ChartSmarter Monday Game Plan 9/11/17

Markets ended the week on a mixed note with the Nasdaq acting the weakest with a drop of .6% on Friday. The optimist will look at its daily chart and confirm the near completion of a cup with handle pattern, the pessimist would say there is a double top with rejection near the bearish engulfing candle on 7/27. For the week it fell 1.2%, not even giving back half of the prior weeks gain of 2.7%. AAPL certainly contributed to the Nasdaq’s shortcoming as it lost 3.3% this week and is on a 4 session losing streak and amazingly it rose 21 of 26 weeks ending between 11/18/16-5/12/17, and before this week was on a 5 week winning streak. The S&P 500 slipped .6% and the Dow lost .9% as it clings to its rising 50 day SMA and now shows a symmetrical triangle. The doji candle the Dow recorded on Monday 200 handles higher from here was some foreshadowing for the rest of the week. Looking at individual groups Friday financials were the best performer with the XLK gaining .9% and energy which had been strong earlier in the week falling the most today with the XLE losing 1.1%. For the week there was some clear bifurcation with the healthcare group acting excellent as the XLV rose 1.6% and the financials fell 2.7%. Below is the chart of Q and how it appeared in our Tuesday 8/29 Game Plan, and notice how the very round par figure came into play as resistance on 8/25. It has filled in a gap and if it can somehow gather its strength and trade back above 100 it can really accelerate.