ChartSmarter Wednesday Game Plan 4/2/14

Markets rose Tuesday with the Nasdaq leading the way for a second time this week. It recaptured its 50 day SMA today while enjoying its first 3 day winning streak in many weeks rising 1.6%. The last such streak was an 8 day winning streak between the days of 2/6-18 where the index bounced near the very round 4000 handle, and also retook its 50 day SMA early on in the 8 day run. With the two back to back 1% plus gains this week it has reclaimed basically all of last weeks 2.8% loss already. Problem is volume has not accompanied the move higher. Consumer discretionary and information technology plays were the leading groups Tuesday. Laggards include utilities and consumer staples. Semiconductors continued their winning ways Tuesday and volume has been there for the SMH. The ETF has been up 6 of the last 8 weeks after bouncing nicely near its 200 day SMA and the round 40 handle. One of the weekly losses for the SMH was last week and it was basically UNCH, a good relative strength performance compared to the Nasdaq’s near 3% weekly decline. The ETF relies very heavily on INTC making up almost 20% of the fund. INTC’s chart looks is building the right side of its cup pattern, but new and old names in the sector are thriving. AMAT TXN QCOM are being helped my lesser know names like AVGO MPWR and NXPI, with the latter taking out the round 60 handle Tuesday after being turned back their 5 times this month.