ChartSmarter Thursday Game Plan 4/10/14

Markets were strong early Wednesday and accelerated gains into the finish line after the Fed minutes were released. The Nasdaq for a second consecutive day led with gains of 1.7%. It has rallied more than 130 handles off of Mondays intraday low, yet it stands 80 handles below Fridays intraday high. Volume once again was timid and it is readying itself for a test of the 50 day SMA just above at 4223. Th Nasdaq currently remains 4.5% off its most recent 52 week high. Healthcare led the way higher Wednesday which certainly helped the Nasdaq with names like BIIB CELG ALXN just to name a few up 5% or better. Curiously GILD barely budged, and this name began the onslaught in the group as Congress specifically challenged the companies drug prices. It lagged and gained 1%. The S&P 500 has looked technically better than the flashy, volatile Nasdaq, and trades just more than 1% off all time highs. The index has remained above its 50 day SMA, as that line was tested Tuesday and bounced smartly. Notice how the benchmark trades much tauter, bullish traits, than its chief Nasdaq competitor. Monday the S&P 500 not surprisingly met resistance almost precisely at the round 1900 handle, and put in an ugly outside day. It remains about 1% off the round figure and it will be interesting how the index reacts. Buckle your seat belts and I will maintain this volatility is bearish, although the last two sessions have proved me very wrong.