic volume. The best behaved sector today however was healthcare aa the XLV gained .65%. Its chart however still looks sickly, pun intended, as it recorded a recent death cross, with its 50 day SMA sloping lower since the beginning of September. It did receive a nice jolt of 3.5% on 11/9, the day after the election but has been unable to hold those gains like many other groups have. Bulls can point to the 11/23 gap fill session which also registered a bullish belthold candle as well. Energy once again was a clear laggard today with the XLE losing 1.2% ahead of the OPEC announcement tomorrow. It was able to bounce somewhat off the round 70 number and a successfully retested a rising 50 day SMA. We continue to monitor some of the best industries within tech and a subsector that fits the bill are the semis. Looking at the SMH its chart shows a bull flag pattern and a move above 72 would have a measured move to 78 area. One has to like how it CLOSED above the round 70 number on 11/18, taking out a 70.31 cup base trigger in the process and now sits just off all time highs. A name we continue to watch is CRUS and below is the chart precisely how it was looked at in our Wednesday 11/23 Game Plan. Their has been plenty of indecision around the 58 level and a convincing move above that number could be powerful.