ChartSmarter Monday Game Plan 6/16/14

Markets concluded the week Friday with small gains, but lower for the week. For the week the Nasdaq fell .25%, taking a smart breather following a 4 week winning streak where the index advanced 6%. The Nasdaq completed a handle on its cup base Friday and a move above 4347 would be bullish. This week was the fifth consecutive week that the Nasdaq outperformed the S&P 500. However it still trails the S&P 500 on a YTD basis up 3.2% compared with a 4.8% gain for the S&P 500. The S&P 500 has the look of a bullish flag formation, but it was stopped at the round 1950 number this week and the benchmark can still look great even with a pullback toward its 50 day SMA near 1889. The energy group continued to flex its muscles and is benefitting form turmoil in Iraq, but this group has been strong throughout 2014. The XLE is currently on a 4 week winning streak with the advances gaining with each successive week. Volume has been paltry. The chip group made a very strong move this week on the back of INTC’s huge 7% gap Friday. It has displayed great action following its 27.34 cup base trigger on 6/3, and that is exactly what you want to see from a new breakout. Remember the best ones will work out right away. Notice however that it was stopped right at the round 30 handle, and expect some prudent digestion here. Merger news continues with OPEN being taken out at a very healthy, or frothy 48% premium by PCLN. Other lesser known moves Friday occurred with interest in IGT and EXPR, which both gained 10 and 21% respectively.