ChartSmarter Tuesday Game Plan 8/5/14

Markets rebounded reminiscent of the old “mutual fund” Mondays, but volume did not back up the punch higher. Both the S&P 500 and Nasdaq rebounded after going negative in the late morning and rose .7% with the Nasdaq reclaiming its 50 day SMA as well. Energy was the standout sector Monday with some names making some powerful names. But as always the best of breed names perform the best. Names like APC and WLL up 4.8 and 4.3% respectively. Notice how many power players in the group sliced their 50 day SMAs last week but these two are comfortably above theirs. Tomorrow EOG reports and that name has influence over the group and after the close it will be closely listened too. It sliced its own 50 day SMA in big trade last Thursday and fell 5% the last two sessions of last week. The mood on the stream seems like many calling for a sustained bounce, almost like participants are just trained to buy dips. Some stocks are beginning to react negatively to good news which should not be ignored. Take for instance F that had a very nice sales report last Thursday and still fell more than 1%. It had shaped out a nice cup base with a trigger of 18.12 in a long 9 month plus base, and that pivot was taken out intraday on 7/24 but never CLOSED above it. Peer GM which is in bear market territory, lower by 20% from recent 52 week highs, we do not even have to talk about. The chart is a mess down almost 11% over the last two weeks, and today halted an 8 day losing streak, but notice how weakly it closed today, not joining the lukewarm market celebration.