ChartSmarter Thursday Game Plan 4/3/14

Markets were basically flat on Wednesday as both the Nasdaq and S&P 500 digested big weekly gains thus far. The S&P 500 looks like it has a magnetic pull to the big round 1900 handle. The 1850 handle was resistance starting on New Years Eve and through January and conversely has been rough support throughout March. Volume still has been unconvincing, but price pays and the tape continues to act benign. The Nasdaq seems to be reasserting itself with recent strength and just yesterday overtook the S&P 500 on a YTD basis up 2.2% coming into today versus the S&P 500’s 2% advance. The Nasdaq’s chart is still in a nice uptrend making higher highs and higher lows. Tuesday it reclaimed its 50 day SMA following previous examples of doing just that dating back to brief periods when it fell below that important line only to quickly recover it last June, on 10/9/13, and again in late January/early February this year. Is it mapping itself toward new multi year highs just as it has done in a rapid fashion each of those previously mentioned times breaking back above? Time will tell. Groups leading the charge Wednesday were sectors essential to a growing economy. Industrials, materials and energy led the way. One of my favorite industrial names at the moment is EMR. Put it on your watch list as it builds the right side of its base. It is still down 3% YTD, but has put in back to back strong weeks, and is up this week nicely thus far as well.