ChartSmarter Monday Game Plan 5/5/14

Markets finished out the week Friday on a quiet note with both the Nasdaq and S&P 500 lower by .1%. For the week the Nasdaq was higher by 1.2%, bouncing off the round 4000 figure on Monday. It remains lower YTD by 1.3%, but perhaps some positive technical action can be seen in recent weeks with that bounce and the precise reversal off the 200 day SMA on 4/15. One can make the case that a double bottom formation is taking shape with a potential pivot above the 4286 level from 4/2. That was only one month ago but seems so far away, and it must first reclaim its 50 day SMA at 4207, 2% away. The better looking technical benchmark, the S&P 500, gained almost 1% this week, and is UP 1.8% YTD. The index remains less than 1% off all time highs, while the Nasdaq is still almost 6% from its. It recorded all time closing highs, and the elusive, round 1900 handle is on the horizon. In my opinion the S&P 500 must stop playing footsie with that number, and take that figure out. A 1% advance next week would put it right at the magic number. On Friday materials and energy which led the way down Thursday, were among the best performers Friday. We see the big names in the energy sector doing well like the XOM, CVX, COP’s. They have played nice catch up to their smaller peers like the CXO, CLR, WLL of the space. On those aforementioned names the weekly charts look fine, but there does seem to be some potential impending signs of weakness on the dailies. 3% lower moves for WLL CLR on 4/25 and 5/1 in heavy trade are not yet concerning, but something to watch to see if more selling occurs. EOG could very well move the energy markets with its earnings report Monday after the close. It is lower 6 of the last 7 days, many in big trade, and this best of breed name is sitting right on 50 day support. If that S&P 500 wants move above 1900 with growing energy exposure, EOG may have a say about that.