ChartSmarter Wednesday Game Plan 7/2/14

Markets enjoyed a powerful session Tuesday as the benchmarks rallied nicely. The Nasdaq led the way with a 1.1% advance and is now basically even with the S&P 500 on a YTD basis. We have been pounding the table that this would most likely happen, but it did so more rapidly then we thought. The .7% gain for the S&P 500 was nothing to sneeze at and the YTD tallies are a 6.6% gain for the Nasdaq and a 6.8% gain for the S&P 500. The Nasdaq is now higher by 1.4% for the week and looking to book a 7th weekly gain in the last 8. The S&P 500 is now less than 2% from the big, round 200 handle. You have to wonder the sentiment of those who have been on the sidelines for this massive move higher (the Nasdaq is now up almost a double from the round 2300 handle lows made back during the week ending 10/7/11) and when they will decide to throw in the towel and jump back in. This does continue to be one of the most hated rallies of all time, and to be fair I am not as long as I would like to be. Healthcare powered higher Tuesday and a look at some names in the biotech arena shows some very strong moves. CELG which just underwent a 2/1 split is now almost 10% higher from an 81.85 cup with handle trigger it took out on 6/19. For good measure the stock followed through almost 2% the following session in double the average daily volume. The BBH took out a cup with handle trigger of 96.72 on Tuesday in good trade. Notice how the bottom of the cup found precise support at the round 80 handle.