ChartSmarter Wednesday Game Plan 5/14/14

Markets traded around the UNCH mark for most of the day, bullishly absorbing yesterdays decent gains. The Nasdaq went back to its familiar role of laggard and fell .3%. One can make the argument that the index has now formed a symmetrical triangle that can break either way, but with the sagging volume trends and time spent below the 50 day SMA a fair argument can be made that it will break lower. As always wait for price confirmation. The S&P 500 fared nicely Tuesday finishing up by the smallest of margins, after Mondays nice 1% move higher. It did touch the 1900 line and back off ever so slightly, but it definitely held up much better than the last time that big round number was hit on 4/4. On that last occasion the benchmark lost 4% over the next 6 days. A quiet session today could leave the bulls comfortable overnight. The transports had a nice day as this group, which has a firm grip on the genuine health of the overall economy fared well today. The IYT had it 5 straight up sessions. The ETF broke through Monday above the round 140 handle hitting all time highs, but volume was tepid. It has not recorded an accumulation week since the week ending 3/7 when it rose 3.5%. Instead two weekly losses of 2.9 and .7%, the weeks ending 4/11 and 4/25 respectively, in higher trade give the chart an ominous feel. Is it ready to “derail”? This week the IYT is off to a hot start, up 2.4% so far. Will it “deliver” the volume? The bulls are all aboard.