ChartSmarter Tuesday Game Plan 6/27/17

Markets once again clung to the UNCH line Monday, with the exception of the Nasdaq which fell .3%, to start the week and I was a bit cautious as the Nasdaq flipped from decent early gain to a loss and one which felt like it could have easily been a 1-2% down session. I thought technology had righted the ship last week, but perhaps it needs to prove themselves a bit more. One should remained concerned until the highs of that bearish engulfing candle from 6/9 is CLOSED above. The S&P 500 chart is a bit tamer, and not as wide and loose, as the tug of war continues with its bull flag. The tight weekly closes the last 4 have to keep the bulls feeling optimistic. With this benchmark the concern is the amount of time things are taking to develop. Sure one can argue that it is consolidating at all time highs, but as there are price stops, remember that there is such a thing as time stops too. Moves that take to long to break above should be monitored very closely with a bit of skepticism. Looking at individual sectors Monday it was a little suspicious with the utilities and staples among the top 3 best performers, with the financials rounding out the top 3. Energy and technology lagged as the semiconductors seem to have run out of steam. Last week healthcare was a firm leader and names in the space should be watched to see if any follow through occurs. Below is the chart of LNTH and how it appeared in our Thursday 6/22 Game Plan. It is a good example of not taken a leader off your radar, as we profiled the name previously to enter above a bull flag trigger which never panned out. Monday the stock rose more than 4% after a recent initial touch of its 50 day SMA after a recent breakout above a cup base trigger of 14.30 on 5/3.